With the implementation of the second stage of the digital VAT pact in the European Union, the regulations for the One-Stop-Shop (OSS) will come into force on July 1st, 2021. According to the regulations, B2C sellers dispatching their goods from a single EU member state or a third country are no longer required to register for foreign VAT or complete multiple VAT filings in countries where they are selling. Instead, they may opt to complete and file a new OSS filing that lists all their pan-EU sales. The seller then remits the VAT due to their home VAT authority, which then forwards the taxes to the appropriate countries.
A dedicated blog for how OSS is implemented in SAP Business ByDesign can be found at:
With this blog, we would like to give a detailed approach that is being followed in SAP Business ByDesign for different countries impacted by the One Stop Shop legal change.
From 1st July 2021, plan is to have the following One Stop Shop tax content in Business ByDesign systems for the European Union countries.
- Two new tax events to support One Stop Shop for goods and services.
- 476 : EU Sale of Service to private persons (OSS)
- 480 : EU Sale of Goods to private persons (OSS)
- Country specific tax codes for available rate types and above event combinations.
- Automatic determination of One Stop Shop tax code, is planned for the SAP delivered countries apart from United Kingdom in 2105 release. For all other countries the automatic tax determination is planned to be available with 2108 release. Please note that the preconditions for One Stop Shop functionality has to be fulfilled for the auto determination of the tax code.
Note : Tax event 476 is planned to be provided for United Kingdom since One Stop Shop will only be applicable for Goods in the Northern Ireland region of United Kingdom.
Please find below the plan on One Stop Shop for different country versions in SAP Business ByDesign:
SAP Business ByDesign delivered countries
For the below list of SAP Business ByDesign delivered country versions, the plan is to support the One Stop Shop tax content and One Stop Shop tax return.
- United Kingdom ( Northern Ireland )
SAP Business ByDesign pre-localized countries
Among the pre-localized country versions by SAP Business ByDesign for Greece and Poland, the plan is to support One Stop Shop tax content and One Stop Shop tax return. Any output file requirement has to be handled by partners.
For Romania, Finland and Lithuania the mentioned One Stop Shop tax content is planned to be supported. One Stop Shop tax return will have to fulfilled by the partners.
SAP Business ByDesign tax basic countries
For the below SAP Business ByDesign tax basic country versions, only the One Stop Shop tax content is planned to be supported. One Stop Shop tax return type implementation and any output file requirements will have to be fulfilled by the partners. More details can on the approach can be found in the following sections.
- Czech Republic
One Stop Shop tax return type implementation by partner
One Stop Shop tax return type can be implemented via the partners through Cloud application studio. For details on how to create a tax return please refer to the Localization Toolkit documentation in the Business ByDesign partner JAM group. Kindly note that you will need request to be added as a member to to access the documentation.
Note: While creating the One Stop Shop tax return type via the cloud application studio following checkbox has to be mandatorily checked to mark the tax return type as One Stop Shop relevant return type.
One Stop Shop tax return file generation
For generating file output for One Stop Shop tax returns customers/partners can use the available XSLT repository feature.
Please go through the following video for details on the same.
This blog post is intended to help the customers and partners in understanding the country wise approach that is decided in Business ByDesign to support One Stop Shop legal change. Kindly provide your questions, if any, in the comments section and we will respond to you.