Doing business with USA member states
in Business, Accounting & Taxes ·
Good day to everyone,
I am currently navigating a complex tripartite transaction and would appreciate some insight from anyone with experience in this area.
The setup is as follows: Company A is based in Denmark, Company B is our firm here in the US, and Company C is an American shipping company whose vessel (where the goods are being delivered) is currently docked at a port in Italy. The cargo moves directly from Company A to Company C, but physically ends up at that Italian port.
Company A issues an invoice to Company B (us), and subsequently, Company B issues an invoice to Company C.
Regarding the outbound invoice from Company B to Company C:
1. What specific language should I include in the notes section of the invoice? Since the vessel remains in international waters, we have previously noted that VAT is not charged in accordance with the provisions of Section 47, subsection 1 of the Value Added Tax Act. Is this still the correct approach?
2. In which specific line item of the VAT return should this be reported?
3. Does this invoice need to be included in the Collective return?
Regarding the inbound invoice from Company A to Company B:
1. Should the Unbilled Receivables Account (URA) appear on the VAT return? Since this does not constitute a standard acquisition of goods, I am uncertain which category it belongs under.
Does this scenario qualify as a tripartite transaction?
Thank you very much for your assistance.
I am currently navigating a complex tripartite transaction and would appreciate some insight from anyone with experience in this area.
The setup is as follows: Company A is based in Denmark, Company B is our firm here in the US, and Company C is an American shipping company whose vessel (where the goods are being delivered) is currently docked at a port in Italy. The cargo moves directly from Company A to Company C, but physically ends up at that Italian port.
Company A issues an invoice to Company B (us), and subsequently, Company B issues an invoice to Company C.
Regarding the outbound invoice from Company B to Company C:
1. What specific language should I include in the notes section of the invoice? Since the vessel remains in international waters, we have previously noted that VAT is not charged in accordance with the provisions of Section 47, subsection 1 of the Value Added Tax Act. Is this still the correct approach?
2. In which specific line item of the VAT return should this be reported?
3. Does this invoice need to be included in the Collective return?
Regarding the inbound invoice from Company A to Company B:
1. Should the Unbilled Receivables Account (URA) appear on the VAT return? Since this does not constitute a standard acquisition of goods, I am uncertain which category it belongs under.
Does this scenario qualify as a tripartite transaction?
Thank you very much for your assistance.