Intrastat report in Denmark

Intrastat report in Denmark

Intrastat provides information on Denmark’s trade in goods (both imports and exports) with other EU countries, highlighting the progress of the EU internal market. This data is crucial for compiling the Balance of Payments and National Accounts statistics and is also utilized by ministries for shaping trade policies and initiating trade agreements. As a result, there are stringent quality standards for this data.

A business involved in international trade within the European Union may need to comply with Intrastat requirements in addition to filing periodic VAT returns and/or European Sales Listings (ESL). The business must declare the arrivals of goods from other EU member states and/or the dispatches of goods to other EU member states if its transactions surpass a specified threshold amount. If you want to know more about Intrastat reporting in Denmark, we are here to help.

What is Intrastat?

Intrastat has been in operation since January 1,1993, replacing customs declarations as the source of trade statistics within the EU. Intrastat is a statistical system for businesses engaged in EU trade, designed to track the movement of goods and compile foreign trade statistics. These statistics are vital for trade policy and sectoral analysis. Businesses are required to submit Intrastat declarations detailing the arrivals and dispatches of goods between EU member states.

The Intrastat page allows you to generate and report information about trade between European Union (EU) countries/regions. The Danish Intrastat declaration includes details about goods trade for reporting purposes. It is also possible to submit a Danish Intrastat report along with the European Sales Listing via IDEP.web. Non-compliance with these reporting requirements may lead to penalties and other consequences.

Intrastat data requirements differ by country and depend on the reporting thresholds established by each EU member state. These thresholds specify the value of goods that must be reported in Intrastat declarations and can change over time. Businesses must stay updated on these thresholds and submit accurate data to ensure compliance with Intrastat reporting requirements.

Commodity codes are crucial for Intrastat declarations in Denmark, classifying goods with an 8-digit system for the EU's external and intra-EU trade statistics. The Combined Nomenclature (CN) classification system undergoes annual revisions to ensure accurate and current classification of goods, including supplementary units when needed.

Intrastat Declaration in Denmark

Reporting to Intrastat in Denmark requires that information to be submitted monthly, with a deadline on the 10th working day after the end of the reporting month. However, there are two different deadlines: an earlier deadline for larger reporters (Group 1) and a later deadline for smaller reporters (Group 2). The Danish authorities will notify businesses of their group classification in the letters regarding their Intrastat reporting obligations.

The Danish Intrastat Declaration includes the following fields:

• Intrastat returns in Denmark,
• frequency and due date of Intrastat returns in Denmark.

Similar to most EU countries, Danish Intrastat returns are filed monthly, corresponding to the calendar month.

Danish reporting to Intrastat consist of two main components:

• Arrivals (inward movements): Goods brought into a specific EU member state from another EU member state.
• Dispatches (outward movements): Goods sent from a specific EU member state to another EU member state.

Submitting accurate and timely data enables businesses to comply with Intrastat requirements in Denmark and avoid penalties.

Danish Intrastat Declarations is required when intra-community transactions surpass the threshold established by the Intrastat customs code. If the thresholds for intra-community arrivals or dispatches are exceeded during the year, an Intrastat Declaration must be filed in the month when the threshold was reached. Failure to monitor developments in arrivals (goods flowing from an EU member state to Denmark) or dispatches (goods flowing from Denmark to another EU member state) can result in penalties and fines.

These declarations, which have significant statistical value, are submitted to national statistical bureaus and are typically completed monthly, alongside the VAT return.

Export and import in Danish Intrastat report

Importers are required to submit a separate entry for each type of goods (identified by an item code) imported in the reference month, provided the transaction type and partner country within the EU, including Northern Ireland, are the same.

Exporters, on the other hand, must categorize item entries based on the country of origin of the goods and the recipient's VAT number. Reporting to Intrastat in Denmark is mandatory if a company's trade in goods with other EU countries and Northern Ireland surpasses specific thresholds. It's important to note that this requirement applies not just to large corporations but to any business that engages in cross-border trade and exceeds the specified thresholds, ensuring that smaller businesses are equally responsible for contributing to trade data.

In 2024, companies are required to report to Intrastat Export if:

• Their total goods export to other EU countries and Northern Ireland exceeded 11.3 million DKK in 2023.
• Their goods export to other EU countries and Northern Ireland exceed 11.3 million DKK during 2024.

Similarly, companies must report to Intrastat Import in 2024 if:

• Their total goods import from other EU countries and Northern Ireland exceeded 41 million DKK in 2023.
• Their goods import from other EU countries and Northern Ireland exceed 41 million DKK during 2024.

In the Intrastat system, it is verified whether all enterprises required to report data have fulfilled their obligation. If any enterprise fails to comply, a written reminder is sent, and they may be charged a handling fee.

In the context of Danish Intrastat reporting, it's essential to understand that the system covers a broad range of transactions, not just the straightforward import and export of goods. Companies are required to report various types of transactions, each with specific reporting requirements to ensure accurate statistical data.
- Physical movement of goods: This is the most common type of transaction reported in Intrastat. It includes the physical movement of goods between Denmark and other EU countries, including Northern Ireland, regardless of whether a sale occurs. For instance, transferring goods from a warehouse in Denmark to another warehouse in Germany would require an Intrastat report, even if the goods are not sold.
- Transfers of ownership without physical movement: In some cases, ownership of goods may change without the goods physically moving between countries. These transactions must also be reported if they are relevant to trade statistics. An example could be the sale of goods stored in a consignment stock in another EU country where the ownership transfers without immediate physical relocation.
- Processing and repair transactions: If goods are sent to another EU country for processing or repair and then returned, these transactions should be reported under Intrastat. The initial shipment and the return shipment are both reportable, often requiring detailed classification of the goods and the nature of the processing or repair.
- Intra-company transfers: For businesses operating across multiple EU countries, intra-company transfers—such as moving goods from one branch of the company to another across borders—must also be reported. This includes not only finished goods but also raw materials and components.
- Leasing, hire, and loan of goods: If goods are leased, hired, or loaned across borders for a period exceeding 24 months, these transactions fall under the Intrastat reporting requirements. Even though there's no change in ownership, the movement of goods must still be documented.
- Return of goods: When goods are returned from a buyer in another EU country, this transaction must be reported separately. The reason for the return (e.g., defective goods, surplus stock) and the nature of the goods will determine how the return is reported.

Each of these transaction types requires detailed reporting, often including information such as the value of the goods, the net mass, the nature of the transaction, and the country of origin or destination. Businesses must ensure that all relevant transactions are accurately captured and reported to meet their Intrastat obligations.

Intrastat thresholds in Denmark

Thresholds are calculated annually based on the calendar year. Once a company starts filing, they must continue for a full calendar year before they can stop. For instance, if a company exceeds the threshold for arrivals in March 2024, it must file Danish Intrastat returns for arrivals until December 2025. These thresholds are determined based on the invoice value. Authorities monitor these thresholds and frequently send letters to taxpayers requiring them to file any missing Intrastat returns.

As of January 1, 2024, Denmark has increased its Intrastat reporting thresholds to the following levels:

• Arrivals: DKK 22 million (approximately €3 million), up from DKK 13 million.
• Dispatches: DKK 11 million (approximately €1.5 million), up from DKK 10 million.

The Danish Intrastat electronic reporting form requires data such as: goods description, commodity code, delivery terms, mode of transport, countries of destination and origin, weight and/or quantity, and invoice value.

Intrastat includes two key statistical thresholds: the basic threshold and the detailed threshold. The detailed threshold applies to significantly higher transaction values compared to the basic threshold.

The key distinction between the two thresholds is the amount of data required. When traders surpass the basic threshold but not the detailed one, they must submit a Danish Intrastat reporting declaration with a reduced dataset.

The importance of Intrastat in European Union Trade

Companies established or registered in a European Union member state that engage in intra-community exchanges, either arrivals or dispatches, must submit an Intrastat reporting if they have reached the current thresholds in that specific country. This applies to the volume of purchases or sales transactions conducted within the EU's internal market.

Intrastat is essential for providing data to government departments to develop trade policies, plan transport infrastructure, and assess markets. By gathering information on the movement of goods between EU countries, Intrastat aids in detecting potential VAT fraud, maintaining accurate trade statistics, and informing policy decisions.

Intrastat data is invaluable for businesses engaged in intra-EU trade, offering insights that extend beyond regulatory compliance. Analyzing this data helps companies identify trends and patterns in the movement of goods between EU countries, revealing which products are in high demand and highlighting emerging market opportunities. This information can guide strategic decisions, such as focusing sales efforts on high-demand regions or establishing new distribution centers.

Moreover, the data supports strategic decision-making by offering a clear view of market conditions and potential areas for growth. It can also help businesses monitor the impact of regulatory changes on trade flows, enabling them to adapt their strategies in response to new policies. Overall, leveraging Intrastat data allows companies to make informed, data-driven decisions that enhance their market presence and competitive position in the EU.

This makes Intrastat in Denmark an essential tool for businesses involved in intra-EU trade and for the authorities responsible for regulating it.