If your company makes purchases or sales of goods within the European Union (EU), you may be required to file Intrastat reports.
This report is a legal requirementthat allows tax authorities to collect information on trade between member countries, ensuring transparency and compliance with regulations.
We know that managing Intrastat manually can be a tedious, error-prone and time-consuming process. Microsoft Dynamics 365 Business Central simplifies and automates this task, allowing you to generate reports quickly and accurately, without additional effort.
Here' s how Intrastat works in Business Central and how it can help your company.
What is Intrastat and why is it important?
Intrastat is the system by which companies trading goods between EU countries report these movements to the tax authorities. If your company exceeds certain import or export thresholds, you are obliged to submit this report periodically.
Data included in the Intrastat report
Each month, companies must provide detailed information on transactions within the EU, including:
- Country of origin and destination of goods
- Description and Commodity Code (Combined Nomenclature - CN)
- Quantity and value of assets
- Net weight and delivery conditions
- Type of transaction
If your company does not file Intrastat correctly or does so with errors, you may face penalties or audits by the tax authorities.
How does Intrastat work in Business Central?
Microsoft Dynamics 365 Business Central automates the collection and generation of Intrastat reports, saving you time and ensuring that data is accurate and compliant with current regulations.
1️⃣ Initial Configuration
Before starting to generate reports, some parameters must be set in the system:
✔ Define whether the company is required to report Intrastat (according to country thresholds).
✔ Configure country and region codes to correctly identify the origin and destination of goods.
✔ Assign transaction codes describing the nature of the movement (purchase, sale, return, etc.).
✔ Associate commodity codes (NC) to the products traded by the company.
Example:
Imagine that your company in Spain sells electronic components to a customer in Germany. Before generating reports, you need to make sure that the products have been assigned an appropriate CN code and that the transaction is set up correctly in Business Central.
2️⃣ Automatic Movement Registration
Every time you generate a purchase or sales invoice, Business Central analyzes whether the transaction should be included in the Intrastat report.
A transaction is considered relevant for Intrastat if it meets these criteria:
✔ It is a transaction in goods (not services).
✔ It involves two EU countries.
✔ It exceeds the reporting thresholds established in the country.
Example:
If you issue an invoice for €5,000 in electronic components to a company in Germany, Business Central automatically registers it:
-Country of destination (Germany - DE)
-Commodity code (8542 - Electronic circuits)
-Number of units shipped
-Total weight of goods
-Transaction value
This means that, at the end of the month, the data will already be organized for the generation of the report, without the need to collect it manually.
3️⃣ Generation of the Intrastat Report
At the end of each reporting period (usually monthly), Business Central allows you to:
✔ Generate the report automatically with the transactions recorded.
✔ Review and modify data if necessary.
✔ Export the report in the format required by the corresponding tax authority.
Example:
Your company has made 15 shipments to different customers in the EU during February. Instead of reviewing each transaction manually, you just need to:
1. Go to the Intrastat section in Business Central.
2. Click on "Generate Report" and select the period (February 2025).
3. Review the information and make adjustments if necessary.
4. Export the file and send it to the tax authority in the required format.
Thus, in just a few steps, the report is ready without the need for manual tasks or additional calculations.
4️⃣ Data Correction and Adjustment
If you detect any errors in the report, Business Central allows you to make modifications before resubmitting the report.
Example:
If you forget to record the weight of a transaction, you can correct the data in the system and generate a new version of the report, ensuring that everything is in order before submission.
Benefits of Using Business Central for Intrastat
Automation and accuracy: The system records and organizes information without manual intervention.
✅ Time savings: Repetitive tasks and manual calculations are eliminated.
✅ Error reduction: Integrated validations avoid data discrepancies.
✅ Regulatory compliance: Business Central generates the report in the required format, ensuring that it complies with the tax regulations of each country.
✅ Simplified management: The entire process is handled from a single system, without the need for external tools.
Conclusion: Facilitates Intrastat Management with Business Central
If your company trades within the European Union, Microsoft Dynamics 365 Business Central is the ideal solution to manage Intrastat reports efficiently.
With an automated, hassle-free process, you can ensure compliance without spending extra time or risking filing errors.
