EC Sales List (ECSL) for services supplied to other EU member states
As of 1 January 2010, the requirement to report to HMRC the value of sales to other EU member states was extended to include services whereas it previously only applied to the sale of goods.
The ECSL rules applies to all VAT-registered businesses in the UK who supply goods and/or services to a VAT-registered customer in another EU country.
The ECSL is a statistical return, usually submitted quarterly, used by the UK government to prepare intra-EU sales figures.
It is also used by the tax authorities in other EU countries to check that the businesses on your ECSL are dealing with the VAT correctly.
Services include affiliate marketing commissions
Affiliate marketing and other advertising commissions received from EC networks (eg Amazon, Google Adsense and Cleverbridge etc) are services for VAT purposes. Such income is out of scope for UK VAT and the VAT is accounted for by the network to their own tax authority under the "Reverse Charge" rules.
Do not include the value of services to other EC member states in box 8 or 9 of your VAT return as these boxes are only for goods and associated services (i.e delivery).
What you need to include on the ECSL
The ECSL shows, for each customer:
- Country code
- VAT number
- Total sales value for the quarter (in £ )
How and when to submit the ECSL
The ECSL can be submitted either online, or on paper and only needs to be submitted if there are relevant sales in the period. i.e. a NIL return is not required.
The deadlines for submitting the ECSL to HMRC are :
- Online – 21 days from the end of the reporting period
- Paper – 14 days from the end of the reporting period
If you send the ECSL in late, you may have to pay a penalty.
How to submit your ECSL online
To submit your ECSL online to HMRC, you will first have to enrol on the Government Gateway at www.gateway.gov.uk and sign up for EC Sales Lists (use Branch Identifier =”000″). HMRC will send you a code to activate the service (the code expires after 28 days).
After you have activated the service, you can submit your ECSL online by logging into VAT Online at http://www.hmrc.gov.uk.