Check the ICP declaration
ICP (Intracommunautaire Prestatie) refers to the situation in which your company supplies goods or services to a buyer in another EU country that is liable for VAT. You already register these ICP transactions in Profit before the VAT declaration, but you must also submit an ICP declaration.
Description
You automatically register intra-community supplies (goods and services) on the invoice via VAT codes.
You need not charge any VAT on these goods. This is what is known as the 'zero rate'. You can only use the zero rate if you meet the following conditions:
- The goods supplied by you have actually left the Netherlands.
- The foreign purchaser has a VAT number. This number must be stated on the invoice.
Using the turnover amounts that are registered per VAT code, you create the ICP declaration at the same time as the VAT declaration. In addition, goods that you transfer to another country within the EU are also included in the ICP declaration.
Example:
A Dutch veterinarian treats the animals of a farmer in Belgium. For a Belgian farmer, he charges 0% VAT on the invoice. The Belgian farmer must calculate the Belgian VAT himself and pay it to the Belgian tax authority. The Dutch veterinarian must record the turnover on the VAT declaration and in the ICP declaration.
The VAT sections used for the ICP declaration are in the section Door mij verrichte leveringen binnen de EU. Per VAT section, Profit has linked default VAT codes. You may have deviated from this setup.
There also are some very specific transactions for which no invoice is used and that therefore would not end up in the VAT/ICP declaration. For example, repairs of goods abroad. You record these types of transactions manually in an ICP register.
If you are liable to VAT, you periodically submit a VAT declaration. Profit generates the ICP declaration automatically, at the same time as the VAT declaration. If you submit monthly VAT declarations, you also see an ICP declaration every month. It is allowed to deviate from this under certain conditions. If you submit monthly VAT declarations and quarterly ICP declarations, Profit will generate an ICP declaration together with every third VAT declaration. If you have not posted any entries to a VAT code for intra-community deliveries, the automatically generated ICP declaration will be empty.
In the case of a VAT declaration for a Fiscal Unit, you can follow a different procedure for making an ICP declaration.