Posts by Henry Edwards33

Ethan Bailey18 said:But I enter all those purchases into the standard purchase journal following my auditor's instructions. At the end of the month, the only thing used for the sales tax return is a single printout from that journal; everything else is just supplemental documentation.

Actually, those are specific records that need to be tracked in their own numerical sequences. They should physically be kept separate from your regular sales logs.

By the end of the month, everything shows up in that month's master sales book; they're just categorized into different columns.

How you handle this in your software really depends on what kind of system you're using. Personally, I maintain several specialized sub-ledgers where I record each specific type of transaction. For example, I have separate books for domestic sales, import tax calculations, and services provided by out-of-state vendors.

Drew Rogers6 said:Lili, you still fired up? Did you go settle things with the IRS yet? 🙂

They haven't reached out yet, so I'm assuming it's all settled. 😁

Ethan Bailey18 said:Software can be programmed to do just about anything, but the regulations strictly mandate using a special record.

But that’s exactly what it is—a specific record of incoming invoices for every category required by law. I don't see where the confusion lies. 🤷

We aren't talking about one giant master ledger; we're talking about a specific set of records for X or Y, which already exists.

Betty King7 said:If we’re talking about this specific margin tax procedure, where does the entry actually go? Does it hit the general ledger, or perhaps the VAT register? Or is the category itself exempt from taxation altogether?

You have to keep a separate set of records—specifically for the margin tax.
In my accounting software, everything is logged directly within that specific module. It doesn't even touch the standard sales tax filings.

ruggedmaker2 said:Ahaaa. 👍

The way I see it, your vendor is probably using some kind of special margin scheme for their taxes—it looks like they’re following those specific VAT regulations regarding profit margins.

Look, I haven't actually dealt with a situation quite like this in my own work, so I haven't gone down the rabbit hole of studying the fine print, but that's my gut feeling on how it's playing out.

When a business uses that specific margin tax procedure, they're required to note it right on the invoice. It's not like a standard tax credit transfer where you can sometimes get away without a disclaimer; if we're talking about margins, the instructions have to be explicitly stated.

And yeah, goods handled under that margin tax method don't end up being reported on the standard sales tax filings or the summary returns.

Drew Rogers6 said:@ Henry Edwards33
Man, who pissed you off this bad? 🤔
They didn't call me to fix some error I made—that wasn't it. They actually reached out because they wanted to use my paperwork to make it easier to hunt down a supplier who conveniently "forgot" to report their sales. My filing was perfectly fine.

@ Vejanka
It’s the exact same story with me. This agent calls me up and says, "Hey, looking at your VAT regulations filings, you reported something like $167, but the EU suppliers have you listed under ID $133." Then she asks if I can dig up an invoice from $33 so she can go hammer that supplier and demand to know why they haven't reported the sale yet. I'm exaggerating a bit here, but you get the point, right? 😉

Taxpayers. 🙂

I did everything by the book. I sent over all the paperwork and now I’m just sitting around waiting to hear what their next move is. It’s like watching a slow-motion train wreck—they actually admitted we didn't mess anything up, yet they still have the nerve to insist that I'm the one who needs to fix it.
Maybe I’m just being stubborn, but I refuse to go back and fix those old sales tax filings. I know I didn't make a mistake, but here we are at the end of 2014 and I've still got all that 2013 paperwork hanging over my head. Honestly, you can't blame me for being pissed off about it. 😢

ruggedmaker2 said:Betty King7, I totally lost my train of thought following your story 😁
Is the vehicle brand new or used? And did someone already handle the VAT regulations on it?
Maybe my brain is just turning to mush because I'm starving—I haven't had a single bite to eat since this morning 😁

Eat, Zenon. Everything gets a whole lot easier once that final paycheck hits. 😬

Drew Rogers6 said:Maybe just give the Germans a call and ask? If they're using some special margin taxation scheme, it should be clearly stated on the invoice—same goes if it's a reverse charge situation. Honestly, you could try playing dumb and reporting nothing, but if they file their end, the IRS is going to come knocking on your door to reconcile everything. I dealt with this once where I reported it, but the seller in the USA didn't, and I ended up getting flagged. They cross-reference all this stuff, I think on a quarterly basis. Personally, I'd try filing it for October (assuming they're currently in the IRS database) and if it doesn't go through, hey, you haven't lost anything.

Why should I be the one bending over backwards to fix this when they should be fixing it with me?
Who messed up here? They did. So, let them deal with the fallout.

I don't see why I should have to bow to their mistakes. 🤷

When I make a mistake, I own it and fix it. But in this case, the error lies entirely with them; they failed to verify the buyer in the IRS system and shifted the tax liability without any legal basis to do so. That is the most basic rule of the sale: you verify whether you can actually transfer the tax obligation before you move forward.

If we go the route of "reconciling," since they filed and we didn't, the IRS is just going to call us and demand a statement. We'll end up explaining that we bought a commercial vehicle but didn't have a tax ID yet, and there was no record of acquisition because the supplier couldn't legally transfer the tax burden. They’ll cross-reference the date we received our tax ID against the invoice date.
The other party will face the exact same scrutiny. It'll be determined that the Germans should have charged their own sales tax, meaning they’ll have to correct the error, pay it into the treasury, and then scramble to try and claw that money back from the buyer.

I absolutely refuse to play ball with someone who screwed up. If I’m going to adjust anything, I’m doing it to make things right, not to accommodate a blunder.

And yeah—I’m pissed off. 🙂

Betty King7 said:When exactly does an intra-European Union acquisition of goods trigger a VAT liability and the subsequent reporting obligation? How on earth are we supposed to determine the fair market value for goods or services? And who, exactly, is going to be auditing the accuracy of the tax base in business dealings between entrepreneurs within the European Union?

The duty to account for VAT during an intra-European Union acquisition arises at the moment the invoice is issued. If no invoice has been issued by then, the obligation kicks in no later than the fifteenth day of the month following the one in which the taxable event occurred.

A taxpayer acquiring goods within the European Union reports this transaction via their standard VAT return and through the specific report for acquisitions of goods and services from other European Union member states. These acquisitions are reported in the returns corresponding to the accounting period in which the invoice was issued. In cases where no invoice has been received, the acquisition is reported in the returns for the month immediately following the month the taxable event took place.

Determining market value becomes necessary when goods or services are provided to individuals with family ties or other close personal connections to the taxpayer. This also applies when there are financial or legal links involved—think employer-employee relationships, family connections, or ties based on membership, management, or ownership.

Generally, for intra-European Union acquisitions, the price stated on the invoice is accepted unless there is concrete evidence that the amount is incorrect. The tax base for an intra-European Union acquisition is determined using the same methods applied to domestic supplies of those same goods. The IRS will utilize all available business documentation to conduct audits regarding acquisitions of goods from other European Union member states within the US.

I found this information on the IRS website. My invoice was issued at the end of October, but I didn't receive it until November, and everything regarding the vehicle was being finalized in November—technically speaking, everything else too. Does this mean I can record the vehicle purchase in my November VAT returns once I finally receive my VAT identification number? Also, is it mandatory for the IRS to stamp the invoice? Can I just take it to them at the end of the month to get some kind of official confirmation?

You can't book that invoice in November.
At the moment the acquisition actually happened, you weren't verifiable in the VIES system, which means the Germans weren't legally allowed to transfer the tax liability over to you.
As a rule, you need to have a valid VAT ID at least 15 days before delivery or acquisition; without it, they can't shift the tax burden onto your books.

The Germans messed up because they should have charged their own local sales tax. It’s a headache, I know. But you didn't technically have an "acquisition" to report. You had a purchase in Germany, and the fact that they failed to charge you tax—even though they were supposed to—is their mess to clean up, not yours.

You mentioned it’s a used vehicle. Was this handled under the special margin scheme for used goods?

ruggedcyclist74 said:I think I might actually go through with that little suggestion from Brenda Chase3...
a tea where the alcohol is just cleverly disguised :-)))

it’s such a clever combination... I'm feeling quite cheerful already...🎉

🤣

You’re not exactly losing it either. 😉

It's been a while. Did you ever make it out to Hawaii? 🙂

In the business module—once those receipts hit, they roll straight into your KPI 😉

Just put out some booze and suddenly everyone shows up. It’s honestly pathetic 😬

Is there anything that isn't sweet nowadays? 😁

Richard Howard55 said:Just head over to the IRS website and check out their publications; you'll find everything you need for freelancers there.

I think the question is whether you can actually see how a specific small business is performing—like, seeing their actual revenue, expenses, and net profit.

That kind of data isn't public.

My bad if I completely missed the mark there. 😁

Carol Price4 said:Even if it's a working weekend—that’s no excuse to skip the brews... here's a quick pic for our girl Henry Edwards33...😁

I appreciate 👋

Just got back from my workout 🙂

You really went overboard with the l stuck 🤣on me, didn't you?

Some guy on another forum told me my username looks like a damn barcode. 😬

Weekend 👋

Crack open a beer 😁

Jessica Grant56 said:Oh man, I honestly thought he wrote "bloodsucker" instead of "coffee lover"—my brain just totally skipped a beat there. Still, I guess I’ll have to reach out and ask him if there's any truth to what he's saying, or if I just completely misread the situation.

P.S. This thread is actually pretty great—you can even poke a little fun at the moderator without getting in any trouble!

Yeah, teasing a moderator is way too easy. ☕

I’ve officially reached the point where I just don't have the energy to care anymore. ☕

Thanks, devil.

Right now, I’m just staring down a mountain of paperwork I need to organize before I sign off on an offer.

From what I can gather regarding the leasing requirements, any space being rented out is going to need this certification. It’s valid for ten years, which isn't a bad deal if you think about it.

But here’s what’s bugging me: what happens when a business just leases a single office within a larger building? I’m assuming they'd have to certify the entire property instead of just their own little corner, right?

I think this topic might actually be relevant for this subforum too, especially since so many businesses operate out of leased office spaces or even just run out of an owner's residential condo.

I’ve started looking into getting these certifications for some commercial buildings, apartments, and rental units, and honestly, it’s been a headache of conflicting explanations and shifting deadlines. I even saw the Department of Commerce changing their guidelines on their website mid-process.
What’s currently in effect—and what I found useful—is this breakdown regarding deadlines and FAQs.

I’ve seen plenty of ads promising to handle the certification process, but the "teaser" prices they advertise rarely match the actual quote you get once you send them a specific inquiry.

So, what’s your experience been like with this?
How much of a nightmare is it to actually secure one of these certificates?
Is there anything specific I should be watching out for?

Any advice for us total rookies? 😁

Is anyone else having issues with the IRS website?

I keep getting this annoying error message

•Unable to submit form; please try again. If this error persists, please contact customer support.

I’ve already run the checks through the portal—these are my sales tax filings—but every time I hit submit, I get slapped with this warning. After five tries, it finally went through, but still. 🙂

Looks like the tech team at the Treasury is messing with the app again. 👏

A killer dinner and a glass of decent wine can fix just about anything. 😉

You won't believe this, but I actually just brewed myself a cup of coffee. It would definitely hit different if I were sitting somewhere by the coast, though. 😁