General

The Special scheme One Stop Shop (OSS) makes it possible to declare VAT for cross-border B2C (business to consumer) sales, to all Member States of the European Union, in one single return and pay the whole VAT for these transactions in his/her own Member State without the obligation to register for VAT liability in the Member States where the end users are located.

The special arrangements for VAT entered into force on 01.07.2021 and cover all services sold to consumers within the EU as well as the distance selling of goods to consumers within the EU.
Read more here about the OSS here: https://vat-one-stop-shop.ec.europa.eu/system/files/2021-07/OSS_guidelines_en.pdf

Briox will allow their users to report VAT according to the OSS by creating an OSS VAT report enabled by the features described below.

This report will contain the necessary information so that users can:

• enter the required  information manually to the OSS at their local tax offices.
• In Finland, a file that can be uploaded at the Tax Office (vero.fi) can be created directly.

Limitations

• The OSS functionality in Briox covers only supplies (shipments) made from the Member State of identification to the Member State of consumption, declared in Parts 2a and 2b of the One Stop Shop VAT Return.  
  We do not handle supplies (shipments) made from warehouses in Member States other than the Member State of identification, declared in Parts 2e & 2d of the One Stop Shop VAT Return.  
  
  
• OSS reporting will not work with the Cash method of accounting.
  
• OSS is not available from Quotes & Orders
• OSS reporting will require using items in the invoice, including for freight and invoice charges.

Summary

1. Activate the functionality & User rights
   

2. Default Accounts for OSS reporting

3. OSS  Customers and Invoices 

4. The OSS VAT report
5. Notes

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Activate the One Stop Shop (OSS) functionality

Activating the OSS functionality will enable reporting VAT according to the special OSS regime directly to your local tax authorities.

Turn the functionality on under Settings - Company Settings - Activate functionality.
Click Save.

This will activate the following in the program:

• User rights for submitting the OSS VAT Report.
• Four new default accounts will be activated to manage the OSS reporting.
• An OSS marking on your customers in the registry.
• An OSS checkbox & free VAT rate entry on the customer invoice.
• A new VAT report will become available in the main menu under reports

Note: OSS VAT is handled solely with the OSS sales account and you do not need to set up any accounts on your items.

User Rights

Access to activating the OSS reporting functionality will be limited to the Administrator for Accounting and the Systems Administrator. 

Only users that have the right to Submit the OSS VAT report can create the OSS VAT report file and post the journal based on the OSS report. See below.

To View the OSS report and print it on screen or as a PDF you only need to have the right to View reports under accounting. The Auditor will also have the right to view the OSS VAT report. See below.

Default Accounts for OSS reporting

When the OSS functionality is activated, 4 new default accounts are created under Registry - Chart of Accounts - Default Accounts, to handle the OSS reporting.

• If you have chosen to create your financial year with the Briox standard COA the accounts will be set up automatically including the correct account classes and any necessary VAT codes.
  
  
• If you have copied your previous chart of accounts or have created your own chart of accounts and the default accounts are missing, your can choose or create your own accounts.

For detailed information about the default accounts read: Default accounts for handling OSS

OSS  Customers and Invoices 

The OSS customer 

OSS customers can be marked as OSS VAT directly in the Customer registry.

• The country must be within Europe but not have the local country code.
  
  
• The customer must be of type Private (B to C sales).
  
  
• A sales account is not mandatory as the default account will be used when creating the invoice. Remember that if you set up your own sales account, it should have the VAT code OSS in Finland and in Lithuania use this VAT code on the sales account only if you want the OSS invoices to appear in the i-SAF report with the tax code PVM 100.
  
  
• If a customer is not marked as OSS but complies with the conditions above: European country but not local & type Private, then an OSS invoice can be created for the customer by simply marking the invoice as OSS.

The OSS customer invoice

All OSS invoices automatically get sent to the OSS report.

• In Finland: when the invoice is posted
• In Estonia, Latvia and Lithuania: when the invoice is paid

In OSS invoices:

• Items are mandatory
  When choosing the sales account on an OSS invoice we do NOT look at the account set on the Item, only if the item is a good or a service.
  This information is saved on each invoice row to later be displayed in the OSS report. For this reason, freight and invoice charges must also be invoiced as items in the invoice.
  
  
• Recurring invoices and cash invoices can also be created for OSS customers / as OSS invoices.
  
  
• In an OSS invoice the VAT field is unlocked and the VAT rate (in %) must be entered manually for the specific country the goods or services are being sold to.

The OSS VAT report

General

The OSS VAT report is located in the main left hand menu under Reports.

The OSS VAT report contains the necessary information so that users can enter the required  information manually in Parts 2a and 2b of the One Stop Shop VAT Return at their local tax offices.
In Finland a file that can be uploaded at the Tax Office can also be created.

• In Finland the invoices must be posted to appear in the report
• In Estonia, Latvia and Lithuania, the invoices must be paid to appear in the report
• The OSS Report is always and only in Euro.
• The OSS VAT report looks at all the items rows on all the OSS invoices for the period. 

Report description

The OSS VAT report has three versions:

• The detailed version with a drill down to the invoices.
  
  
• A standard version displays the country / Goods or Service/ VAT rate / total sales ex-VAT in € / VAT amount in €
  
  
• A compact version shows the country as well as total sales ex-VAT in € / VAT amount in €.

A summary is always visible at the bottom.

The summary is for the total of goods and services divided into positive and negative amounts, as well as a total for everything.

• In the case of a negative balance: Negative amounts within a period are simply deducted from the total.
• If the total amount for one member state is negative the negative amount should be presented on a separate row in the summary.
• The Total amount of corrections is always presented separately.

The period:

• Quarter is standard, but you can also choose:
• Year
• Month
• Or any period using the date picker
  
  

Corrections can be included in the report when the quarterly report is chosen. These are always corrections from the previous quarter.
Once an invoice has been submitted to an OSS report it can no longer be changed. Making changes to the journal will create a discrepancy in accounting so we recommend you locking the period after submitting your OSS VAT report.

Report Submission

• • The report can be printed as a PDF
  • In Finland a .csv file that can be uploaded at the tax office (Vero.fi) can be created. Select Create VAT report file.
  • Upon submission of the report a journal is created automatically in accounting, emptying the VAT to the default VAT control account. This journal has its own predefined journal type: N
    In Estonia, Latvia and Lithuania, the Create OSS VAT report file button is replaced by: Create OSS VAT report journal.
    

Tracking

• Upon submission of the report your selected version of the report is saved to the linked documents section of the Archive under OSS VAT Report.
  
  
• The journal created upon submission  is automatically linked to the image of the submitted VAT report as mentioned above. 
  
  
  
  

• • All invoices submitted to the VAT report are automatically marked as submitted with a check box in the invoice list.
    
    
    
    
    
  • A history of submitted report is loged in the report view: Click Show VAT report History to open the modal.
    
    

Notes

Note about Rounding:

The VAT posted on the OSS output VAT account, will most probably differ from the VAT being posted from the OSS VAT report.

This difference is because the VAT posted in the journal is rounded once on the bottom line, while the VAT in the OSS report is rounded numerous times: for goods and services and for every VAT rate per country. These numerous rounding occasions will inevitably cause a difference.

For this reason, when posting the OSS report journal, we automatically post any difference on the rounding account so that journal can balance even if the VAT control account is not identical to the VAT reported in from the OSS VAT report.

To highlight this and for tracking purposes, we always add the transaction information text: OSS VAT Rounding on the rounding account.

Note: The OSS property is available in the API: https://apidoc-fi.briox.services/