An intra-EU VAT registration facilitates intra-community acquisitions from and reporting of intra-community supplies to all EU member states.
An intra-EU supplier must report these sales transactions on VIES returns electronically to the Revenue Commissioners.
As VIES (VAT Information Exchange System) is a mechanism whereby checks can be made in each Member State on the validity of claims to zero-rating VAT, it assists detection of unreported movements of zero-rated goods and services between Member States.
VIES returns must include details of all VAT registered customers in other Member States to whom the business has supplied goods and services to in respect of which that customer is liable for payment of the VAT due by the reverse charge system.
A NIL return must be filed if no supplies have been made.
Failure to comply with regulations attracts a penalty of €4000 per return and Revenue has an active prosecution policy.