Doing business with USA member states
in Business, Accounting & Taxes ·
David Green642 said:Can anyone confirm if I'm getting this right;
1. For an incoming invoice where the tax liability is transferred, do I book that into a specific account for foreign accounts payable?
2. An incoming invoice from abroad—say, Canada—where no tax was charged, the currency is convertible marks, and there’s no customs declaration involved. Does this go into a specific account for non-resident deliveries? Since the invoice amount is in foreign currency without tax, I'd use the mid-market exchange rate on the date of issuance or payment, then calculate the tax based on the standard US rate for whatever was purchased, right?
3. An incoming invoice from Canada, but this one has a customs declaration and is in Euros. Does this get booked under a specific account for import VAT, using accounts like 6 or 4 /221 and 2470 for customs liabilities?
4. An incoming invoice from a US state—let's say a vendor in a neighboring state—where the currency is USD, obviously. I check their status via the IRS; if they're legit, does it go into a special account for interstate goods or services? If tax is shown on the invoice, do I just book the invoice amount at the current exchange rate, apply the local US tax rate, and then try to claim a refund through some sort of VAT refund system?
5. An incoming invoice from a US state, currency is USD, I check with the IRS, they're legit, so it goes into the special account for interstate goods/services—but this time, NO tax is shown on the invoice. Do I just book the invoice amount at the exchange rate and categorize it as non-taxable?
And what happens if those US invoices don't mention a transfer of tax liability, no tax is charged, but the company is definitely registered with the IRS?
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