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A new regulation makes clear that HMRC may use for VAT purposes the data already collected for Intrastat purposes.
The new regulation will not require businesses to provide any additional information.
Although it applies to businesses which supply or acquire EC goods over the (current) annual threshold of £260,000 (net of VAT and excise duty) and which are therefore required to submit monthly 'Intrastat declarations', these businesses need take no action as a result of the change in the law, which comes into effect on 1 April 2008.
HMRC confirm that no action is required over and above that already needed to submit Intrastat declarations.
As of 1 April 2008, the data as provided on Intrastat declarations will be provided for both Intrastat and VAT purposes.
Affected businesses are therefore still required to provide the information once only, in the same format and at no additional cost.
They will not be required to store a second copy of the declaration in their VAT records.
New Intrastat forms which make clear the dual purpose of the data in an amended heading to the form will be available shortly.
Although any breach of the new VAT regulation will in principle become subject to a potential penalty under VAT provisions already in place, the VAT penalty provision does not apply where a person is convicted of an offence in relation to Intrastat.
Accordingly, affected taxpayers cannot, once the new VAT regulation is in place, become liable to two penalties, under both VAT and Intrastat regimes for failing to submit the Intrastat declaration (or for completing it inaccurately).
