To work with the new One-Stop Shop (OSS) regulations, you can create a new VAT code, simply follow the instructions below in order to create these invoices. This is a temporary measure until we have the necessary implementations in place to carry it out:
IMPORTANT! ALL INVOICES SHOULD BE LEFT IN DRAFT
One Stop Shop VAT code setup
You can create as many VAT codes as necessary, if you invoice to different countries, such as France, Germany and Italy, you can create 3 new VAT codes following these examples:
- Select New VAT Code
- Type – Select Sales
- Rate Type – select ‘Out of Scope’ (this will ensure the invoice is not recorded on your normal VAT Return which is sent to HMRC as OSS needs to be reported separately).
- VAT Code – enter OSSFR for France, OSSES for Spain etc.
- Name – in the example, OSS France
- Rate % – this reflects the rate of VAT for the country you are creating the code for, in the example France which is currently 20%
- Account number – a new account number needs to created within your chart of accounts Balance sheet section with which the vat element can be charged to. For example acct 2207 OSS VAT.
- Access – open
We recommend you create a new number series within Sales > Configuration > Number series in order for all OSS sales invoices, this will make it easier for you to identify these and they will then be located separately within your VAT Sales Transactions reports.
When you create your first OSS invoice, select the customer, change the Number series to the OSS number series you created, will see the draft number reflecting this, select the product you are charging, then change the VAT code to, in this example, OSSFR.
LEAVE THE INVOICE AS A DRAFT INVOICE AND CHECK THE SALES VAT TRANSACTION REPORT
When you run your sales VAT Transaction list select the number series OSS, you will see all of your OSS sales listed.