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VAT Return preparation for One Stop Shop and Import One Stop Shop - UK

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Summary

How to run One Stop Shop (OSS) and Import One Stop Shop (IOSS) reports in Sage 50 Accounts v27.2 and above.

Description

Use the One Stop Shop (OSS) and Import One Stop Shop (IOSS) reports to manage your OSS and IOSS sales transactions. Run these reports to provide information to produce your EU VAT Returns.  

NOTE: When using OSS/IOSS Reporting, use Foreign Trader to simplify the reporting process. 

Resolution

How OSS/IOSS affects your UK VAT Return

When you process under the OSS or IOSS scheme, certain OSS/IOSS transactions may appear in boxes 6 and 8 of your UK VAT Return.

NOTE: This doesn't affect how you process your UK VAT Return and you must continue to submit your UK VAT Returns as normal. 

Run your OSS/IOSS reports

When it's time to produce your quarterly OSS VAT Return or your monthly IOSS VAT Return, run your OSS/IOSS reports to identify the following:

  • OSS/IOSS values for the return period, and
  • Any corrections to the values for the previous period

Run reports for the return period

To get the values for this return period, you need to run the relevant summary report for the scheme you're using.

  1. Click VAT then click Reports.
  2. Click OSS IOSS transactions then select the summary report for the scheme you're using.
    For example, IOSS Transactions (Summary).
  3. Click Preview, enter the return period start and end dates then click OK.
  4. For future reference, print or save the report, to do this click Print or Export.
  5. To close the report, click Close.

TIP: To help you identify corrections at a later date, we recommend that you follow the above steps to print or save the detailed report for your scheme, for example, IOSS Transactions (Detailed).

Identify previous period corrections

When completing your return, you must also declare any corrections you've made in previous periods. Any correction only needs to be declared once.  

  1. Run your summary report for the previous period you want to check.
  2. Compare this to the original report you used to complete the previous return.
  3. If any totals differ, run the detailed report for the previous period.
  4. Compare this to the original detailed report from the previous period to identify the correction.
  5. If you haven't already declared this correction, you should declare it on the return for this period.  

Exchange rates

When using Foreign Trader, the reports show the values in the destination country currency. If you need to convert your values to a different currency for your return, you should do this manually using the European Central Bank exchange rate on the last day of the reporting period.

When you’re not using Foreign Trader, manually convert foreign currency transactions to show the VAT value in the destination currency on the transaction date. If a further conversion is needed for your return, use the European Central Bank exchange rate on the last day of the reporting period.

Post your OSS/IOSS VAT transfer journals

When you post an OSS/IOSS transaction, the VAT element isn't posted to your normal VAT liability nominal code. Instead it's posted to one of the following nominal control accounts depending on the scheme you're using:

  • 2205 - Union OSS Tax Control Account
  • 2206 - Non-union OSS Tax Control Account
  • 2207 - IOSS Tax Control Accounts

Once you calculate the VAT due for your OSS/IOSS VAT Return, you need to transfer that amount from the relevant control account to your VAT liability nominal code. This shows the VAT amount pay to the tax authority you're registered with for the scheme.

NOTE: Post your VAT transfer journals in your base currency.

  1. Click Nominal codes then click Journal entry.
  2. In Reference, enter a reference, then in Posting Date enter the current date.
  3. Enter the details to record the VAT liability transfer. In this example we are using the IOSS scheme and have a liability of £1000.00:
    N/C Name Details T/C Debit Credit
    2202 VAT Liability IOSS VAT liability T9   1000.00
    2207 IOSS Tax Control Account IOSS VAT liability T9 1000.00  
  4. Click Save then click Close.

Make your EU VAT liability payment

Once you make your OSS/IOSS VAT liability payment to the relevant tax authority, record this as a bank payment. This reflects the payment in your bank account, and also reduces the balance in your VAT liability account.

  1. Click Bank accounts, click Payments then click Bank payment.
  2. Complete the Bank Payments window as follows:
    Bank Date N/C Details Net T/C Tax
    Bank account Payment date 2202  VAT Liability 1000.00 T9 0.00
  3. Click Save then click Close.