What is an EC Sales List?
EC Sales Lists are used when reporting the VAT on sales to the EU.
The EC Sales List contains information on sales and transfers of goods and services to VAT registered companies in other EU countries, with EC standing for European Commission.
EC Sales are reported by the calendar period and done on an accrual basis. The EC Sales List (ESL) is therefore usually filed monthly or quarterly.
The EC Sales List is used by tax offices in the EU to confirm the correct amount of VAT is being paid and declared by all involved parties.
What should I include in an EC Sales List?
Your EC List should contain:
- Details about your EU customer(s)
- The value of goods and services you’ve supplied, in sterling
- Your customer’s country code
When should I complete an EC Sales List?
You’ll need to complete an EC Sales List when:
- You supply goods to VAT-registered business in other EC countries, even if you haven’t invoiced them (unless they’re samples for VAT purposes).
- You provide a VAT-registered business in another EC country with a credit note for goods, even if they weren’t provided in the same period.
- You supply services to a VAT-registered EU business and they account for the VAT (also called reverse charge).
- You move your own goods to a VAT-registered branch, office or subsidiary of your own company that operate in another EC country.
- You sell goods to a VAT-registered EU business in one country and arrange for a supplier to send them directly (called triangulation).
You’ll automatically get an EC Sales List form if you fill in box 8 of your VAT Return.
VAT on European Sales
You’ll use an EC list on both goods and services, and you’ll need to record your EC Sales with the correct rate of VAT.
If your customer is VAT registered in another European Commission State, then you should have a record of their VAT number.
You’ll have to make sure the VAT numbers for both companies are registered with the VAT Information Exchange System (VIES) for your ES Sales List to be valid.
Using a simplified ESL
A simplified ESL only needs to be sent once a year, by a date you’ll agree with HMRC. You’ll also only have to enter the nominal value of £1 as the value of your supplies to each customer – you won’t have to enter the actual value.
If you meet the following criteria, you can apply to submit a simplified ESL:
- Your total annual taxable turnover in below sum of the VAT registration threshold plus £25,500.
- Your supplies to EU customers are less than £11,000 a year.
- Your sales don’t include New Means of Transport, as specified by HMRC.
When should I send an EC Sales List?
You’ll have to send your EC List monthly if…
- The value of your goods is over the £35,000 threshold in the current or previous 4 quarters.
- The goods or supplies you provide require you to send monthly lists.
You’ll have to send your EC List quarterly if…
- The value of your goods is under the £35,000 threshold in the current or previous 4 quarters.
- The services you provide require you to send monthly lists.
- The services you provide are subject to the reverse charge in the customer’s country.
Sending EC Lists in KashFlow
You can run the EC Sales List report in just a couple of clicks in KashFlow’s Accounting Software. To find out how, visit our Knowledge Base article: https://www.kashflow.com/support/kb/ec-sales-list/