EC Sales list

EC Sales list

Limited company registered for VAT is required to submit EC Sales list, the form VAT101 with HM Revenue and Customs (HMRC) if you make sales to VAT registered customers from the EU member states. The requirement came into effect from 1 January 2010.

You must include the following information in your EC sales list.

  • Every EU customer’s contact details
  • The value of sales
  • Your customer’s VAT registration number including the country code

You must check the VAT registration number given by your customer is valid and that they are actually based in the EU.

How often you have to submit your EC sales list with HMRC is dependent on your business supplies.

Your business suppliesYour sales valueSubmit EC Sales List
Goodsmore than £35,000 limit in the current or 4 previous quartersmonthly
GoodsLess than £35,000 in the current or 4 previous quartersquarterly
Services that are subject to the reverse charge in the customer’s countryN/AQuarterly or monthly
Goods and services where you are required to send monthly lists for your goodsN/Amonthly for all suppliers or goods
Quarterly for services

If you apply to HMRC to file your EC Sales list once a year if your business:

  • Yearly sales is less than £145,000
  • Yearly value of supplies to other EU countries is less than £11,000
  • Your sales exclude New Means of Transport

If you only supply goods with value not more than £11,000 and the supplies do not include New Means of Transport and your yearly sales is less than £93,500, you may apply to submit an annual EC Sales List.

You may submit your EC sales list online or by paper. If you do it online, you have 21 days to submit and if you do it by paper, you have 14 days to file it.

Register for VAT

Register for VAT

Your limited company may opt to register for VAT voluntarily or you wait until your company’s sales reach the VAT registration threshold.

If your company is likely to make sales of more than the VAT registration limit in the first year of trading you might choose to register for VAT straight away.

The law require your limited company to apply for a VAT number within one month of your company’s sales exceeding the VAT registration threshold.

Your company is required by law to have a proper accounting system in place to record your sales transactions and all business transactions.

Once your limited company is registered for VAT, your company would require to submit VAT returns with the VAT department of the HM Revenue and Customs within one month after at the end of your VAT return quarter.

If you require help to apply for your limited company’s VAT numbers with HM Revenue and Customs, our accountants would be more than happy to assist you. Our accountants would advice on how to record your VAT transactions for VAT compliance.

Check EU VAT number

Check EU VAT number

Businesses are encouraged to verify the Value Added Tax (VAT) registration numbers of their customers and suppliers on regular basis.

The UK VAT registration number is made up of 9 digits for example 111 2222 33. Your company’s VAT registration number is printed on your VAT registration certificate issued by HM Revenue and Customs (HMRC).

Your VAT registered company must submit VAT returns regularly with HMRC to avoid the VAT registration number being rendered invalid or cancelled. If you require help with preparation and filing of your quarterly VAT returns, our accountants will be more than happy to assist you.

Another reason to verify the VAT registration number is to ensure the VAT registration numbers are genuine and that you are not paying for VAT on your goods and services you bought or sold where you are obliged to.

Only VAT registered businesses are allowed to charge VAT on their sales to their customers.

If you paid for VAT on purchases to suppliers that do not have valid VAT numbers you will not be able to reclaim that VAT amount in your VAT return and HM Revenue and Customs would not issue the refund.

It is best that you check or verify the VAT number before you either remove it from your sale invoice for EC Customers or pay your suppliers who claimed they are VAT registered especially when the VAT amount involved is considerable. This is to avoid scamming and also create awareness and it is a good system to ensure everyone takes part to make sure VAT compliance function as it should be.

Verify VAT numbers – to see it is still valid?

UK limited company registered with VAT do not normally charge VAT to customers from European Countries who can provide valid TVA or VAT numbers.

Before you remove your VAT amount from your sales invoice, it is strongly recommended you verify the TVA or VAT numbers of your customers and note that number on your sales invoices.

Click here to verify – Your VAT or TVA numbers provided by your EC customers or suppliers.

Invalid VAT registration numbers

If VAT or TVA numbers appeared to be incorrect, please inform your customers or suppliers so they are aware and can contact their home country tax office or accountants to verify the situation.

If your customers are highlighting to you that your VAT numbers are invalid, contact your accountants as soon as possible if you have one to verify or you may contact HM Revenue and Customs VAT helpline. They will be able to advice you accordingly.

February 2019

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