Doing business with USA member states
in Business, Accounting & Taxes ·
I am honestly feeling so confused about which exchange rate to use when I'm acquiring assets from the European Union.
I have recorded all the goods that arrived as asset acquisitions using the rate specified by INTRASTAT—which basically means taking the average rate from the first valid exchange rate list for that specific month (you know, the one found on the Federal Reserve website for converting currencies to dollars)
.
Since there can be a gap of up to 20 days between receiving the supplier's invoice and the actual physical arrival of the goods (because our local trucking companies don't exactly race down the highway 🙂), which exchange rate should I actually be using when filling out my sales tax returns?
I just went ahead and used the exact same rate I used for my initial calculations—am I totally messing this up?
If I am, will I need to go back and fix all my previous calculations too?
And honestly, the folks over at the IRS haven't been any help at all with this!🙂
I have recorded all the goods that arrived as asset acquisitions using the rate specified by INTRASTAT—which basically means taking the average rate from the first valid exchange rate list for that specific month (you know, the one found on the Federal Reserve website for converting currencies to dollars)
.
Since there can be a gap of up to 20 days between receiving the supplier's invoice and the actual physical arrival of the goods (because our local trucking companies don't exactly race down the highway 🙂), which exchange rate should I actually be using when filling out my sales tax returns?
I just went ahead and used the exact same rate I used for my initial calculations—am I totally messing this up?
If I am, will I need to go back and fix all my previous calculations too?
And honestly, the folks over at the IRS haven't been any help at all with this!🙂