Enable OSS
Go to Settings and select Organization Profile.
In the Private VAT section, select EU destination country tax.
Review the confirmation modal and click Save.
Once enabled, an OSS return is automatically created for the current quarter and the OSS Returns page appears under Reports.
Create an OSS invoice
OSS applies automatically when all of these are true:
The customer is in an EU member state different from yours
The customer does not have a VAT number (private consumer)
Go to Sales and select Invoices.
Click Create Invoice.
Select an EU private consumer as the customer.
Choose a Supply Type from the dropdown that appears:
Distance Sales - physical goods shipped cross-border
Electronic Services - digital services (software, e-books, SaaS)
Other Services - uses your domestic VAT rate instead of OSS
Add your line items. The tax column automatically shows the destination country's VAT rate.
Complete and Approve the invoice.
The VAT is posted to the OSS VAT Control account (2092), keeping it separate from your domestic VAT.
Once enabled, an OSS return is automatically created for the current quarter and the OSS Returns page appears under Reports.
Set a default supply type on a product
Go to Products and edit a product.
Set the Supply Type field to Goods or Services.
Click Save.
Review an OSS return
Go to Reports and select OSS Returns.
Click on a return to open it.
A return shows an interactive EU map highlighting countries where you made sales, a country summary grid, and a transactions grid with all individual transactions.
After a submission, the return shows the total VAT due, filing period, number of countries, and a link to the journal entry.