This guide covers the special VAT scheme (One Stop Shop) in Netvisor.
The use of the special VAT scheme expands on 1.7.2021 to cover not only consumer sales of electronic services but also sales of goods to consumers and businesses that are not VAT liable. If a Finnish selling company registers to use the One Stop Shop, it can report and pay VAT on these sales covered by the scheme to the Finnish Tax Administration instead of having to register for VAT in each EU country where the product is consumed. More information can also be found here.
CONTENTS
- General
- Tax rates and VAT liability accounts
- Product and customer cards
- Invoicing and reporting
- OmaVero
- Considerations and other tips
General
In Netvisor, there is no separate function for reporting the special VAT scheme; instead, reporting is done directly in OmaVero quarterly. For invoicing, separate product cards are created for products and services in Netvisor, and the VAT rate of each target country is added to the system. Additionally, for reporting, a separate VAT liability account is created for each target country, and sales covered by the special scheme are recorded with a memo voucher monthly to prevent these sales from mixing with Netvisor's VAT calculation and declaration.
In Netvisor, sales under different countries' VAT rates are manually corrected so that sales appear under field 309 "Sales subject to 0% VAT rate" on the VAT declaration. Sales in Netvisor are recorded with the VAT code KOMY 0% to ensure successful reporting.
Below are instructions on how to record and report events covered by the reporting in Netvisor. If there are few invoices, each invoice voucher can be manually edited one at a time. If there are many invoices, the correction can be done monthly using an MU voucher.
Tax rates and VAT liability accounts
The tax rates of different countries must be added to the Netvisor environment. Tax rates can be added in the Accounting settings under Accounting and obligations settings > Tax rate management.
Separate VAT liability accounts are established in the Netvisor account list for each target country. Taxes for one country are recorded on one VAT liability account.
Product and customer cards
A separate product card is created for each sold product or service, distinguishing whether it is a good or a service, and the applicable VAT rate of the respective EU country is saved for the product. Separate product cards must exist for services and goods.
If you want the VAT code KOMY to automatically appear on the ML voucher, the default accounting account for the product in the EU account field should be selected as an account with Domestic tax treatment, for example, like this:
If desired, the voucher can also be edited manually. Detailed recording instructions for both methods can be found further down in the guide. Creating a new product.
Ensure that the customer's delivery country is the consumption country of the commodity. The delivery country can be saved in the customer card under Location information and used on the invoice, or alternatively, added manually directly to the invoice in the Delivery country field.
Invoicing and reporting
When invoicing, only products with the same VAT rate are invoiced on one invoice, and additionally, goods and services are invoiced on separate invoices. This is because sufficient breakdown of events (product, service, tax base / tax-free amount, and tax amount) can be obtained on the Sales invoice list.
There are a couple of different options for handling VAT, with example entries below.
Option 1 (edit each ML voucher separately)
The VAT portion is formed on the invoice according to the VAT percentage on the invoice line (on the product card). Thus, the invoice sent to the customer is formed with the correct VAT rate of the delivery country.
The invoice voucher is formed according to the customer's billing country and the product card's accounting account. However, the ML voucher of the invoice is manually edited after sending the invoice. Sales are recorded as KOMY 0% (so that the sale appears in field 309 on the VAT declaration), and VAT is transferred from the system's default VAT liability account to ensure the correct amount of VAT to be remitted from Netvisor. Below is an example of a voucher after modifications.
Option 2 (collect monthly sales on one MU voucher)
The VAT portion appears on the invoice according to the VAT percentage on the invoice line in the same way as in Option 1.
If the accounting account has the code KOMY, the voucher is formed as KOMY X% (X is the tax rate defined for the product).
Sales covered by the special scheme are recorded monthly in bulk on an MU voucher. All sales to the same target country can be recorded on one line. Sales recorded to the same target country can be listed using the Sales invoice list with extended search criteria for delivery country, product, and time limit.
If necessary, add "Delivery country", "Tax-free amount", and "VAT" from the "Show columns" selection under invoice information to the Sales invoice list.
Sales are recorded/adjusted with an MU voucher, where KOMY X% is transferred to KOMY 0%, and VAT is also transferred from the system's default VAT liability account. When creating the voucher, automatic VAT calculation can be set to Off, and note whether the voucher is net or gross handling. It is good to note in the voucher line description that the voucher adjusts the VAT of sales covered by the special scheme. Below is an example of a voucher.
There should not be a VAT liability balance according to another country's VAT rate, otherwise, this will disrupt Netvisor's monthly VAT declaration.
At the end of each month, ensure that events have used the VAT code KOMY and the VAT percentage is 0%, so that the events appear on the normal VAT calculation and VAT declaration under "309 0% VAT rate turnover".
The VAT calculation should be reviewed carefully monthly to ensure that these specific reportable EU sales events do not appear with the VAT rates of those EU countries. Events are displayed on the VAT calculation broken down by VAT rates and accounts, so the check is easily done.
OmaVero
When sales invoices and VAT entries are up to date in Netvisor, the desired sales can be retrieved through the Sales invoice list, which can be used for tax reporting in OmaVero.
Sales are retrieved on the Sales invoice list using the extended search with criteria for delivery country, product, and time limit.
The sales invoice listing should be taken separately for products and services. The sales invoice listing should be grouped according to the Delivery country information. If necessary, add "Delivery country", "Tax-free amount", and "VAT" from the "Show columns" selection under invoice information.
Take the sales invoice list directly from Netvisor into Excel (button "Save as Excel file" in the view) and continue working on the reportable data in Excel. Note, among other things, the following:
If the delivery country is not the consumption country of the sold commodity, the country information must be changed to the correct one, and the correct country code must be noted for reporting
Ensure that the valid VAT percentage of the respective EU country has come from the product information (e.g., perform a check calculation in Excel using the Invoice amount, Tax-free amount, and VAT. This can also verify whether sales subject to different VAT rates have accidentally been included on the invoice).
If the selling company has a fixed establishment in any EU country, such sales are removed from the report
Add country codes to the information
Sales are reported in OmaVero quarterly. The due date for reporting and paying the first reporting period, 1.7.2021 - 30.9.2021, is the last day of October.
Considerations and other tips
Product groups
If there are many products, to facilitate reporting, products under the same country and VAT rate can be grouped under one product group. This way, sales can be retrieved on the sales invoice list using the "Product group" filter, and each product does not need to be retrieved separately. For example, establish a product group "Goods Germany 9%" and add all goods with a 9% VAT rate to this product group.
VAT calculation and declaration
Other countries' tax rates appear on the VAT calculation, but it is important to check that there is no balance left (i.e., the balance has been adjusted with an MU voucher). Below is an example where a 15% VAT rate was used in sales, but the MU voucher has adjusted the balance of that rate.
Field 309 on the VAT declaration should show the entire balance of sales covered by the special scheme.
Inventory
Multiple product cards can be created for the same product. If inventory is used, the product covered by the special scheme should be Non-stocked, and the inventory balance of the product should be monitored with only one product card. When a product covered by the special scheme (non-stocked) is invoiced, an inventory line for the stocked product is manually added to the inventory information afterward. This keeps the inventory balance up to date.
Another option is to correct the inventory balance after invoicing with an inventory entry. You can find the inventory guide here: Inventory.
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