With the upcoming changes in the place of supply rules for VAT tax in Europe, the EC Sales List (ESL) requirements are also changing.
Today, the ESL is only used to report goods transactions shipped from one European Union Member State to another (so called dispatch) or received (so called acquisition).
In 2010, certain intra-EC supplies of services need to be included as well.
The requirements include that the services are:
- supplied to VAT registered businesses;
- taxable under the reverse charge arrangements according to the rules in the customer’s country.
The ESL is not required for services in respect of supplies which are exempt according to the rules in the customer’s country or where the customer is not VAT registered. It is up to the provider of the services to make this assessment whether or not the services need to be reported on the ESL.
The following information is needed on the new ESL and will have to be incorporated in your Tax Automation process or Global Tax Management system:
- customer’s country code
- customer’s VAT registration number
- value (in local currency) of goods and related costs
- value (in local currency) of taxable reverse charge supplies of services
- an indicator code to separate the services from goods
In most Member States, the ESL needs to be submitted per quarter. However, some require it per month. More and more countries are also allowing businesses to file the ESL electronically.