EC sales lists
The EC sales list (ESL) form generates no payment or repayment of VAT for your business – it is merely a statistical return required by the Government. But don’t ignore it, as you could end up with penalties.
You must complete an ESL if your business is VAT registered and sells goods or services into other EU countries. If you only sell services into other countries and not goods, HMRC will not send you an ESL form, but you still need to complete one.
Most businesses have to do this for every calendar quarter (ending 31 March etc.), which may not align with your VAT quarters. The deadline for submission is 14 days from the end of the quarter for a paper ESL, or 21 days for an electronic version.
If you submit annual VAT returns you can ask for permission to submit an annual ESL, but your turnover must be below £145,000, with EU despatches of less than £11,000. Businesses which despatch goods worth more than £35,000 per quarter must submit an ESL every month rather than quarterly.
In the past HMRC has ignored late submissions of the ESL, as long as the form arrived within ten days of the submission deadline. However, penalties can be imposed at a rate of £5 to £15 per day, for up to 100 days. The amount rises each time a late filing penalty is applied.
We are seeing HMRC impose these penalties more frequently, so don’t ignore your ESL obligations. We can help you submit the ESL online or on paper.