Posts by ironlynx

Carol Price4 said:For the USA, you use the sales tax return—you mentioned you already do that—just double-check if it's listed as a service, since you said earlier you were booking it through acquisition...

For third-party countries, you don't send a sales tax return; you just list it under services provided without a US seat on the standard tax form, covering both the liability and the credit. Check your previous tax forms to see how you handled it... if it doesn't look right, you'll have to check with your contact at the IRS to figure out how to settle it...

The PayPal VAT ID is: ATU15355906—go ahead and check, you'll find them in the IRS system.

Those are just those bank transactions that are exempt under Section 40 of the Internal Revenue Code.

Basically, you book that through a standard invoice and it's non-taxable. For example, 4653/2201.

Thank you all so much. I've been recording PayPal under received services in my accounts payable and marking it as "not subject" because that field was empty, which let me start from January 1st. It felt a bit cleaner than trying to use the regular accounts payable and recording everything from January 1st after July 31st, you know? I guess I'm wondering if I should just keep doing it this way, or once I catch up on the backlogs, should I move everything to the regular accounts payable? I think I heard somewhere that everything coming from the USA or other foreign countries needs to be reported separately...🤔
And I'm also curious about that whole reporting headache; if I only have outgoing invoices for lodging, I guess I don't really have anything to do with that specific filing, right?

Carol Price4 said:1) Booking—that's definitely services received from the European Union.

2) Third countries—for services from places without a US headquarters, you'll record the liability and the input tax.

3) Visa—I'm not super familiar with their specific setup... who exactly is the issuer, and do they have a US Tax ID?

So, I guess in principle I’m just recording things the same way, except that the ones from the European Union go under received services, while those from non-member countries fall under deliveries without a local seat here in the US. Maybe someone could explain a bit more why that goes under deliveries without a local seat? And honestly, what should I even do now, since everything has been recorded incorrectly since the start of the year? These received services were taxed with the VAT form, but those deliveries without a local seat weren't because they were recorded as imports and marked as non-taxable. Should I really go back and fix all of that??

Visa became part of the SIX payment services group based in Luxembourg, but on my invoices, it says Visa New York at the bottom, so I just stick to whatever the invoice says regarding their headquarters, I suppose. It lists VAT reg.no. 15355906, but when I check it against the database, it shows up as invalid, even though the invoices state that the aforementioned services aren't taxable because the place of performance is the US. 🙏🤔🤦

So, I was hoping I could get some help from you all just to clear my head a bit and make sure I'm getting everything organized correctly.
Specifically, I’m looking at these invoices for hotel reservation commissions—you know, those fees from foreign agencies like Booking.com. Since I haven't really handled this before, I'm relying on how my predecessor did things. She used to book anything from companies based here in the USA under the acquisition of goods from the USA category. But I guess I'm wondering if it might actually belong under the category for services received from the USA? The invoices clearly state they are VAT subject to reverse charge, and she would calculate the sales tax on that amount, booking it as both an input tax and a liability (using accounts like 14022/24002 and 4187/2211). That part seems fine, I suppose, but I'm just stuck on whether it should go under acquisitions or services.

My second question is about commissions from companies that aren't even based in the USA, like over in Switzerland. For those, she used to book them under the category for VAT calculations upon import, which seems okay, but I can't quite wrap my head around why only the base amount was recorded and then put under non-taxable using accounts 4187/2211.
Some of the invoices say "This invoice may be subject to reverse charge in the country of receipt," while others just show 0% sales tax.

Then there's the third thing, which involves the Visa statements for credit card processing fees. Those were also being booked under the acquisition of goods from the USA. These statements come in daily, and they mention that these specific services aren't taxable because the service is performed right here in the States. However, she would take the total from the statement and then add an extra 25% for sales tax, which went into the sales tax account, yet she only ever booked it using 4653/2211.