Doing business with USA member states
in Business, Accounting & Taxes ·
So, here’s my situation. My company (an American taxpayer) needs to re-bill a freight service. We hired a carrier (also an American taxpayer) to move some goods over to Austria. We’ve already sent the main invoice to our Austrian client for the delivery of those goods, citing the relevant exemption under Section 41, Paragraph 1, Item A of the Sales Tax Law. My big question is this: when I issue the invoice for the shipping costs, should I cite the reverse charge exemption under Section 17, Paragraph 1, Item 1 of the Sales Tax Law and include it in the aggregate report? Or, since my company isn't actually in the transport business and we're basically just passing through a cost—which isn't even really a "service" in practice—should I just issue a standard invoice with American sales tax applied?