What Is an ICP Declaration (EC Sales List - ECSL)?

What Is an ICP Declaration (EC Sales List - ECSL)?

An Intra-Community Transactions Declaration (ICP declaration), also known as the EC Sales List (ECSL), is a mandatory report that businesses in the Netherlands must file if they engage in intra-EU trade. It provides the Belastingdienst (Dutch Tax and Customs Administration) with details about goods or services supplied to VAT-registered customers in other EU countries.

What to Include in the Declaration

The ICP declaration includes:

1. Customer Details:

   • The VAT identification number of each business customer in another EU member state.

   
   

2. Transaction Information:

   • Total value (in euros) of goods or services supplied to each customer during the reporting period.

   
   

3. Type of Supply:

   • Indicate whether the transaction involves:

     • Goods

     • Services

     • Triangular trade arrangements

When and How to Submit the ICP Declaration

1. Frequency of Submission:

   • Monthly: If your intra-community supplies exceed a threshold set by the Belastingdienst.

   • Quarterly: Default reporting period for most businesses.

   
   

2. Submission Deadlines:

   • ICP declarations must be submitted by the same deadline as your VAT return. For example, for Q1 (January–March), the deadline is April 30th.

   
   

3. How to Submit:

   • Returns must be submitted digitally. The return can be filed by FinTaxNL Solutions. In some cases, you need eHerkenning.

Compliance Tips to Avoid Penalties

1. Ensure Accuracy:

   • Verify that VAT numbers for EU customers are valid using the VIES VAT Number Validation system.

   
   

2. Timely Submission:

   • Late submissions can result in fines. Align ICP declarations with VAT filing deadlines to streamline the process.

   
   

3. Maintain Detailed Records:

   • Keep invoices and records of all intra-EU transactions for at least 7 years as required by Dutch tax law.

   
   

4. Include All Transactions:

   • Ensure all applicable goods and services are reported to avoid discrepancies.

Why Is the ICP Declaration Important?

The ICP declaration ensures compliance with EU VAT rules, particularly regarding the zero VAT rate for intra-EU supplies. It allows tax authorities to cross-check declarations with those of customers in other EU states, preventing fraud and ensuring accurate VAT accounting.

Businesses engaging in intra-EU trade must treat ICP declarations as a critical part of their VAT compliance obligations to avoid penalties and maintain smooth operations.