One-Stop-Shop - How to map the regulation in Xentral

The One-Stop-Shop procedure will be the basis for the implementation of the EU VAT reform as of July 01, 2021. For B2C transactions within Europe, a uniform delivery threshold of €10,000 will apply. As soon as goods totaling 10,000€ are delivered to other EU countries, the tax rate of the country of destination must be shown and paid in all EU countries.

In xentral you can map this via the module delivery threshold. We have extended the module accordingly so that the sum of the sales is formed over all EU countries. Basic information about this module can be found in the manual. Xentral will provide you with an update shortly before the 01.07., with which the new functionality of the module will come into effect. You can change all settings before that. If you currently already exceed the threshold of 10.000€ total turnover, the new functionality will be used from the update on.

Each EU Member State has its own electronic portal where merchants based in that country can register.

The One-Stop Shop allows merchants to declare and pay for all their sales within the European Union centrally in just one EU Member State (and not all 27).

This single declaration includes all sales of goods in the EU Member States along with the incurred VAT broken down to the individual countries. Payment of the resulting VAT liability is also made to the OSS.

A key task of the One-Stop Shop, which in Germany is the Federal Central Tax Office, BZSt, is what is known as clearing.

Clearing refers to the disbursement of the VAT declared by the Xentral’s Customers and paid to the One-Stop Shop in the EU Member State in which the sales transactions took place.

The payment of VAT to the EU Member States is based on the submitted OSS declarations.

First, decide together with your tax advisor whether you want to apply the destination country tax already from the first order or only from the threshold of 10.000€. You can map both scenarios in xentral.

Functionality of the module

Summation over all EU country delivery thresholds

The module has been extended in scope. Now xentral forms a grand total across all EU countries instead of treating them individually like before or like non-EU countries. Setting the delivery threshold of each EU country to 10,000 € is only to avoid that a country is triggered too early or if you only serve one EU country. The value can also be set to 1€ if you know that you want to work directly with the local tax rates.

Xentral calculates the sum of all B2C sales to all EU countries. As soon as 10,000€ is reached, the delivery wave for all EU countries with created delivery thresholds will be triggered simultaneously.

You can find out how high your current turnover is by filtering for yes in the EU column. You will then see the total for all (EU) countries below the "Current turnover" column.

If you receive an order for the first time from an EU country for which you have not yet defined a delivery threshold, the following message appears:

Note

Deleting/canceling an invoice does not reduce the Current Sales counter. In exceptional cases, you can reset this manually when you cancel an invoice to this EU country. If you delete a delivery threshold by mistake, you have to create it again and manually fill the Current Sales field with the current value.

B2C Business

Xentral automatically detects whether an order or invoice should be treated as an end customer transaction. The decisive factor is whether a VAT ID is stored in the document. As soon as no VAT ID is stored, it is considered as a B2C transaction.

If you enter a VAT ID here, the turnover is considered a B2B transaction. This turnover is taken into account for the regular recapitulative statement and is irrelevant for OSS.

Question: When exporting the CSV file for DATEV, the country is not transferred. Country of origin and country of destination are missing. Is there a solution for this?

Answer: Was the export done from xentral? If so, please contact the customer service team via the xentral ticket system, they will be happy to help you. If you are not a customer yet, please contact our sales team at: kontakt@xentral.com.

Question: Isn't the storage country also relevant?

Answer: Yes, exactly. The country of storage is used to determine whether it is a cross-border delivery or a domestic delivery (only one in a country other than Germany).

Question: If you do the accounting yourself with DATEV, from whom must the data be played into DATEV? From taxdoo, from xentral or from both? How do you solve this so that all data is complete and not duplicated in DATEV?

Answer: Both is possible, the best way is to decide which is more convenient for you - the export from xentral to DATEV or from taxdoo to DATEV.

Question: We have already implemented OSS with xentral. At what point will xentral automatically detect if there is a different delivery address with different delivery country and therefore different VAT? So far we have only found the workaround using "Do not apply delivery threshold".

Answer: The described workaround is the correct solution here for now, yes.

Question: But customers do expect an invoice, don't they?

Answer: The only issue here is that for transactions reported via the OSS, the legal obligation to issue invoices does not apply. This means that you are not obliged to issue invoices for B2C distance sales. The difference is that for reasons of customer satisfaction, etc., you can still issue an invoice to the customer.

Question: Do I understand this correctly now? There is no mini-one-stop store procedure since July 01, 2021 more? In the Elster (tax recording sheet) namely still included!

Answer: The Mini One Stop Shop (MOSS) was previously used to report cross-border digital services to private customers. The MOSS will be integrated into the One Stop Shop (OSS) as of July 01, 2021. Thus, as of July 2021, there will no longer be a separate MOSS process and the OSS will become the single point of contact for cross-border distance sales and digital services.

Question: Do I have to use OSS or can I choose to report everything through the local tax office?

Answer: You may continue to report everything via the local tax office. However, you must make a "one-time decision", so to speak; mixing is not possible.

Question: I don't understand why taxdoo determines the tax rates using HS codes, because: when the invoices are transferred to taxdoo, the tax rate must already be known, i.e. before the invoice goes to taxdoo, the correct tax rates must already be known in xentral for the invoice.

Answer: xentral does not transfer invoices to taxdoo, but already the order documents.

Question: Does taxdoo only pull the foreign invoices from xentral and by which marker does taxdoo/xentral notice if a customer order comes from EU or D?

Answer: The delivery address including the country is stored in the order document, so that this information is transferred from xentral to taxdoo. All orders can be transferred, regardless of the delivery country.

Question: If only taxdoo determines the correct tax liability, how is it ensured that the net sales in xentral are correct?

Answer: The transfer of orders from xentral to taxdoo already takes place before the invoice is created in xentral.

Question: If the delivery threshold is exceeded, does the country of storage matter as long as it is from EU to EU?

Answer: Exactly, then the country of storage does not change anything.

Question: Do manual changes still have to be made for the DATEV export or is the logic automatically stored via the 3-digit posting keys?

Answer: xentral also transfers account assignments as well as posting keys and sets as much as possible in advance in DATEV. Depending on the exact requirement, however, more may have to be set in DATEV. It is best to simply try this out.

Question: We have a data transfer problem between xentral and taxdoo. The data is transferred from xentral to taxdoo based on the delivery date. However, in the taxdoo transaction report, the order is then shown with order date. This leads to the fact that orders that have been ordered in June, for example, are only transferred in July and are thus posted in June in the taxdoo transaction report. Thus the past is changed, which is not allowed according to German law.

Answer: It is best to contact us via the Xentral support. The colleagues from the customer support team will support you.

Question: We deliver from Austria throughout Europe and have already exceeded the delivery threshold. Now we want to tackle Amazon PAN EU. Are there any tips or support for this?

Answer: PAN EU is an alternative solution from Amazon to OSS, these cannot be mixed.

Question: Are the HS codes of the items transferred cleanly to Shopify?

Answer: Tariff codes can be transferred from xentral to Shopify. With the help of free fields you can export all possible codes to Shopify. The determination of tax rates based on customs tariff numbers can be done by taxdoo.

Question: We are currently with Hellotax with our Amazon Pan EU! If I were to switch to taxdoo, what do I have to do and consider?

Answer: Switching from other providers to taxdoo is very easy. If you already have valid VAT IDs in other EU countries, taxdoo will initiate a power of attorney transfer process. Depending on the local tax office, this can take between 2 and 3 months. If you switch from another provider to taxdoo, you should ideally define a point in time in the future when taxdoo should take over the reports. Always pay attention to the cancellation period of the current provider, so that you do not pay twice for the services in the end. The process of transferring the power of attorney is free of charge at taxdoo. Our customer support will prepare all important documents for you to sign and then forward them to the respective local tax office - we do not need any information from the previous provider for this.

Question: We sell EU-wide, have a warehouse in DE and our prices are only in EU and have a single tax rate for all products. We can do well with just xentral alone, right?

Answer: Here probably the delivery threshold app of xentral is sufficient for mapping OSS, yes. taxdoo could be helpful in preparing the data for accounting. The proof of the pudding is in the eating!

Question: Should B2B sales be excluded from export to taxdoo as a matter of principle?

Answer: No, they must. They can be excluded if they are mapped via a separate project in xentral. In principle, however, every order can be transferred to taxdoo.

Question: Does xentral work well with amainvoice?

Answer: Yes. xentral has an interface to amainvoice.

Question - Do I Register in each EU country of destination or do reporting via the One-Stop Shop?

In individual cases, the new regulation may result in a substantial increase in registration and tax declaration obligations in the EU Member States.

In principle, however, Xentral’s Customers have a choice.

They can either register for VAT in each of the 27 EU Member States where they sell goods, regularly declare their sales there, and pay the VAT to the local tax authorities of the EU Member State.

Or they can take advantage of a new option, the One-Stop Shop (OSS) or electronic portal that will serve as a single point of contact after July 1, 2021.

The One-Stop Shop option can only be used in all EU member states in total. It is not possible to pick and choose, i.e., mix distance sales registrations in some countries and simultaneously use the OSS in other Member States.