Danish Intrastat

If a company engages in international trade within the European Union, it may be required to meet Intrastat obligations, in addition to submitting regular VAT returns or European Sales Listings (ESL). Once its transactions exceed a certain threshold, the business is obligated to report the arrival of goods from other EU countries and/or the dispatch of goods to them.

Intrastat offers valuable insights into Denmark's trade activities with other EU nations, covering both imports and exports, and reflecting the development of the EU internal market. This information plays a key role in generating statistics for the Balance of Payments and National Accounts and is also instrumental for ministries in formulating trade policies and negotiating agreements. Due to its importance, strict quality standards are applied to this data. If you need further details on Intrastat reporting in Denmark, we are available to assist you.

An introduction to Intrastat

Businesses engaged in trade within the EU use a statistical system to track goods movement and generate foreign trade statistics, known as Intrastat. These statistics are crucial for developing trade policies and conducting sectoral analyses.

Since replacing customs declarations on January 1, 1993, Intrastat has been the primary source of trade statistics within the EU. In Denmark, the Intrastat declaration requires the reporting of specific details related to goods trade.

Every month, member states send their data to Eurostat, usually within a 40-day timeframe. Prior to this submission, national authorities collect the following information:

• the identification number assigned to the reporting entity,
• the reference period,
• the nature of the flow (incoming or outgoing),
• the category of goods,
• the value of the goods,
• the quantity of the goods,
• the partner member state,
• the type of transaction.
  
  

In Denmark, commodity codes play a vital role in Intrastat declarations, using an 8-digit system to classify goods for both external and intra-EU trade statistics. The Combined Nomenclature (CN) classification system is revised annually to maintain accurate and up-to-date categorization of goods, which includes supplementary units as necessary.

Companies are obligated to submit Intrastat declarations that detail the arrivals and dispatches of goods between EU member states. The Intrastat page provides a platform for generating and reporting trade data related to European Union (EU) countries and regions. Furthermore, it is possible to file a Danish Intrastat report along with the European Sales Listing via IDEP.web. Non-compliance with these reporting obligations may result in penalties and other consequences.

The key role of Intrastat in facilitating EU trade

Essential for supplying data to government departments, Intrastat supports the development of trade policies, transportation infrastructure planning, and market assessments. By collecting information on the movement of goods among EU countries, it helps identify potential VAT fraud, ensures the accuracy of trade statistics, and informs policy decisions.

Firms that are registered or established in a European Union member state and participate in intra-community exchanges, whether through arrivals or dispatches, are obligated to file an Intrastat report if they exceed the specified thresholds in that country. This requirement pertains to the volume of sales or purchase transactions executed within the internal market of the EU.

For businesses involved in intra-EU trade, Intrastat data is highly valuable, providing insights that go beyond mere regulatory compliance. By analyzing this information, companies can discern trends and patterns in the movement of goods among EU countries, indicating which products are in high demand and uncovering emerging market opportunities. Such insights can inform strategic decisions, such as targeting sales efforts towards high-demand areas or setting up new distribution centers.

Furthermore, this data aids in strategic decision-making by providing a clear understanding of market conditions and identifying potential growth areas. It enables businesses to track the effects of regulatory changes on trade flows, allowing them to adjust their strategies in response to new policies. In summary, utilizing Intrastat data empowers companies to make informed, data-driven decisions that strengthen their market presence and competitive advantage within the EU.

Intrastat reporting requirements in Denmark

The Danish Intrastat Declaration encompasses the following fields: Intrastat returns in Denmark, as well as the frequency and due date for these returns.

In line with most EU countries, Intrastat returns in Denmark are submitted on a monthly basis, reflecting the calendar month. Reporting to Intrastat requires that information be provided monthly, with a deadline set for the 10th working day following the end of the reporting month. There are, however, two distinct deadlines: one for larger reporters (Group 1) and another for smaller reporters (Group 2).

Businesses will be informed of their group classification through letters regarding their Intrastat reporting obligations sent by the Danish authorities.

Intrastat declarations mandate that businesses submit both statistical and fiscal data, including:

• member state,
• commodity code,
• invoice value,
• additional information.
  
  

Danish reporting for Intrastat involves two primary components:

1. Arrivals (inward movements): Goods received from another EU member state into a specific EU country.
2. Dispatches (outward movements): Goods sent from a particular EU member state to another EU member state.
   
   

Providing accurate and timely data is essential for businesses to comply with Intrastat requirements in Denmark and to avoid facing penalties.

Intrastat reporting limits in Denmark

Data requirements for Intrastat vary by country and are influenced by the reporting thresholds set by each EU member state. These thresholds indicate the value of goods that must be included in Intrastat declarations and may change over time. To ensure compliance with Intrastat reporting obligations, businesses need to remain informed about these thresholds and submit accurate data.

Annually calculated thresholds rely on the calendar year. A company that begins filing must maintain this practice for an entire calendar year before it can discontinue reporting. For example, if a business surpasses the threshold for arrivals in March 2024, it is obligated to submit Danish Intrastat returns for arrivals through December 2025. The invoice value determines these thresholds. Authorities keep a close watch on them and often issue letters to taxpayers, reminding them to file any overdue Intrastat returns.

The electronic reporting form for Danish Intrastat necessitates information including the description of goods, commodity code, delivery terms, mode of transport, countries of origin and destination, weight and/or quantity, as well as the invoice value.

Filing a Danish Intrastat Declaration is mandatory when intra-community transactions exceed the thresholds set by the Intrastat customs code. If the thresholds for either intra-community arrivals or dispatches are surpassed during the year, an Intrastat Declaration must be submitted in the month the threshold is exceeded. Neglecting to keep track of arrivals (goods coming from an EU member state to Denmark) or dispatches (goods leaving Denmark for another EU member state) may lead to penalties and fines.

Starting January 1, 2024, Denmark has raised its Intrastat reporting thresholds to the following amounts:

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

Intrastat comprises two main statistical thresholds: the basic threshold and the detailed threshold. The detailed threshold pertains to much higher transaction values than the basic threshold. The primary difference between these thresholds lies in the amount of data that must be submitted. When traders exceed the basic threshold but do not reach the detailed one, they are required to file a Danish Intrastat reporting declaration with a reduced dataset.

Reporting exports and imports in Danish Intrastat

In Denmark, submitting reports to Intrastat becomes mandatory when a company’s trade in goods with other EU countries and Northern Ireland exceeds certain thresholds. It is essential to recognize that this obligation is not limited to large corporations; any business participating in cross-border trade and surpassing the specified thresholds is required to comply, ensuring that smaller enterprises also contribute to the trade data.

Importers must provide a distinct entry for each type of goods (identified by an item code) imported during the reference month, as long as the transaction type and partner country within the EU, including Northern Ireland, remain the same. In contrast, exporters are required to classify item entries according to the country of origin of the goods and the VAT number of the recipient.

In 2024, companies must report to Intrastat for imports if:

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

In 2024, companies are required to report to Intrastat for exports if:

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

When it comes to Danish Intrastat reporting, it's important to recognize that the system encompasses a wide array of transactions beyond the simple import and export of goods. Companies must report various transaction types, each with specific reporting requirements to ensure the accuracy of statistical data.

• Return of goods: If goods are returned by a buyer from another EU country, this transaction must be reported separately. The reason for the return (such as defective goods or surplus stock) and the nature of the goods will dictate how the return is recorded.
• Processing and repair transactions: Transactions involving goods sent to another EU country for processing or repair, followed by their return, should also be reported under Intrastat. Both the initial shipment and the return shipment must be documented, often requiring detailed classification of the goods and the specifics of the processing or repair.
• Intra-company transfers: For businesses operating in multiple EU countries, intra-company transfers—such as relocating goods from one branch to another across borders— must be reported. This includes finished goods as well as raw materials and components.
• Leasing, hire, and loan of goods: Transactions involving the leasing, hiring, or loaning of goods across borders for a period exceeding 24 months fall under Intrastat reporting requirements. Even without a change in ownership, the movement of goods must be documented.
• Physical movement of goods: This represents the most common type of transaction reported in Intrastat. It includes the physical transfer of goods between Denmark and other EU countries, including Northern Ireland, regardless of whether a sale occurs. For example, transferring goods from a warehouse in Denmark to another warehouse in Germany would necessitate an Intrastat report, even if the goods are not sold.
• Transfers of ownership without physical movement: In certain situations, ownership of goods may change without any physical movement between countries. Such transactions must also be reported if they impact trade statistics. An example could be the sale of goods stored in consignment stock in another EU country, where the ownership transfers without an immediate physical relocation of the goods.
  
  

Detailed reporting is necessary for each of these transaction types, typically requiring information like the value of the goods, net mass, transaction nature, and the country of origin or destination. To fulfill their Intrastat obligations, businesses must accurately capture and report all relevant transactions.

The Intrastat system includes a verification process to ensure that all enterprises obligated to report data have met their requirements. If an enterprise does not comply, a written reminder is issued, and a handling fee may be imposed.