Posts by Brian Kern70

Jessica Doyle2 said:Passenger transport services are an exception to the standard B2B principle and are taxed based on where the transport actually takes place, proportional to the distance traveled. This rule regarding the place of taxation remains identical regardless of whether the service is provided to a business customer—meaning a VAT registrant—or to a private individual who is not a business owner.
1) Correct.
2) It is correct that up to the border, the service is subject to US Sales Tax; this portion through Canada should be exempt (though I am unsure how that would be treated—perhaps as an export delivery??)
3) This transport service is carried out across segments of a route that pass through several European Union member states.
The place of supply for transport services is where the transport occurs, proportional to the distances covered.
The transport moves through segments in the US, Canada, Austria, and Germany, and each of these nations has the right to collect Sales Tax on the transport fee proportional to the segment of the trip within their borders.
The price of the ticket paid by the passenger essentially includes US, Canadian, Austrian, and German Sales Tax for the transport service, allocated to the specific segment of the journey in each respective country.
Countries that have established a system for collecting Sales Tax on international road passenger transport services do so by requiring foreign carriers performing transport on a segment within their territory to register as taxpayers with a specific IRS designated for such taxpayers.
They then pay the tax for the segment in that country, just as local taxpayers based in that country would.
They file tax returns and maintain the right to deduct input tax related to the costs of performing transport services within that country (for example, input tax on fuel, vehicle washing, repairs, parking, etc.).

Regarding sub-invoicing, I don't believe you can bypass the rule, because it doesn't matter who was driving; what matters is *what* was being transported—in this case, passengers in road transport (and the law defines this quite clearly).

4) International passenger transport by sea is exempt from Sales Tax under Section 43, Paragraph 2 of the Value Added Tax law.

Thanks for the replies!

Jessica Doyle2 said:Passenger transport services are an exception to the standard B2B principle and are taxed based on where the transport actually takes place, proportional to the distance traveled. This rule regarding the place of taxation remains identical regardless of whether the service is provided to a business customer—meaning a VAT registrant—or to a private individual who is not a business owner.
1) Correct.
2) It is correct that up to the border, the service is subject to US Sales Tax; this portion through Canada should be exempt (though I am unsure how that would be treated—perhaps as an export delivery??)
3) This transport service is carried out across segments of a route that pass through several European Union member states.
The place of supply for transport services is where the transport occurs, proportional to the distances covered.
The transport moves through segments in the US, Canada, Austria, and Germany, and each of these nations has the right to collect Sales Tax on the transport fee proportional to the segment of the trip within their borders.
The price of the ticket paid by the passenger essentially includes US, Canadian, Austrian, and German Sales Tax for the transport service, allocated to the specific segment of the journey in each respective country.
Countries that have established a system for collecting Sales Tax on international road passenger transport services do so by requiring foreign carriers performing transport on a segment within their territory to register as taxpayers with a specific IRS designated for such taxpayers.
They then pay the tax for the segment in that country, just as local taxpayers based in that country would.
They file tax returns and maintain the right to deduct input tax related to the costs of performing transport services within that country (for example, input tax on fuel, vehicle washing, repairs, parking, etc.).

Regarding sub-invoicing, I don't believe you can bypass the rule, because it doesn't matter who was driving; what matters is *what* was being transported—in this case, passengers in road transport (and the law defines this quite clearly).

4) International passenger transport by sea is exempt from Sales Tax under Section 43, Paragraph 2 of the Value Added Tax law.

I can easily sidestep that rule by working under someone else's name and on their account. In this scenario, the carrier would operate under their own name and handle the billing directly with the German client, while I simply invoice my carrier a commission as a broker. Basically, I'm just playing middleman for the cut!
So, here’s what’s eating at me: if I’m running my own business and I hire this carrier, they’re going to slap me with an invoice featuring five different tax rates. Does that mean I’m stuck following those strict German-style accounting rules and calculating everything on my own outgoing invoices, even though I didn't actually drive the route myself? And do I also have to register my business in every single one of those states just like he does? I'm just weighing my options here...

Jessica Doyle2 said:Passenger transport services are an exception to the standard B2B principle and are taxed based on where the transport actually takes place, proportional to the distance traveled. This rule regarding the place of taxation remains identical regardless of whether the service is provided to a business customer—meaning a VAT registrant—or to a private individual who is not a business owner.
1) Correct.
2) It is correct that up to the border, the service is subject to US Sales Tax; this portion through Canada should be exempt (though I am unsure how that would be treated—perhaps as an export delivery??)
3) This transport service is carried out across segments of a route that pass through several European Union member states.
The place of supply for transport services is where the transport occurs, proportional to the distances covered.
The transport moves through segments in the US, Canada, Austria, and Germany, and each of these nations has the right to collect Sales Tax on the transport fee proportional to the segment of the trip within their borders.
The price of the ticket paid by the passenger essentially includes US, Canadian, Austrian, and German Sales Tax for the transport service, allocated to the specific segment of the journey in each respective country.
Countries that have established a system for collecting Sales Tax on international road passenger transport services do so by requiring foreign carriers performing transport on a segment within their territory to register as taxpayers with a specific IRS designated for such taxpayers.
They then pay the tax for the segment in that country, just as local taxpayers based in that country would.
They file tax returns and maintain the right to deduct input tax related to the costs of performing transport services within that country (for example, input tax on fuel, vehicle washing, repairs, parking, etc.).

Regarding sub-invoicing, I don't believe you can bypass the rule, because it doesn't matter who was driving; what matters is *what* was being transported—in this case, passengers in road transport (and the law defines this quite clearly).

4) International passenger transport by sea is exempt from Sales Tax under Section 43, Paragraph 2 of the Value Added Tax law.

Fine, I was asking this because I want to know if it's now classified as international transport within the European Union, since we're basically part of the same single market now, right?

I’m looking for some clarity on transfers/transportation:

Bus Transfers:

1. A transfer performed within the US is billed at the standard 25% rate;
2. A transfer from the US to the border near Mostar is tax-free once you cross that line;
3. For a transfer going all the way to Berlin—it's 25% in the US, but once you cross the border, you have to follow their local rates, which might require registering your business in those countries;
Can I dodge Option 3 by outsourcing the transfer to another carrier and just billing a commission? Basically, acting as an agent for someone else's account? Or if I handle everything under my own name and the carrier just re-bills me with different rates depending on the country, am I still stuck having to register in every single European Union country?
Does all of this apply to both B2B and B2C?

Sea Transfers from the US to somewhere like Venice? Up until now, taxes applied within the US, but it was tax-free in international waters. Is this transfer tax-free now, or what?

Thanks!

I want to run through a specific scenario involving acquisitions within the European Union just to make sure I’ve actually got this down:

- An American business, let's call it Company A, buys $10,000 worth of goods from Company B in Germany (which is also a VAT-registered entity).
- The shipment arrives with an invoice and a delivery note; on the invoice, the German company charges the full $10,000 without any sales tax (they mark it as "reverse charge" to indicate they aren't collecting tax because we'll handle the tax liability here in the States).
- To be valid, the invoice needs to list both the American and German VAT IDs, and we have to verify those IDs in the VIES database to ensure they're legitimate.
- We record the invoice at, say, $25000 (depending on the exchange rate), and during that month, we account for both the input credit and the tax liability for $6250, so everything nets out on the monthly tax return.
- Aside from having the "reverse charge" label and both companies' VAT IDs, is it true that we can only claim the input credit if the invoice arrives by the 20th of the following month? In other words, if the invoice doesn't show up or we miss the filing deadline for the month the goods were delivered, are we barred from claiming that tax credit in future periods?
- Once that's settled, if we sell those goods here in the US, we just charge the standard sales tax on our outgoing invoice like usual.

Here I am.
The first photo was taken back in July, and the second one is from New Year's Eve.
From July through November, I cut out bread and sweets entirely, though I’ll admit I cheated more often than I should have (mostly with beer, pizza, and fast food). Since November, I’ve been hitting the gym for an hour to an hour and twenty minutes, followed by about 40–45 minutes of running or using the elliptical.
Unfortunately, that spare tire around my waist is still hanging on; I just can't seem to shake it.
For context, I'm 6'3". Right now I'm sitting at 207 lbs, and trust me, you don't want to know what I was at before this.😁
I'm open to any advice, critiques, or whatever else you've got.

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