The monitoring feature in the OSS of the intra-community B2C for distance sales according to law 4818/2021 and article 1242/2021, concerns the taxable persons (salespersons) that live in a MS and engage in intra-community distance sales of goods and/or services to non-taxable persons in other MS. When the total amount of such transactions exceeds EUR 10,000 in a single year, such taxable persons must apply VAT to the MS of consumption and register with the special VAT OSS scheme.
Transactions subject to this regulation are taxed at the rate of the recipient's country. Below is a detailed example of implementation. In these transactions, the appropriate rate is proposed for the goods/services depending on the country of the recipient.
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VAT rate in the RECIPIENT’S location
As a first step, it is necessary to create new VAT Categories for the differentiated VAT rates per (EU) Country of the Recipient. Then, these new VAT categories should be matched to each of their Implementation countries.
In the Settings/VAT Settings menu, on the first tab, VAT Categories, create the new categories with the rates of the respective countries and assign each category to its Implementation country.
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In the second tab, Category mapping, specify the rate relations. That is, match the "national" VAT category with the new categories of the other EU countries.
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Items & Services
No change is required in items: All items (and all potential autonomous special accounts) involved in invoicing have ONE specific VAT category, the “national” one, which is the one that they’ll keep. It is the VAT category that applies to domestic and all other transactions that do not fall under this Directive.
Transaction types
The new Transaction types table was added to the Settings/Transaction tables menu. Here, create an entry (if it doesn't already exist) that will be used to classify these transactions. In this table, the following columns facilitate the configuration of VAT calculation when invoicing in sales documents.
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VAT calculation by Country | This setting should be enabled. Then, the system will replace in the document lines the VAT category proposed by the item/service with the VAT category of the recipient's country, based on the Vat category mappings table, for the specific Country of the customer's (Recipient) address entered in the document. Let’s say that we have items/services in the standard 24% VAT category and intra-community sales in France and Spain. In the VAT Categories table, create 3 categories with the main rates for Greece, France, Spain. Item-Service VAT Categories:
In the VAT category mappings table, set the relation of the national rate with the two foreign country categories. VAT category mappings:
Result: Based on the Country of the customer's Address, the VAT category of the lines is automatically changed, based on the VAT category mappings. |
The VAT regime is affected | If activated, then regardless of how the “VAT regime” field in the document header gets a default value (in the Sales from the trade account and their Address, in the Purchases from the corporate branch, apart from exempt creditors), the system will replace this default price with the one specified in the present transaction type (in the next field “VAT regime”). |
VAT regime | Used if the previous field is enabled. This functionality is necessary when the sale is digital e.g. on the Internet and the VAT and retail prices DO NOT vary. Therefore, it depends on the address indicated by the customer. That means the user can specify the appropriate “transaction type” and always apply the desired “VAT regime”. |
Document types & Series
The Transaction type field was added to the Document types and Document series. The document types, as well as the document series, for sales documents used for the sale of items and services, to which this legislation applies, should be appropriately classified, in order to activate the functionality of the default VAT rate. This classification can be made through the Transaction types.
Document types: | Document series: |
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Note that
The transaction type in the document header is suggested by the document series, or (if not specified there) by the document type. Otherwise, the default value is blank.
We suggest creating a separate document series for these cases, so that it's automatically the default when adding a document.
Application to documents
When adding a wholesale or retail sales transaction that falls under this setting, as stated through the series, the appropriate value may be automatically suggested in the Transaction type field, located in the More tab.
Once an EU trade account has been selected, the corresponding VAT category will be the default, based on the mapping table.
In addition, the Reason for VAT exemption should be added: 19 - No VAT - article 47 of the VAT Code
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myData - Transaction transmission
The transmission of this transaction to myDATA does not require any special configuration.
Note that
1st classification line for the Net value
Classification: E3_561_001 - Sales of goods and services Wholesale – Registered Professionals or
E3_561_003 - Sales of goods and services Retail - Private Customers
Category: 1 - Revenue from sales of goods (+) / (-)
Note that
2st classification line for the VAT value
Classification: Blank
Category: 95 - Other Revenue Information (+) / (-)
Reason for VAT exemption: 19