Posts by Raymond Martinez10

Cut the whining—it could always be worse. Always.

Let’s just say Jessica Grant56 has a reason to celebrate—starting this year, she can actually hold down a job without having her Social Security benefits frozen. 🧐

Now we’re down to just one single pattern—one Nobel Prize winner, not even two, let alone five or six.

They’re demanding we stay updated daily—as if we have nothing better to do—so we aren't losing any sleep over campaign work.

Nothing but positives here.

🙂🙂🙂🙂
Greetings to everyone—don't go thinking I just vanished or went rogue. Truth is, I’ve been swamped and haven't had a spare second to check in here or anywhere else.
Wishing you all the best for these holidays since I've been away from this forum.

jadenomad24 said:I was actually just thinking about that myself—the director’s name is listed as the certificate holder, so I'm torn on whether I should put my own name down instead.
Anyway, what I really need to know is which line on the sales tax return I should be using for incoming invoices. For example, if I get an invoice for shipping services within the US—previously, under the old tax forms, that went under Section III, Line 3 (input tax on received invoices at a 25% rate). Now, I'm lost. Does it go under Section III, Line 1 (calculated input tax from domestic supplies) or Line 2 (input tax on domestic supplies where the recipient handles the tax)? What's the actual difference here?🙈

It goes in III 1. Line III 2 is for those construction contractors.

I suspect we’re going to see some new statistical exchange rate introduced soon—strictly to satisfy VAT requirements. Honestly, I don't see any other way they'll manage to sync up all the different states to verify if a taxpayer actually reported their goods deliveries or acquisitions correctly.

If a taxpayer fails to issue an invoice for an advance payment under Section 30.5 of the Tax Code, they can't legally claim it under Section 85.1—and that’s when the IRS comes knocking with Section 131.1.1. ready to slap them with a $200k to $500k penalty.
If they still refuse to play by the rules, well, that's their funeral. I've got one client right now acting exactly like this—don't think you're the only one dealing with this headache. 🙂

I’m dealing with a headache involving a client who constantly shops at one specific big-box retailer—won't name names here, but you get the idea—buying directly from their retail stores.
The invoices go through $233, yet they're listed at full retail prices (meaning the unit price includes the sales tax).
How on earth would you guys handle these kinds of receipts???

Henry Edwards33 said:😲

I’m all sweetness and light, really 🙂

But I'm losing my mind here because some people just can't plan two steps ahead. They're already falling behind before they've even started. 🙂

😢

One of your clients?

Henry Edwards33 said:Vladimir Sabrati 😘

Get a grip, 🙂

Just ignore the posts that are getting under your skin and go grab yourself a stiff drink 😉

Were you implying I should pick you? 😉

I'm handing out the cards here—this thread was meant for ☕ and 🙂 🙂: 🙂, but now you've all veered off into some non-programmatic territory 🙂

Sure, the answer got buried under all those construction services, but it clears up everything 🙂🙂🙂

Jessica Grant56 said:Look, you little firecracker—it doesn't really work like that. My life experience might be one of my strengths, but let's be honest—I can barely manage to get through one thing without struggling, (or at least that's what I tell myself), so trying to juggle three is just asking for triple the trouble.

And that traitor only shows up when he's called out—either he's working like a maniac or he just doesn't care for this place anymore... Honestly, I couldn't wrap my head around someone with such small-time energy.

Even on a Sunday morning. 🤣

You can manage without that too

casualwolf22 said:Hey, I could really use some advice here... if anyone knows the deal.
So, here’s my situation: I’ve got a steady full-time gig right now where they pay me on time and handle all my taxes and benefits, which is great. But, I’ve got this itch to pick up some freelance work on the side whenever I have the downtime.
Since the work involves photography, I can't just open a simple sole proprietorship because those are strictly regulated—you basically need specific trade certifications or licenses that I don't have. So, I’ve been looking into starting an LLC.

From what I’ve gathered, you can technically set up an LLC without having employees, but there's this catch where the business isn't supposed to show a profit unless there's actually someone on the payroll.
I also thought about asking my current boss to scale back my hours from a full 8-hour shift to maybe 4 or 6 hours, so I could use the leftover time to run my own thing, but honestly, I'm not really vibing with that option.

Then, this idea popped into my head: What if I set up an LLC in my own name but don't officially hire myself as an employee? Instead, every time a job comes up, I’d just sign an independent contractor agreement with my own company. Basically, I’d be signing as the owner of the LLC on one side, and as the service provider on the other. Is that even possible? And more importantly, is it actually legal?

I know it sounds kind of "stupid" since the tax hit on contractor agreements is pretty brutal, but I'm low-key terrified that I won't find any other way to do this legally.

The only other alternative I can think of is finding some country in the European Union that doesn't have these weird rules about companies needing employees to turn a profit, then opening a business over there while still working here in America. 😕

That part in bold is completely wrong, but try an S-Corp instead—it's cheaper.

Arthur Bishop6 said:Look, I just re-read this and I think we’re talking about two different things entirely. I’m talking about moving physical goods for export. But, if you've got a client over in Mexico and you're exporting services, then yeah, the tax liability shifts—and that buyer better be able to prove they're actually registered for sales tax.

The tax liability doesn't shift for customers located in third countries. It's simple—old lady over there was quoting incorrectly; when dealing with customers in third countries, nothing changes. Everything stays exactly as it was before. The only difference is the specific section mentioned in the footnotes regarding US tax code.

By plane?

VAT in tourism—I don't have any agencies in my portfolio, but I’m curious how the tax calculations are actually shaking out these days.
Up until now, sales tax was always calculated based on where the service provider was located—so when a domestic agency sent out an invoice:
$100.00 plus 10% sales tax to the local agency—simple enough.
$100.00 plus 10% sales tax for the local guest.
Paid an outside agency $100.00 plus 10% sales tax.
$100.00 plus 10% sales tax for an out-of-state guest.

Is this it?
The local agency gets $100.00—plus 10% sales tax.
The local guest gets $100.00 plus 10% sales tax. Simple as that.
To a foreign agency (B2B). $100,000 before tax.
Foreign guest (B2C): $100.00 + 10% sales tax.

Brandon Anderson10 said:True, but Section 57, Subsection 2 clearly lays out exactly when a business can claim those credits and which federal regulations they have to follow.

Honestly, I’m a little lost on what you're even asking here!!

The question isn't whether you can reject that excise tax mentioned in Sections 58 through 62—which Section 57.2 points directly toward—it’s about the timing. When exactly does the right to reject it kick in? Is it at the moment the invoice is received, or is it when the bill actually gets paid, like how we've been handling things up until now?
There’s some weight to my assumption here—and honestly, a fair bit of uncertainty too—but it all stems from that one specific sentence in Article 57.1:
The right to claim a VAT credit—input tax deduction—kicks in when certain conditions are met. It’s pretty straightforward, really—though the IRS doesn't play around with these distinctions. You earn the right to deduct that tax once you have a valid invoice in hand and the transaction is officially recorded in your books. It isn't just about spending the money; it's about the documentation. If you don't have the paperwork to prove the business expense, don't even bother trying to claim it. I learned that the hard way back when I was running a small logistics firm in Chicago—one missing receipt from a supplier and suddenly your whole quarterly filing is a mess. Bottom line: keep your records tight and ensure every transaction is legitimate. When does the tax liability actually kick in? — specifically regarding sales tax. It’s one of those things that seems simple until you’re staring at a mountain of paperwork trying to figure out exactly when the obligation triggers. Which one can be rejected?

I honestly have no idea how to interpret this—which is exactly why I joined this forum in the first place.

ruggedmaker2 said:Look, it doesn't say the right to a credit kicks in when there's an duty to pay the sales tax. It says it happens when the calculation obligation hits, which is the day the invoice is issued. Period.

I wish it worked that way too—really, I do—but I'm not sure if Congress intended for us, as a corporation, to forfeit a tax credit we’re supposed to calculate immediately, while the recipient doesn't even face a payment obligation until they actually settle the bill.
The heading above that specific section reads:
Establishment of Input Tax Credit Rights

ruggedmaker2 said:Any R2 invoices that hit the desk before July 1st still follow the old rules—basically, you don't get to claim that input tax until both the invoice is issued and the bill actually gets paid.
But if you're looking at any R2s issued after July 1st, corporate taxpayers can finally jump the gun and claim that input tax immediately.

I'm just grabbing the last post from this thread. I'm stuck on one specific section of law 57.1.:
The right to deduct VAT (input tax) arises at the moment the obligation to account for deductible VAT occurs.
Does that imply input tax can only be deducted when the vendor actually incurs their own VAT liability? In other words—only when they've been paid? 🤷 😕

The real headache comes when they amend the law or federal regulations—they don't bother stating that a certain requirement is being waived. Instead, they just scrub the specific article or section entirely. It’s incredibly vague.
Take this situation with claiming pre-tax deductions under the standard tax codes: there isn't even a line explicitly saying you can claim them anymore. They simply deleted the provision that prevented you from claiming a deduction before the invoice was settled. Gone. Just wiped from the books.