Tax Code Provisioning in One Stop Shop (OSS)

SuiteTax creates one OSS tax code per rate type that applies to all EU countries, with the rate based on the customer's country. This tax code does not contain any information about the tax rate. Instead, the tax rate is determined on the transaction based on the combination of the tax code and the customer's OSS Country. For example, Germany (DE) is the Member State of Identification and OSS(DE)_SR is the OSS tax code. The same OSS tax code shows as 23% on a sale to a Portuguese customer and as 19% on a sale to a customer in Romania.

Since November 2022, SuiteTax Engine automatically provisioned the special reduced rate of 5% for Spain which was applicable to supplies of gas (and supply of electricity in very specific situations) and was valid till December 31, 2023. Please note that to keep the continuity of the general Spain super reduced rate of 4% and all the settings customers might have for this tax rate/code in NetSuite, this 5% rate was classified as a “Super super reduced rate” (even if higher than the general super reduced rate of 4%).

Since January 2024, SuiteTax Engine automatically provisions the special reduced rate of 12% for Malta which is now applicable to securities and credit management, certain health care services, and some other services.

Please note that to keep continuity of the general Malta reduced rate of 7 % and super reduced rate of 5% and all the settings customer might have for this tax rate/code in NetSuite, the new 12% rate is classified as “Super super reduced rate” (even if higher than the general reduced and super reduced rate).