EC sales list (ESL)

Definition

The EC sales list (ESL) is a reporting requirement imposed by the Revenue Commissioners for businesses engaged in the supply of goods or services to other European Union (EU) member states. 

What is the EC sales list?

The ESL is part of the value added tax (VAT) compliance framework and is used to monitor and record cross-border transactions within the EU market.

The primary purpose of the EC sales list is to facilitate the collection of information on intra-community trade between Ireland and other EU member states. It enables tax authorities to monitor cross-border transactions and ensure compliance with VAT regulations.

Businesses registered for VAT in Ireland are required to submit an ESL to the Revenue Commissioners on a periodic basis, typically monthly or quarterly, depending on the volume and frequency of their intra-community transactions. The ESL must contain details of sales of goods or services to VAT-registered customers in other EU member states.

The ESL must include specific information about each intra-community transaction. This information helps tax authorities verify the accuracy of VAT declarations and identify potential cases of VAT fraud or non-compliance.

Failure to submit the ESL on time or accurately may result in penalties and interest charges imposed by the Revenue Commissioners. Businesses are responsible for ensuring the completeness and accuracy of the information reported on the ESL and for maintaining proper documentation to support their VAT declarations and filings.

Example of the EC sales list

Let’s consider Company X, located in Ireland, sells €10,000 worth of electronic equipment to Company Y, which is VAT registered in France.

• Registration: Both Company X and Company Y are registered for VAT in their respective countries.
• Sale: Company X invoices Company Y for €10,000 for the electronic equipment.
• EC sales list: Company X is required to include this sale on their EC sales list when submitting their VAT return to the Revenue Commissioners.
• Submission: Company X submits their EC sales list along with their VAT return to the Revenue Commissioners.
• Revenue Commissioners verification: The Revenue Commissioners verify the details provided by Company X against their records and ensure compliance with VAT regulations.