Posts by slyridge24

Jeremy Anderson63 said:Section 9 of the Law...

»Acquiring assets within the European Union basically means you're gaining the right to control movable property as an owner. Whether that’s the seller handing it over, the buyer taking possession, or some third party acting on their behalf... it's all about who holds the rights to the goods... Either send it over or just transfer it to the heir... Those assets sitting in a member state that... It’s not even a member state... So, when exactly did they actually start shipping those goods out...?.

The law is crystal clear on this... goods actually have to be physically shipped to another member state before you can even start talking about an acquisition of assets... It’s right there in black and white...

This shipment isn't subject to American sales tax, but you still need to get that invoice logged in the books...

If we're talking about installation services, things change completely. It’s a whole different ballgame because when you're trying to figure out where the service actually takes place, the tax location is what matters... not just where the work is physically happening...

Installation services can sometimes fall under those specific exemptions—you know, the ones tied directly to real estate where you won't get hit with any American sales tax. But honestly, it all comes down to a fundamental principle... It really just depends on what exactly you're dealing with.

Unless we're talking about real estate services, you just fall back on the standard rule. Basically, if you're paying for a service, it’s a taxable acquisition. That means any services coming in from the European Union... you've got to handle the use tax and the input tax, then file it all with the IRS...

Good grief, Jeremy Anderson63, I'm still completely lost. 🙂
My situation is exactly as I described; it is quite straightforward. We have a construction site located in a European Union member state. The investor is a foreign entity, and we are acting strictly as the contractors. Everything—from the raw materials to the subcontractors—is sourced locally within that country. All supplies are purchased and installed on-site right there. Our role from the US is simply to settle the foreign invoices. Should these be included in our VAT filings? What would you do in my position: yes or no?

I’ve been getting conflicting advice on this, so now I’m feeling pretty lost
Does the concept of "use" apply if you purchase goods or services within a European Union member state and then install them into a property located in that same country?
To be clear: those goods or services aren't being imported into the US; they are bought and installed locally. Should these types of invoices be reported as a "use" transaction on the sales tax return? I've consulted several tax professionals, and honestly, nobody seems to have a straight answer.