Intra-Community supplies (ICS)

Proving goods have been transported without engagement of presumption of transport

Where the supplier is not in possession of the documents required to engage the presumption of transport, this does not automatically mean that the zero rate cannot apply. The zero rate can still apply if satisfactory evidence of dispatch and transport can be produced. The evidence required will depend on who arranged the transportation. The different scenarios are outlined below.

Transportation arranged by the supplier

Where the supplier has arranged the transportation of goods to a customer, the commercial documentation related to the supply and transportation should be retained by that supplier.

Examples include:

  • order document
  • delivery docket
  • supplier’s invoice
  • transport document, such as a bill of lading
  • evidence of transfer of funds from foreign banks for payment.

Transportation arranged by the customer

The business customer may arrange transport for the goods or take the goods away in their own transport. In such circumstances, the supplier must be satisfied that the goods have been transported or dispatched to another EU Member State.

The supplier should obtain and retain documentary evidence from the customer. This documentation is used as evidence of receipt of the goods in the other Member State. In such cases, documentary evidence may include:

  • copies of warehouse receipts
  • or
  • delivery dockets.

Details of the means of transport used by the customer for transportation of the goods should also be retained, such as:

  • vehicle registration number
  • flight number
  • ship sailing details.

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