Information on the type of transaction, ie the Nature of Transaction Code (NoTC) is collected because, whilst most trade is in either simple sales or purchases (NoTC 1), some transactions are recorded differently for statistical purposes.
What is the Nature of Transaction Code (NoTC)
A Nature of Transaction Code (NoTC) is used to indicate the type of transaction which is being declared on the Supplementary Declaration. For example straight forward sales or acquisitions, goods sent for processing or free-of-charge goods.
The codes commonly used are:
- code 10 for a straightforward sale or purchase
- code 30 for free-of-charge goods
- code 40 for goods sent for processing
- code 50 for goods returned following processing
The NoTC will normally only comprise one digit and a zero (for example NoTC 10, 40 and 50).
However, a second optional digit can be used to help you reconcile your Intrastat and VAT accounts, explaining anomalies which otherwise might result in enquiries from HMRC (for example NoTC 16, 17 and 18). Use of this second additional digit information is not mandatory.
The NoTCs recognised by HMRC systems are:
10, 16, 17, 18, 20, 30, 37, 38, 40, 50, 70, 77, 78, 80, 87, 88, 90, 97 and 98.
So, for example, the two digit combination of '26' or '60' will not be accepted.