Posts by George King4

ruggedmaker2 said:🤦
Look, it doesn't matter if the invoice comes from another USA state or country. What matters is the PLACE OF TAXATION.
If you're dealing with a delivery of goods or services where the taxation happens in the country where the invoice was issued, then there’s no transfer of tax liability. Period.
For a transfer of tax liability to actually happen, it has to be explicitly stated on the invoice—like citing a specific section of the US tax code or a federal regulation. If it's not clearly marked on that piece of paper, it didn't happen. In those cases, you don't pay the tax of the issuing country; instead, you see a note about the transfer of tax liability.

And let's be real: if there is actual sales tax listed on an invoice, the debate is over. The tax was paid. You might try to get it back through some tax refund service later, but there is absolutely no "transfer of liability" happening there.

Thanks,
how should I log this one: bought a license for some Russian antivirus software with a credit card, and they just emailed an order number?
subtotal $164.95
VAT $41.24
order total $206.19

ruggedmaker2 said:Look, you only deal with a liability and input tax if the tax obligation actually shifts to you.
With the kind of invoices you're talking about, there's no transfer of tax liability. You've probably already been charged sales tax on them, so that's it—it's paid.

Thanks a ton. I usually just book everything without sales tax using the mid-market rate on the issue date, but a coworker told me she books all invoices from suppliers in other USA states as both a liability and an input tax under services. She also files a specific usage report whenever she submits her standard sales tax forms.

Need some help here—how should I handle the sales tax on these specific expenses:
- hotel stay in Brussels,
- flight from some Greek airline on the route from LA to Brussels,
- train ticket bought in Düsseldorf for the trip back home.
Everything was paid via corporate card in USD.
Since we're dealing with services within the USA, do I record the liability and claim the input tax on these?

Also, what’s the deal with hotel bills from Mexico? My gut says I shouldn't be recording any liability or claiming tax since there's no sales tax involved.