Filing zero VAT returns is mandatory in many countries. This is particularly important for entrepreneurs in the e-commerce sector who hold foreign VAT numbers, as there may be months when […]
Read in: 4 minEC Sales List (ECSL) – Key Information
- Last update: 09.12.2024
- Published: 01.10.2024
- Read in: 5 min
Taxpayers conducting transactions with partners from other European Union (EU) countries must be registered for EU VAT. This registration obligates them to submit specific declarations, commonly referred to as EC Sales List, ECSL, or ESL declarations.
If you’re looking for information on this topic and wish to understand what this declaration entails, when to submit it, how to do so, and what details it must include, this article provides a comprehensive overview.
What is the EC Sales List?
The EC Sales List, also known as the ESL declaration, is a document that businesses must submit when selling goods or providing services from one EU member state to VAT-registered taxpayers in another EU country. In Poland, this document corresponds to the VAT EU declaration.
What transactions are reported in the EC Sales List?
The EC Sales List includes transactions between EU taxpayers, such as:
- Intra-Community supplies of goods (ICS): Goods sold and transported between EU member states.
- Intra-Community acquisitions of goods (ICA): Goods purchased and brought from another EU member state.
- Simplified triangular transactions: For chain transactions where goods are transported directly from the supplier to the final buyer.
- Export of services.
- Movement of goods under the call-off stock procedure.
For more detailed information on these transactions, see:
- What is an Intra-Community Supply of Goods (ICS)?
- What does the term “call-off stock” mean on Amazon?
ESPL – Sales and Purchase Lists
In some countries, legislation requires businesses to report not only sales but also their purchases. This is known as the EC Sales and Purchase List (ESPL). Examples of countries with such requirements include Poland, Hungary, and Spain.
What is the purpose of the EC Sales List?
The purpose of the EC Sales List is to verify that the declared VAT amount from cross-border transactions and reverse charge mechanisms is accurate. These declarations help tax authorities monitor and validate cross-border transactions within the EU by providing essential transaction details.
What information must the EC Sales List contain?
The EC Sales List must include details about each transaction between EU-based partners, such as:
- The client’s name and VAT number.
- The country where the goods or services are delivered.
- The value of the supplied goods or services.
When should the EC Sales List be submitted?
The submission of the EC Sales List depends on the requirements of the country where it is filed. Generally, the reporting period is monthly (e.g., in Poland, France, Germany, Slovakia, and the Czech Republic), but quarterly (e.g., Italy, Spain) or annual reporting may also apply.
To ensure timely submission, consult a tax advisor. Like VAT declarations, timely submission is crucial to avoid financial penalties for delays or omissions.
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Schedule a consultationEC Sales List and the United Kingdom
Before Brexit, UK businesses were required to submit EC Sales Lists. However, since January 1, 2021, this obligation no longer applies. Businesses that did not file their ESL declarations for periods before this date had until January 21, 2021, to do so.
Exception: Businesses selling goods from Northern Ireland must still submit EC Sales Lists for goods transactions. This is due to the Northern Ireland Protocol, which keeps Northern Ireland under certain EU VAT regulations for goods. This requirement does not apply to services.
EC Sales List vs. Intrastat
It’s essential not to confuse the EC Sales List with Intrastat declarations.
- Intrastat: Required when import/export thresholds for goods movement are exceeded. Thresholds differ per country and are regularly updated. Intrastat serves statistical purposes, while the EC Sales List is typically submitted from the first intra-Community B2B transaction.
- EC Sales List: Tracks B2B goods and service sales across the EU.
Intrastat requires more detailed information, such as Incoterms, quantities, and product codes, and applies exclusively to goods movement. Services must be reported on the EC Sales List.
Additionally, Intrastat must be submitted monthly, whereas EC Sales List reporting frequency can vary (monthly, quarterly, or annually).
If you want to learn more about Intrastat, we encourage you to check out our articles – What is Intrastat? and Intrastat Thresholds 2024.
EC Sales List Summary
The EC Sales List is a critical document for businesses engaged in intra-EU transactions. Its purpose is to help tax authorities monitor the flow of goods and services within the EU and ensure compliance with VAT regulations. While reporting requirements may vary between countries, the basic principles concerning deadlines and content are consistent.
Late or incorrect submissions can lead to financial penalties, emphasizing the importance of accuracy and timeliness. Understanding the differences between ESL and Intrastat declarations is crucial to avoid reporting errors.
Proper understanding and application of EC Sales List regulations are vital for effectively conducting business in the EU’s internal market. If you have any doubts regarding VAT EU declarations or Intrastat, consulting a tax expert is highly recommended. If you need support with VAT, VAT OSS, or e-commerce accounting, we’re here to help. Schedule a consultation and let our specialists take care of the rest!
