When, as an entrepreneur, you supply goods or services to companies in other EU countries, you have to deal with the CPI declaration. For many entrepreneurs, this is a recurring administrative task that is easily overlooked, but essential for correct VAT administration.
In this blog, we explain what a CPI declaration is, when to file it and how smart software like TriFact365 makes the process a lot easier.
What is a CPI declaration?
ICP stands for Intra-Community Performance. If you supply goods or perform services to a VAT-taxable company in another EU country, you must report these supplies in the ICP declaration. This is a separate declaration in addition to your regular VAT declaration.
In this, you specify per customer:
- The VAT number of your customer in another EU country
- The total amount of goods or services you provided
The tax authorities use this information to check whether your customer in the other EU country has declared the correct VAT.
When do you have to file CPI returns?
You file CPI returns on a monthly, quarterly or annual basis, depending on how often you supply other EU countries. In most cases:
- Do you regularly supply other EU countries? If so, you must submit monthly declarations.
- Do you deliver occasionally? Then it is usually allowed quarterly.
Note that if you also use the reverse charge mechanism, you need to be extra alert to it in your records.
What happens if you don’t file a CPI return?
Not (or not timely) filing a CPI return can lead to fines and extra checks by the tax authorities. It can also cause problems with your foreign business partners if your VAT number is incorrect or not reported on time. Good record keeping is therefore crucial.
How TriFact365 helps
The CPI declaration may seem like a difficult, time-consuming job, but with TriFact365 it becomes a lot easier. This software automates a significant part of your administrative processes.
Think about:
- Automatic recognition of invoice data, including VAT numbers of your customers in other EU countries
- Smart links with your accounting software, ensuring all transactions are properly recorded
- Real-time insight into which invoices still need to be posted, so you are always ready for the tax return
Thanks to TriFact365, you have all the data you need for your CPI declaration quickly and conveniently to hand. No more manual searches in Excel files or loose invoices – your administration is up-to-date and reliable.
The declaration is an obligation for every entrepreneur doing business within the EU. By filing on time and correctly, you avoid fines and administrative hassle.
