Sage has released a new update to their software to allow for changes in legislation coming in from 1st July 2021. From this date, if you trade with consumers in the EU then you need to be able to report on the tax using MOSS, OSS and IOSS ...
MOSS is the Mini One Stop Shop which allows you to account for VAT normally due in multiple EU countries in just one country. It is commonly used to account for digital services. From 1st July the scope for VAT MOSS is being widened to allow for the reporting of more supplies and is being termed more simply as the VAT One Stop Shop (OSS).
A new import scheme called Import OSS (IOSS) is also being launched to cover the distance selling of goods imported from non-EU areas with a basic value of less than 150 EURO. This blog post explains this all in more detail.
The Sage update assists you in producing the figures needed for this VAT reporting. Once the update is installed you will need to go to Help/About and check under features enabled that OSS/IOSS reporting is set to YES.
You will also need to ensure you have the VAT codes set up in your Configuration/Tax Codes area in the Settings menu.
Finally, ensure you change the default codes where appropriate for customers who fall under the new reporting requirements to the new codes you have created in the previous step. Also ensure these are being pulled through correctly into your invoices and sales orders. There is more support on this in this article. Do note that you should use a different code for goods and services as they affect your VAT return differently.
If all this just seems a little too confusing and you need help getting your Sage 50 software upgraded and all setup, do get in touch as we are able to help remotely with Sage upgrades and hand-holding sessions to get everything all working correctly.
If anything I've written here resonates with you, call me on 01604 420057 and let's see how we can help you.