Intrastat in Denmark

When transactions exceed a certain threshold amount, businesses are obligated to report both the arrivals and dispatches of goods to and from other EU member states. Intrastat serves as a statistical system for companies involved in EU trade, focusing on monitoring the flow of goods and producing foreign trade statistics. These statistics are crucial for formulating trade policies and conducting sector-specific analyses. Businesses must submit Intrastat declarations that detail these movements. If you require additional assistance with Intrastat, feel free to reach out to us for support.

Intro to Intrastat: Key concepts and insights

Since January 1, 1993, Intrastat has replaced customs declarations as the primary source of trade statistics within the EU. This system plays a key role in monitoring Denmark’s trade in goods with other EU countries, including both imports and exports, and reflects the development of the internal market.

Through the Intrastat platform, you can generate and submit data on trade between EU countries and regions. This information is essential for compiling Balance of Payments and National Accounts statistics, and is also used by government ministries to shape trade policies and forge trade agreements. Consequently, maintaining high-quality standards for this data is imperative. Each EU member state sets its own reporting thresholds, leading to variations in Intrastat data requirements across different countries.

For companies engaged in international trade within the European Union, adhering to Intrastat regulations is often necessary alongside submitting regular VAT returns and/or European Sales Listings (ESL).

Danish Intrastat reporting thresholds

Businesses based in a European Union member state that participate in intra-community trade, including both arrivals and dispatches, are required to file an Intrastat declaration if their transactions surpass the established thresholds in that country. This obligation pertains to the volume of purchases or sales conducted within the EU’s internal market.

There are two main statistical thresholds within the Intrastat system: the basic threshold and the detailed threshold. The detailed threshold is set for much higher transaction values than the basic one. The primary difference between these thresholds lies in the extent of data required. Traders who exceed the basic threshold but fall short of the detailed threshold only need to submit a less comprehensive Intrastat declaration.

Starting January 1, 2024, Denmark has adjusted its Intrastat reporting thresholds as follows:
- Arrivals: DKK 22 million (about €3 million), an increase from the previous DKK 13 million.
- Dispatches: DKK 11 million (around €1.5 million), up from the earlier DKK 10 million.

The value of goods, as indicated by the invoice amount, is used to set the reporting thresholds. Authorities keep track of these thresholds and regularly notify businesses to file any outstanding Intrastat returns.

These thresholds indicate the value of goods that need to be reported in Intrastat declarations and may be adjusted periodically. To remain compliant with Intrastat reporting obligations, businesses must stay informed about these thresholds and ensure their data is accurate.

Managing export and import data in Intrastat reports in Denmark

Mandatory reporting to Intrastat is required when a company’s trade with other EU countries and Northern Ireland exceeds designated thresholds. For 2024, companies must submit Intrastat import reports if:
- their total imports of goods from other EU countries and Northern Ireland surpassed 41 million DKK in 2023,
- their imports from these regions exceed 41 million DKK during 2024.

Similarly, Intrastat export reports are required for companies in 2024 if:
- their total exports of goods to other EU countries and Northern Ireland exceeded 11.3 million DKK in 2023,
- their exports to these regions surpass 11.3 million DKK during 2024.

For Intrastat declarations in Denmark, the use of commodity codes is essential. These 8-digit codes categorize goods for both external and intra-EU trade statistics. The Combined Nomenclature (CN) system, which classifies these goods, is updated annually to maintain accurate and up-to-date classifications, including the addition of supplementary units when necessary. Importers must file separate entries for each type of goods (identified by an item code) imported during the reference month, as long as the transaction type and the partner country within the EU, including Northern Ireland, remain consistent. Conversely, exporters need to classify their item entries according to the origin of the goods and the VAT number of the recipient.

Understanding Intrastat reporting in Denmark involves recognizing that the system encompasses a wide variety of transactions beyond simple imports and exports.
- Physical movement of goods: This is the most frequently reported transaction under Intrastat. It includes the transfer of goods between Denmark and other EU countries, including Northern Ireland, regardless of whether a sale takes place. For instance, moving goods from a warehouse in Denmark to one in Germany requires an Intrastat report, even if the goods are not sold.
- Processing and repair transactions: When goods are sent to another EU country for processing or repair and then returned, both the initial shipment and the return must be reported. This involves detailed classification of the goods and the nature of the processing or repair performed.
- Return of goods: If goods are returned from a buyer in another EU country, this must be reported separately. The report should include the reason for the return, such as defective items or surplus stock, and the nature of the goods.
- Intra-company transfers: Businesses operating across multiple EU countries must report intra-company transfers. This includes the movement of goods between company branches across borders, whether they are finished products, raw materials, or components.
- Leasing, hire, and loan of goods: Goods that are leased, hired, or loaned across borders for more than 24 months must be reported, even though there is no change in ownership. The movement of these goods still needs to be documented.
- Transfers of ownership without physical movement: Changes in ownership without the physical movement of goods between countries must be reported if relevant to trade statistics. For example, the sale of goods stored in consignment stock in another EU country, where ownership is transferred without moving the goods physically, needs to be reported.

To meet Intrastat requirements in Denmark, it is crucial for businesses to accurately record and report all pertinent transactions. Detailed reporting is necessary for each type of transaction, which typically involves providing data on the value of the goods, their net weight, the nature of the transaction, and the country of origin or destination.

How Intrastat impacts trade within the European Union

For businesses involved in intra-EU trade, Intrastat data provides critical insights that go beyond simple regulatory compliance. By examining this information, companies can uncover trends and patterns in the flow of goods between EU countries, identifying high-demand products and spotting emerging market opportunities. This can inform strategic choices, such as concentrating sales efforts in regions with higher demand or setting up additional distribution centers.

Additionally, the data offers valuable support for strategic planning by clarifying market conditions and pinpointing potential growth areas. It also enables businesses to track how regulatory changes impact trade flows, allowing for adjustments in strategy in response to new policies. Utilizing Intrastat data empowers companies to make well-informed, data-driven decisions that strengthen their competitive edge and market presence within the EU.

Providing data crucial for the development of trade policies, planning transport infrastructure, and market assessment, Intrastat plays a vital role for both businesses engaged in intra-EU trade and regulatory authorities. This system helps track the movement of goods between EU countries, which is essential for identifying potential VAT fraud, ensuring the accuracy of trade statistics, and guiding policy decisions. Thus, Intrastat serves as a key instrument in maintaining a well-regulated and transparent trade environment.

Navigating Intrastat declarations

Details about goods trade are included in the Danish Intrastat declaration, which is necessary for reporting purposes. Additionally, submissions can be made through IDEP.web, where the Intrastat report can be filed alongside the European Sales Listing. Failure to meet these reporting obligations may result in penalties and other repercussions.

When intra-community transactions in Denmark exceed the threshold set by the Intrastat customs code, it is mandatory to submit a declaration. When the thresholds for intra-community arrivals or dispatches are exceeded during the year, a corresponding Intrastat declaration must be filed in the month in which the threshold was first exceeded.

In Denmark Intrastat declaration encompasses details such as the submission of Intrastat returns and their corresponding frequency and due dates.

Following the practice seen in many EU nations, Intrastat returns in Denmark are submitted on a monthly basis, aligned with the calendar month. The deadline for these returns is the 10th working day after the end of the reporting month. It is important to note that there are two distinct deadlines based on the size of the reporting entity:
- larger reporters (group 1) have an earlier deadline,
- smaller reporters (group 2) face a later deadline.

Businesses will receive notifications from the Danish authorities about their group classification through letters related to their Intrastat reporting duties.

Two primary components make up Intrastat declarations:
A. Arrivals (inward movements): Goods entering a particular EU member state from another EU Member State.
B. Dispatches (outward movements): Goods leaving a specific EU member state to another EU member state.

Neglecting to track the flow of arrivals (goods coming into Denmark from other EU countries) or dispatches (goods departing Denmark to other EU countries) could lead to penalties and fines. Accurate and timely submission of data is essential for businesses to meet Intrastat obligations and prevent such consequences.