Doing business with USA member states
in Business, Accounting & Taxes ·
I think I’ve combed through everything, but I can’t seem to find this specific scenario mentioned anywhere. We’re talking about translation services being billed between two VAT-registered businesses within the USA—you know, where the provider and the client are both registered taxpayers but happen to be located in different states. Based on standard international business practice, it's pretty obvious that no sales tax should be applied here. However, for the sake of keeping the IRS happy, we need to point to a specific section of the Tax Code to justify why we aren't charging it. After a bit of digging, I stumbled upon this particular clause:
The Tax Code, version 73/13, Section 45, Paragraph (1), Item 4:
4. services rendered, including transportation and related ancillary services, excluding services exempt from sales tax under Section 39, Paragraph 1 and Section 40, Paragraph 1 of this Code, provided they are directly linked to the export or import of goods as defined by Section 28, Paragraphs 2 and 3, and Section 52, Paragraph 1 of this Code.
Is this the one I'm looking for?
The Tax Code, version 73/13, Section 45, Paragraph (1), Item 4:
4. services rendered, including transportation and related ancillary services, excluding services exempt from sales tax under Section 39, Paragraph 1 and Section 40, Paragraph 1 of this Code, provided they are directly linked to the export or import of goods as defined by Section 28, Paragraphs 2 and 3, and Section 52, Paragraph 1 of this Code.
Is this the one I'm looking for?