Intrastat reporting is not required for transactions either between two locations within one state or between two different states, if one of them is not an EU member. Also, some geographical locations, e.g., the Channel Islands or land, do not require Intrastat reporting.
Excluding a supplier address from Intrastat reporting is done by enabling the Intrastat Exempt option on the Supplier/Address/Purchase Address Info tab.
The Intrastat information is added to the supplier address. Any transactions involving this address are excluded from Intrastat reporting.