Home › Richard Howard55 › Posts

Posts by Richard Howard55

254 posts shown.

Doing business with USA member states in Business, Accounting & Taxes · Jul 8, 2013

Carol Price4 said:Section 41.
(1) The following shall be exempt from sales tax:
a) the delivery of goods where the seller—or someone acquiring the goods on their behalf—ships or transports them from the US to another country to a different taxable entity or a non-taxable legal entity acting as such in that other country.

I’m honestly going a bit stir-crazy reading all this legal jargon—can someone please tell me if I have this right?

- based on that section above, if a US business registered for sales tax receives graphic design files via email from an overseas vendor, then uses those files to run a print job (through some other local contractor), and the customer picks up the goods right there to ship them over to Europe... do I issue the invoice without sales tax and just mark it as "reverse charge," or what?

First, let me rule out some possible errors since I don't really know the subject you're writing about.
a) I interpreted "graphic prep via email" as an order (with a list of what they want delivered).
b) the second domestic entrepreneur doesn't matter
c) it doesn't matter where the buyer picks up the goods
d) we are talking about goods

The invoice is issued without Sales Tax (FAA) citing Section 41, para 1, point a)
without a reverse charge note.

Honestly, I never quite grasped this reverse charge thing (just so I could always identify when to use it and when not to, without making mistakes).
I asked the exact same question as you at a seminar and was told this isn't an example where you'd include a reverse charge note.

Doing business with USA member states in Business, Accounting & Taxes · Jul 8, 2013

Go ahead and take a breather, then maybe write up a few thoughts about that seminar. You had some pretty interesting examples, and I guess I’d actually be curious to see how that all works out. 🙂

Virtual Coffee Break - Chat in Business, Accounting & Taxes · Jul 7, 2013

Jessica Grant56 said:You can have him, as long as you promise to keep him far away from me!!

Haha! I just noticed how many red cards were handed out. 🙂

☕☕

Virtual Coffee Break - Chat in Business, Accounting & Taxes · Jul 7, 2013

ruggedcyclist74 said:Good grief, I am absolutely floored... 😲

I stumbled upon this thread buried at the bottom of the third page... 😲

Is nobody here actually taking a coffee break? For heaven's sake, take a moment to breathe... besides, half of these new updates aren't even making sense to us yet anyway. :-))

Let's grab one. ☕☕

Jessica Grant56 said:So, "that guy" claims you let me get away with everything, so here I am—counting up all the warnings you've handed me... and yeah, they were all justified. I earned them. Sometimes my fingers move faster than my brain, and when that happens, you just have to deal with the consequences—it's just how things go around here. Also, regarding that thread he started just to try and prove everyone hates you (well, everyone except me—I've got your back!), I made sure to list out all the nonsense he wrote in those three or four posts. I really hope this gets flagged by a moderator, because it isn't right if you decide how to handle "him" based on those kinds of statements.

Alright, you're up too. Give me something. ☕☕ Just let the consequences slide!

Everything that needed to be said has been said, and now we’re right back where we started. It’s the same old cycle: someone lights the match, someone else fans the flames, I probably toss a few more logs on the fire... then someone comes along and douses the whole mess with a massive blast from a purple fire extinguisher. And then? We just start all over again.
And that’s why I prefer these forum hangouts... what would I even have without them? He's one of our own!

Doing business with USA member states in Business, Accounting & Taxes · Jul 7, 2013

Patrick Peterson49 said:Honestly, these records are tripping me up a bit, but I’ve still got some breathing room before it actually matters 😁
Under section 164, it says everything needs to be in one single ledger, but then section 163 mentions keeping separate records... so my take is we need one master ledger where everything is displayed, plus extra sub-records for each specific group 🙂That's how I'm reading it anyway—and like I said, I've got time, so I haven't been stressing too much about it just yet...
My only real headache is that my programmer is waiting on me to explain the whole thing so he can build it... it's kind of ridiculous—it's like if I were doing someone's accounting and then asked them how to actually book the entries, and then tried to charge them for it on top of that 😁

Richard Howard55, so you're saying there aren't separate import/export books anymore, even for third-party countries or just for trade between USA members?

They don't exist for the USA or for third countries. Period.

Doing business with USA member states in Business, Accounting & Taxes · Jul 7, 2013

@Patrick Peterson49,
you really "nailed" it.
The audit logs are gone now (only kept for capital expenditures), though I wouldn't be surprised if they try to bring them back later.
Regarding the records a taxpayer needs to maintain in their books, I expect there'll be more talk about it soon—likely right before the first Sales Tax Law filings due, once all the consultants have returned from their "field trips" (they were scattered all over the country trying to interpret the basics). Why am I waiting? Because what you wrote (which is exactly what I was thinking) is an incredibly demanding task, and frankly, I have no clue how we're supposed to pull it off.

Take a look at Section 163, Paragraph 3 and Paragraph 4.
In just a couple of sentences, they describe—or rather, emphasize without actually describing anything—the maintenance of special records.
Does this mean we’ll need separate logs for acquisitions from the USA, separate ones for services received, separate ones for imports...?
As if the IRS doesn't have enough to deal with already.
Besides, I can't even imagine an IRS setup where the Sales Tax paid to a vendor (like Customs) overlaps with the "assessed" tax (acting as both input credit and liability simultaneously); maybe that's why these special records are being mentioned. 🤷

PDF Economy - Lilla P. - Moderating the "Accounting Software" thread in Feedback & Suggestions · Jul 6, 2013

Terry Johnson3;45774840 said:I've survived much weirder stuff than this

In sports terms, the play was watered down...
or maybe just... a total whiff!
Peace out. Enjoy! 🙂

PDF Economy - Lilla P. - Moderating the "Accounting Software" thread in Feedback & Suggestions · Jul 6, 2013

Terry Johnson3;45771285 said:

If you aren't a user and you aren't up to date on the facts... I guess what exactly are you even contributing here?

Techtronic only seems to pop up in 99% of these discussions because you're the one driving it; otherwise, it wouldn't even be mentioned. That’s my take on whether we should split the threads: no, it's better if we stick together.

The forum is supposed to be a place where we look for solutions to our own needs, especially when we can't figure things out ourselves or aren't quite sure about a fix.

I mean, if having an actual, reasoned debate is considered "annoying" the group, then whatever quality of discussion we have doesn't really matter.

And this whole thing about eggs... saying something is "too much" when it isn't even about software... 🙂

PDF Economy - Lilla P. - Moderating the "Accounting Software" thread in Feedback & Suggestions · Jul 6, 2013

Carol Price4 said:Exactly my point.

Users are having a discussion, and then suddenly, Pos bursts in out of nowhere. And if he’s lucky enough to actually say something constructive—which he doesn't—it's usually just some mindless rant used to plug his own software. He just waits for some victim to take the bait so he can tear down whatever program is being discussed while shamelessly promoting his own.

I'm with Lilla on this one.

I've mentioned this several times in the accounting software threads: I honestly feel like Terry Johnson3 is just here on a "mission." My take? He pops up in these threads solely to aggressively promote Tech-Synesis in a very efficient, free way. He jumps into discussions about Synesis without any real reason, just to serve his own agenda.

Regardless of how much he claims to know Synesis, he’s proven himself to be clueless more than a few times. To me, his posts often feel like total fabrications designed for one thing... showing up often enough so that a "random" user searching for info before buying software happens to stumble upon Tech.

The only reason I highlighted my previous exchange was because it was actually useful, given the reasons I just laid out. But clearly, that exchange just ended up stifling the group, which is probably enough proof that there's no point in comparing programs here. We should just "clear the space" so people can ask what they need to know or solve their problems... and nothing else.
I hope the accounting software thread continues moving in this direction, and that users like Terry Johnson3 eventually just... fade away.

And finally, I want to express my full support for Lilla as a moderator. She has an incredible style—principled, yet human at the same time.

Doing business with USA member states in Business, Accounting & Taxes · Jul 4, 2013

slygardener86 said:Is it actually a mistake to issue the new style of invoices for all retail sales—meaning, with the tax calculated at the end? Because over at Synesis, they have the usual cash receipt plus the new MP invoice and the VP invoice, and apparently, we're supposed to use them like this:
1. For regular citizens: Cash Receipt
2. For the "tax credit seekers" under $233: MP invoice
3. For the "tax credit seekers" over $233: VP invoice.
It feels incredibly complicated to me—three different types of receipts, three different payment terminals, and the constant headache of potential issues (like a customer asking for a business invoice first, then changing their mind, etc.) which leads to a mountain of voided transactions that we just don't need.

So, is there any actual reason (some legal mandate or official directive) why we shouldn't just issue the new type of invoice to everyone (the VP version in Synesis, where the tax is totaled at the bottom)?
Because that would give us one single workflow for all retail, keeping everything simple—if you enter the customer info, great; if you don't, also fine. 🙂

Thx!

Maybe don't hand out the VP to everyone. You might accidentally trip over some consumer protection law meant for end-users. They probably need to see the final price inclusive of tax upfront.
I haven't dug deep into the specifics, but just to be safe, I'd stick to the Retail Invoice for everyone since it covers all the required payment methods according to standard auditing rules (I wouldn't even touch the cash receipt). The payment reports clearly show the breakdown anyway (cash vs. cards, etc.).
If a "taxpayer" shows up, sure, I'd use the VP, even if they're just buying something small for $12.

Doing business with USA member states in Business, Accounting & Taxes · Jul 4, 2013

Nicole Lee6 said:What should I actually list as the service location on a receipt when I'm out in the field issuing an invoice from a tablet via a mobile POS terminal? (And just a side note—I can't quite figure out how to format that specific part in my current setup). Honestly, I don't even see a dedicated field in the software settings to input a specific location. Does anyone have a practical workaround or a clever way to handle this?🤔 Is it actually possible to use the fiscal transaction number for that purpose? Specifically, I'm wondering if using the second digit of the business premises identifier would be sufficient. Is that enough to get the job done?

Well, you have "mobile point of sale." 🤣
That's what the official tax guidelines say, so... figure out some magic to make it work with whatever POS hardware you're stuck with. 🙂
It makes sense to define it as a business location via your own internal company policy.
If your software allows it, just slap something like that onto the invoice header.

What actually counts as a business location?
Regarding tax compliance, what qualifies as a business location is mostly left up to the taxpayer. Basically, any physically separate, enclosed space at a different address counts as a business location. Whatever you decide constitutes your business locations needs to be clearly documented in your company's internal policy.
For instance, you could technically run two separate business locations out of one single room—say, for bookkeeping services versus rental services. Or, a business can decide that every individual field service crew counts as its own "business location." If a company operates from a main office but organizes a consulting session at a hotel one day, that hotel is considered the business location for that day. Businesses that operate without a fixed address are classified as mobile (like a chimney sweep or similar).Invoice sequencing is determined by those internal company policies. A business location might follow one sequence, or you can set sequences based on the specific POS device used, or even by document type on the device.
You keep that internal policy on file at your office for when the IRS comes knocking. You don't send it to the IRS.

Doing business with USA member states in Business, Accounting & Taxes · Jul 3, 2013

David Parker44 said:So, from what I gather, I can just keep issuing retail receipts exactly like I have been, right? Since there aren't any changes to the retail format, I can still issue an R-1 higher than $233???🙄

Unbelievable. I honestly don't think even Linić fully understands this!

Exactly. A retail receipt can easily run into thousands of dollars, and honestly, nothing has actually changed compared to how things used to be. The only real difference is that the specific formats for those receipts aren't dictated by the Value Added Tax Act anymore; now they fall under the Internal Revenue Code. So, I guess just keep doing what you've always done and enjoy the ride.
Look, if you end up with a customer—a taxpaying business, specifically—and you need to issue them an invoice, that total can't exceed... $233 As it stands, it won't work. It needs to be restructured to comply with the Value Added Tax Act if they actually want to claim that input tax credit.
Look, the bottom line is this: you have to actually step into the shoes of a customer like that. It’s not just theory—you have to realize how much it matters to them whether they can claim that input tax credit or not. If you approach things with that kind of mindset, you're basically driving your customers straight into the arms of a competitor who’s actually willing to issue an invoice that lets them write off the tax. I guess if you don't, you'll just lose them. Maybe.

casualorca5 said:Check Section 175 of the Regulations; that should go under subsection II.3. They lumped everything together there, even the 22% and 23% shipments.

Thanks. I'm heading off to hit the books. 🙂

Doing business with USA member states in Business, Accounting & Taxes · Jul 3, 2013

David Parker44 said:Can someone please make sense of this for me?

"Under the updated Sales Tax Law, business owners can claim tax deductions using retail receipts, provided they don't exceed
$233, and as long as the customer's name and SSN are clearly listed on them.

For any amounts over $233, you have to void the retail sale and move it to wholesale, where you
can issue an invoice that complies with the Sales Tax Law."

Article 79 lists everything required for an invoice under the sales tax law.
If the law allows it, you can claim the credit.
In paragraph 12 of that same article, they added another type of receipt (which the IRS website says also works for credits) called a "simplified invoice." The difference here is that prices are shown inclusive of sales tax (like a price tag in a shop), rather than the "standard" way where you list the item price, then the tax, then the total at the bottom.
Now, here is the catch: that "simplified" invoice cannot exceed $233. I have no clue if that's 700.00 including tax or before tax, because the law just says... "for deliveries of goods or services..." (what exactly counts as a delivery in this context? Honestly, I don't feel like digging that up, I'd rather $233 and call it a day).
And that’s where this whole wholesale headache starts, since those follow the full requirements for a "proper" invoice.
I suspect retailers are being told things have become "complicated," and everyone will just have to figure out their own way to deal with it (probably by praying the software developers come up with something to get us out of this mess).
There. I tried to explain. Maybe it helps, maybe not....

Also, could someone explain which boxes on the sales tax form should be used for shipments to the USA (or even other countries), assuming I have proof they are tax-exempt and I still need to account for "domestic" sales tax?

Doing business with USA member states in Business, Accounting & Taxes · Jul 3, 2013

ruggedmaker2 said:I honestly don't get why they told me at Fannie Mae that I didn't have to. Look, I just put the sales tax in dollars, but now I’m going to end up having everything mixed between dollars and euros.

Just put everything in dollars.
The advisors were following the directive, and it basically says you can do what you did (just the sales tax in dollars). However, everyone seems to be obsessing over the first part of the sentence in Section 81 of the Tax Code, which states: "Amounts on invoices shall be expressed in dollars..."
So now the IRS agents are starting to interpret it their own way, and we don't have much choice but to just list everything and call it a day.

Zachary White17 said:Is it just me, or did the IRS—which apparently decided to take half the day off today—upload a completely different VAT form to their site since yesterday?

http://www.irs.gov/forms/VAT-form-example-1

http://www.irs.gov/forms/VAT-form-example-2

I guess it's hard to tell which one is actually the right one now.

The second one is the right one.

Zachary White17 said:The link over on Google seems broken:
http://www.irs.gov/forms/broken-link-example

It looks like the sales tax link is still pointing to the old version, maybe?

Yeah, they've mixed up the forms. They posted the old one but labeled it with the new regulation code.
I'm not even sure about what they're saying on MTV... but I'm not going to bother digging into it. I'll just wait for them to fix the website.

Doing business with USA member states in Business, Accounting & Taxes · Jul 1, 2013

restlessnomad10 said:Could someone please help me make sense of the difference between receiving services from within the USA at a 25% rate versus receiving the supply of goods and services from non-resident taxpayers at a 25% rate
? Thanks.

stormygardener44 said:Could someone help me wrap my head around this:
If a business delivers goods or services to another state within the USA and the total value exceeds that state's specific threshold, are they required to register for sales tax in that state?
Basically, if our partners in Oregon ship us goods worth more than $90000, do they need to register for sales tax here? And if so, which line on the tax return should we use to record that acquisition?

Thanks!

Maybe these two questions are actually part of the same issue. I'm just typing what comes to mind right now; tomorrow I’ll dig through the IRS regulations and try to figure out if I'm even on the right track.

Once they cross the delivery threshold, they register here, and then we record them as domestic turnover (they get a US Tax ID and charge sales tax at our rates).

Does that make them the ones referred to as being without a headquarters in the US at a 25% rate?

Doing business with USA member states in Business, Accounting & Taxes · Jun 27, 2013

ruggedmaker2 said:It’s possible it really does just apply to goods... I guess I'll have to dig through the fine print again. Hopefully, once the official regulations actually drop, they'll make it crystal clear. We just have to wait for them to get their act together.

Maybe someone who actually knows their way around 🙂
can weigh in.

The acquisition thresholds only apply to goods and kick in when you're selling items to individuals (non-business owners).

That’s how I interpreted the rule, anyway—not that I'm exactly an expert on this... 😵 ...so I'm really hoping someone else jumps in here.

Doing business with USA member states in Business, Accounting & Taxes · Jun 25, 2013

gentlepilot45 said:Honestly, I don't care if there's just one such invoice; even a single outlier means you have to sort it out before the first "new" tax filing hits.
One thing that really cracked me up this morning: the IRS apparently has enough free time to spruce up their website ten days before the entire country's tax system undergoes a massive overhaul, yet somehow they can't find the time to fix the new VAT form (Row III is supposed to be the sum of Rows 1 through 9, but they still haven't added a nine, and they somehow skipped seven 😂).
The other thing bouncing around my head: I realized that for imports from the European Union, I have to calculate taxes using the mid-market rate from the Federal Reserve on the supplier's invoice date—is the system the same for deliveries within the EU? If so, someone really needs to teach people that you can't just pre-date invoices for next week while you're sitting out on a boat...

Well, look at that. They finally fixed the form. No more 7, no more 9. Honestly, I’m just feeling sick now. I was almost looking forward to the chaos—I figured maybe those invoices sent before June 30th would somehow trigger those "phantom" line items. Now? There's zero hope left. 😢

Doing business with USA member states in Business, Accounting & Taxes · Jun 20, 2013

ruggedmaker2 said:My gut feeling is that invoices for things still technically classified as imports or exports will just follow the old rules. Since they carry a June date, they'll land in the June VAT form, just like they always have.
At least that's how it works for corporate income taxpayers. 🤷

Yeah, it’s not an issue for corporate taxpayers, unless you have some R-2 invoices getting paid in July.
When I was writing that previous post, I was thinking strictly about those cash-basis taxpayers—the ones who handle VAT based on when money actually changes hands. They’re the ones who really have something to worry about. 🤔

Doing business with USA member states in Business, Accounting & Taxes · Jun 19, 2013

gentlepilot45 said:Does anyone happen to know how we should handle things starting July 1st—specifically regarding credit memos or those refunds applied to invoices issued at the 22%, 23%, or 0% tax rates in the sales tax return?
Or am I looking at how to report supplier R2 payments made after July 1st for those specific types of invoices?

Everyone is hyper-focused on the new VAT rules, while sweeping these kinds of issues under the rug. But honestly, we’re going to hit a wall in the very first month. Small business owners and freelancers are going to struggle even more when they can't figure out how to log a payment or collection for an invoice dated before June 30th that actually clears after July 1st within the EU.

Just to make things even more complicated—and I say this loosely—we'll have payments or collections for imports/exports that were valid through June 30th but aren't anymore. They won't fit the EU forms, and they won't fit the domestic ones since those haven't been updated properly yet, or so it seems looking at the new VAT form. Where am I supposed to put them? The forms separate goods and services... and there's just a mountain of other issues. Besides, they don't even belong in the books after July 1st, unless maybe some random line on the VAT form under Section III to adjust the liability.
I have absolutely no clue, and I haven't heard a single soul ask this during any seminars, let alone have a lecturer actually warn us about it.
Bravo, handyman. That is a "killer" question, and the answer?... who knows when we'll get it! 😁

Doing business with USA member states in Business, Accounting & Taxes · Jun 19, 2013

@ruggedmaker2,
I haven't quite wrapped my head around that example of yours yet. 🙂
Tomorrow is another day, I guess.