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 Belgian customer makes a purchase, a Belgian 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 then click Next.
VAT profiles
To calculate VAT correctly, we work with VAT profiles.
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? Then you must create a new profile:
Then you can select the standard VAT rates per country:
Do not forget to Save profile!
If no VAT rates is selected, the Standard VAT rate is charged.
After creating / selecting the right VAT profile, click Next.
Products
The third step shows all your products. Per product you indicate which VAT profile is used:
❗️Important to know:
- Is the product a subscription? After selecting a VAT profile, the VAT rates will immediately apply to existing subscriptions.
- Products where VAT is included in the price, will cost the same everywhere. For example a product will cost €10 in both Germany and the Netherlands. Only the VAT rate will differ.
- Products where VAT is excluded in the price, will not cost the same. Instead, the price is based on the country's VAT rate.
Selected a VAT rate for all your products? Click Next.
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!