Doing business with USA member states
in Business, Accounting & Taxes ·
I’m hoping someone can point me in the right direction here... I run a small family farm registered for sales tax, specializing in mushroom production. We actually import the specific substrate needed for growth from a supplier over in the US. For instance, they might send us an invoice for around $750, which I record in a separate ledger for intra-community acquisitions and then file my sales tax returns accordingly. What I’m really struggling with is this:
How does this process transition once everything gets rolled into the final KPI reporting? I’ve been trying to put together the year-end statements, but I feel like I’ve hit a bit of a wall. Essentially, my expenses look disproportionately high because I can't claim a credit for that imported sales tax, so when the figures move into the KPI, only the base amount from the tax filings is being reflected. This is leaving my net income looking like it's deep in the red. Since we have to import this substrate every single month—with each invoice hovering around the $750 to $780 mark—the discrepancy is constant.
Any guidance would be greatly appreciated! If this sounds like a rookie mistake, please forgive me... :-/
How does this process transition once everything gets rolled into the final KPI reporting? I’ve been trying to put together the year-end statements, but I feel like I’ve hit a bit of a wall. Essentially, my expenses look disproportionately high because I can't claim a credit for that imported sales tax, so when the figures move into the KPI, only the base amount from the tax filings is being reflected. This is leaving my net income looking like it's deep in the red. Since we have to import this substrate every single month—with each invoice hovering around the $750 to $780 mark—the discrepancy is constant.
Any guidance would be greatly appreciated! If this sounds like a rookie mistake, please forgive me... :-/