When a company sells supplies or other services to another company established in an EU member state, it must submit an ESL. Every intra-EC turnover must be reported to HM Revenue and Customs (HMRC). However, it is also necessary to submit an EC sales list even if you do not sell goods to another company outside the UK – if you have a VAT-registered company branch outside of the UK, and move goods to it, then an ESL is also required. Furthermore, goods sold to a customer outside of the UK and shipped from your supplier in another EU member state must also be accounted for through an ESL.
For example, if a customer in Austria buys from your company, but your supplier is in Belgium, then the Belgian supplier delivers the goods to the Austrian customer – and the invoice your UK company receives must then be accounted for by submitting an EC sales list. Additionally, if your business provides a service to a VAT-registered business within another member state, and the other business accounts for the VAT (under the reverse charge mechanism), then this must be accounted for by submitting an EC sales list.
If your business does not frequently make transactions with other member states, but is mainly active within the UK, it may be possible to submit a simplified ESL. This has the advantage of your business not having to enter the actual value of supplies to each customer individually, and only having to complete it once a year. Businesses may be eligible for the simplified ESL if your revenue to customers in other member states does not exceed £11,000, and if your business does not make more than the VAT registration threshold plus £25,500.