Do you sell products within the EU and do your customers not file a VAT return? If you have a turnover of more than €10.000 in a calendar year, you must charge VAT according to the rates of the customer's country.
For example, if your shop is located in the Netherlands and a British customer makes a purchase, a British VAT percentage will be charged.
If you enable this, the customer's location will be used to determine the VAT rate. This means that you do not set a fixed rate per product.
How do I know if this applies to me?
Within Plug&Pay, we cannot see or determine whether your turnover is above the threshold. You must decide this yourself. Once decided, you enter the correct VAT settings for your situation.
Not sure whether you should comply with the OSS schemes? Contact an accountant who can specifically advise you on which settings to use.
Dutch entrepreneurs can find additional information here.
VAT settings in Plug&Pay
In Plug&Pay, you can determine the VAT settings for your shop under Settings > VAT & Union Regulation.
General information about VAT settings can be found here.
Here you see the option to Configure the VAT rules for e-commerce in the EU.
Setting up the OSS
Once you click Configure a screen will pop up. Let's go through it!
Introduction
First you see an introduction screen, which explains the OSS scheme.
Read through this so you understand it, and click Next.
VAT profiles
To calculate VAT correctly, Plug&Pay works with VAT profiles. You can create a VAT profile. In each VAT profile, you set what the VAT percentage should be per country. In a later step, you can then link this VAT rate to a product.
By default, we have a Standard VAT rate profile. You see which VAT rates apply to which country. The VAT rates determined here are used for your products.
Do you sell products with different VAT rates? You must create a new profile:
Here you can select the standard VAT rates per country:
If you don’t enter one of the countries in the VAT profile, and you still sell a product to someone based in that country, the standard VAT rate of that country will be applied.
Have you created the VAT profiles you need? Then click the Go to step 3 button to continue.
Products
In the next step, you will see a list of all the products you have in your Plug&Pay account. Here you can indicate whether you want this product to use these settings. If so, you choose which VAT profile should be used for this product.
Important to know:
Is the product you select a subscription? After selecting the VAT profile, this VAT profile will also apply to your existing subscriptions. These subscriptions will therefore change automatically and do not need to be adjusted manually.
Products that you have set to include VAT will remain the same price everywhere after enabling these settings. A €10 incl. VAT product will therefore cost €10 in both Germany and the Netherlands. Only the VAT percentage differs.
For products that you have set to exclude VAT, the different VAT percentages will be added on top. This means that the total price of a product in Germany and the Netherlands will differ due to the different VAT rates.
Overview
Here you indicate from which day forward you want the OSS settings to activate.
Selected an Effective date for your OSS settings? Click Activate.
Adjusting settings afterwards
You can always adjust the settings afterwards by clicking Customise settings.
Need help?
Do you have questions about the OSS scheme?
For financial questions, it is best to check with an account or your local tax authorities.
For questions how to enter your desired setting, you can contact our support via the chat in the bottom right-hand corner of your screen!