OSS Invoicing and Tax Rate Determination
As a seller, you must be aware of the relevant rules in all the EU member states where you make B2C supplies.
Your invoices must comply with each EU member state’s VAT invoicing rules.
This compliance requirement means that, in many countries, you cannot have both OSS and non-OSS transactions on the same invoice.
On web stores, an error message pops up when a customer tries to include a non-OSS service with OSS goods or services in the same order. The customer must create two separate orders.
You can customize the web store popup message if you are using SuiteCommerce Site Builder. For more information about customizing web store error messages, see Customizing Website Text.
The tax rate to be applied to web store orders for services is determined by the customer’s IP address, in conjunction with the billing address, thus providing the two pieces of evidence required under the OSS legislation. Orders for services which are not created via e-commerce use the Bill To address of the customer to determine the tax rate. Orders for goods use the customer’s Ship To address to determine the tax rate.
Customers identified for OSS are those that do not have a VAT registration number on the customer record, and who are associated with a subsidiary that is marked for OSS and has an OSS nexus. On an OSS transaction, the default tax code on the customer record will not be applied. Instead, the system will apply the appropriate OSS tax code for the customer’s country. So there is no need to change the default tax code on the customer record.
NetSuite provisions all tax rates, including standard, reduced, and super reduced, where applicable, and automatically applies the standard rate on transactions. You must manually apply any reduced rates to transactions.