DEFINITION OF THE EUROPEAN SERVICES DECLARATION
The European Services Declaration (DES) has been a requirement since January 2010 for French businesses supplying services to companies based in other member countries of the European Union. The European Services Declaration lists all transactions conducted and must be filed with the Department of Customs so that it can audit VAT taxation on the provision of intra-community services.
EUROPEAN SERVICES DECLARATION: KEY FACTS
Currently, when a French company subject to VAT provides intra-community services, it must complete a European Services Declaration (DES). Unlike the Trade of Goods Declaration (DEB), there is no minimum amount up to which the DES is not required: when the service provided is intra-community in nature, a DES must be prepared from the first euro.
The customs authority is responsible for the technical side of the European Services Declaration (for example, online filing), while the Public Finances Directorate General (DGFiP) handles all regulatory matters (for example, assistance for online tax filers, the nature and place of the provision of the services concerned, guidance, the concept of a taxable person or entity, place of business and permanent establishment, etc.).
Any company engaged in intra-community service provision is required to complete a European Services Declaration (DES), excluding the following services:
Services related to an immovable property
Passenger transport services
Services related to the organization of cultural, sporting, artistic, educational, scientific, entertainment or similar events, fairs and exhibitions
Sales for immediate consumption
Short-term transport hire
Services automatically exempted in the member country of the customer.
A monthly declaration is required within 10 working days of the month following that in which the VAT is due in the other member state for the service provided. As in the case of the DEB, a DES must be filed using the teleservice accessible at the website pro.douane.gouv.fr, where declarations can also be archived and which offers a simulation module.
Fines will be imposed in the event of failure to produce the declaration within the DES time limit, (from 750 € to 1,500 €), or in the case of omissions or inaccuracies, (15 € per error, up to a maximum of 1,500 €), or of non-compliance with the online filing procedures.
THE EUROPEAN SERVICES DECLARATION SUMMED UP IN SIX POINTS
The European Services Declaration must be filed with the Department of Customs at its official website: pro.douane.gouv.fr
There is no threshold for the DES, unlike the DEB
The term Intrastat is the name used to designate the DEB and DES in the other member countries of the European Union
Heavy legal penalties may be imposed in the event of failure to submit the DES, with fines of up to 1,500 € per month of failure to submit a declaration
Companies are legally entitled to use outside contractors to handle the DEB/DES/Intrastat on their behalf
The DEB and the DES are two separate declarations. The DES becomes mandatory following the first service provision
Would you like to speak to an adviser to find out more about the European Services Declaration ?
WHY SUBCONTRACT YOUR EUROPEAN SERVICES DECLARATIONS ?
From 1st January 2010, in support of an effort to achieve greater success in combating VAT fraud in the European Union, every intra-community service provider must fulfil an additional requirement: the European Services Declaration. Failure to comply renders the company liable to penalties.
Although processing the DES may appear straightforward, it may actually prove to be a complex and burdensome undertaking, particularly because of the regulatory analysis which precedes the declaration and which must include several elements such as:
criteria for exemption
overlaps within Europe
Subcontracting your DES to experts allows you to benefit from a comprehensive, professional and efficient service, fully compliant with the current regulations and declaration submission deadline.
WHAT ASD CAN DO FOR YOU
Our expertise and especially our processing centre dedicated to preparing and managing your European Service Declarations can assist you in several ways: in short, outsourcing the management of your DES lifts an extra burden from your staff in dealing with particularly complicated regulations and gives you security and peace of mind.
The following are some of the issues we can handle:
Analysis and study of the services provided
Monthly review of invoices and declarations
Production and distribution of monitoring tools to ensure consistency between your filed declarations and accounts presented
Assistance in the event of an administrative inspection
Establishment of specific training in processing the DES
Preparation, verification and filing of DEB, DES and Intrastat
ANALYSIS AND CONTROL
Detailed monthly analysis and monitoring of all your transaction flows
INPUT AND VERIFICATION
Input and verification of the accuracy of invoices and customs nomenclature
Research and verification of the customs nomenclature
Assistance during an administrative or customs inspection
Organisation of specific training in processing the DEB/DES, ideal for your employees
Our experts are at your disposal to answer your questions. Benefit from a free consultation!Ask us for advice
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