Tax Code Provisioning in One Stop Shop (OSS)
After you save your One Stop Shop setup, the SuiteTax Engine automatically creates OSS tax types, tax codes, and tax accounts for each Member State of Identification.
Default Tax Codes for OSS
The following six tax codes are based on the new tax type for OSS transactions:
-
Standard-rated
-
Reduced-rated
-
Super reduced-rated
-
Super super reduced-rated
-
Zero-rated
-
Not-liable
The tax rates the SuiteTax Engine applies to OSS distance sales are listed in this table (last updated in April 2024):
|
Country |
Standard Rate |
Reduced Rate |
Super Reduced Rate |
Super Super Reduced Rate |
|---|---|---|---|---|
|
Austria |
20.00% |
13.00% |
10.00% |
— |
|
Belgium |
21.00% |
12.00% |
6.00% |
— |
|
Bulgaria |
20.00% |
9.00% |
— |
— |
|
Croatia |
25.00% |
13.00% |
5.00% |
— |
|
Cyprus |
19.00% |
9.00% |
5.00% |
3.00% |
|
Czechia |
21.00% |
12.00% |
10.00% |
— |
|
Denmark |
25.00% |
— |
— |
— |
|
Germany |
19.00% |
7.00% |
— |
— |
|
Estonia |
22.00% |
9.00% |
5.00% |
— |
|
Finland |
24.00% |
14.00% |
10.00% |
— |
|
France |
20.00% |
10.00% |
5.50% |
2.10% |
|
Greece |
24.00% |
13.00% |
6.00% |
— |
|
Hungary |
27.00% |
18.00% |
5.00% |
— |
|
Ireland |
23.00% |
13.50% |
9.00% |
4.80% |
|
Italy |
22.00% |
10.00% |
5.00% |
— |
|
Latvia |
21.00% |
12.00% |
5.00% |
— |
|
Lithuania |
21.00% |
9.00% |
5.00% |
— |
|
Luxembourg |
17.00% |
14.00% |
8.00% |
3.00% |
|
Malta |
18.00% |
7.00% |
5.00% |
12.00% |
|
Netherlands |
21.00% |
9.00% |
— |
— |
|
Poland |
23.00% |
8.00% |
5.00% |
— |
|
Portugal |
23.00% |
13.00% |
6.00% |
— |
|
Romania |
19.00% |
9.00% |
5.00% |
— |
|
Sweden |
25.00% |
12.00% |
6.00% |
— |
|
Slovenia |
22.00% |
9.50% |
5.00% |
— |
|
Slovakia |
20.00% |
10.00% |
— |
— |
|
Spain |
21.00% |
10.00% |
4.00% |
— |
|
United Kingdom |
20.00% |
5.00% |
— |
— |
SuiteTax creates one OSS tax code per rate type that applies to all EU countries, with the rate based on the customer's country. This tax code does not contain any information about the tax rate. Instead, the tax rate is determined on the transaction based on the combination of the tax code and the customer's OSS Country. For example, Germany (DE) is the Member State of Identification and OSS(DE)_SR is the OSS tax code. The same OSS tax code shows as 23% on a sale to a Portuguese customer and as 19% on a sale to a customer in Romania.
Since November 2022, SuiteTax Engine automatically provisioned the special reduced rate of 5% for Spain which was applicable to supplies of gas (and supply of electricity in very specific situations) and was valid till December 31, 2023. Please note that to keep the continuity of the general Spain super reduced rate of 4% and all the settings customers might have for this tax rate/code in NetSuite, this 5% rate was classified as a “Super super reduced rate” (even if higher than the general super reduced rate of 4%).
Since January 2024, SuiteTax Engine automatically provisions the special reduced rate of 12% for Malta which is now applicable to securities and credit management, certain health care services, and some other services.
Please note that to keep continuity of the general Malta reduced rate of 7 % and super reduced rate of 5% and all the settings customer might have for this tax rate/code in NetSuite, the new 12% rate is classified as “Super super reduced rate” (even if higher than the general reduced and super reduced rate).
If you change a subsidiary's Member State of Identification, new tax codes are automatically provisioned, and NetSuite does not delete the codes for the previous Member State of Identification.
In addition, for each Member State of Identification's nexuses, the SuiteTax Engine adds an OSS Distance Sale tax transaction type to the Default Tax Codes/Groups subtab on nexus record. The SuiteTax Engine sets this value by default to standard-rated tax codes. Use this tax transaction type to change which OSS tax rate should apply to goods and services by default. You can only select OSS tax codes for OSS distance sales. Nexuses in EU countries which you have not listed as Member States of Identification do not have the OSS Distance Sale tax transaction type.
Changing Default Tax Codes for OSS
If you need to use a different tax code in your OSS transaction, the following procedure helps you to set or change the nexus default tax codes.
To set or change the nexus default tax code for OSS transactions:
-
Go to Setup > Tax > Nexuses, and click Edit for the nexus you want to select tax codes for.
-
In the Default Tax Codes/Groups subtab, select a default tax code to use for goods or services for the OSS Distance Sale tax transaction type.
-
Click Save.
Related Topics
- European Union (EU) One Stop Shop (OSS) for the SuiteTax Engine
- Prerequisites for One Stop Shop (OSS) in SuiteTax
- One Stop Shop (OSS) Permission
- Setting Up One Stop Shop (OSS) in the SuiteTax Engine
- One Stop Shop (OSS) Tax Schedules
- Tax Details for OSS on Transactions
- One Stop Shop (OSS) for SuiteTax Lookup Logic