Posts by Drew Rogers6

Can I actually ask for help here regarding the new RRI chart of accounts—the one they updated to align with the European Union standards? If anyone has a copy, please PM me 🙂

Jeremy Anderson63 said:We're talking about a transport service within the European Union performed by an American taxpayer for a business located in another member state. The standard rule applies here: the place of supply is where the recipient's headquarters are located. An American taxpayer shouldn't charge VAT on the invoice and should include a note stating the tax liability is being transferred under Section 17, Subsection 1 of the VAT law.
You also need to log this in the ZP form under "Services performed within the EU"

When you're exporting goods to Mexico, that's considered an export exempt from VAT under Section 45, Subsection 1, item 1. On the invoice, you just write "Exempt from VAT per Section 45, Subsection 1."]

🙂

I’m begging anyone with a soul—and please, just don't give me that "go read the tax code" nonsense—to tell me if I need to charge VAT when I'm hauling goods from Washington, D.C. to Buffalo for a company based in the European Union that's already registered for VAT. If I don't have to, which specific section of the law covers that?

Also, does anyone know which part of the law applies when I'm exporting goods to Mexico to a registered taxpayer?

Thanks in advance!🙂

copperstag95 said:I suppose I find myself wondering why the acquisition of goods and services from within the USA doesn't just get tossed into the standard URA ledger, but instead requires its own separate record-keeping entirely?

Look, the standard VAT ledger only handles input tax—but when you're dealing with acquisitions, you have to book it as both input tax AND an obligation.🙂

I keep having this one recurring nightmare:
I’m being totally unprepared when I get word that an audit is happening the next morning. I spend the entire night frantically logging entries in the IRS books, only to wake up the next day and realize I spent the whole time recording everything from the wrong shift. Then, there's a knock at the door, they start pulling out my ID cards and... that's when I wake up. Honestly, I think I'm done. I might just quit and try my luck in show business.
🙂

Dammit... excuse me, peppers. In the IRS module for EU asset acquisitions, it’s demanding I fill out the input VAT and tax liability accounts in the parameters. I’ve got my old RRIF account numbers, so I just sort of winged it by assigning 1404 and 2403. Does anyone actually have the updated account codes?
Does anyone else split these up?

Benjamin Palmer80 said:Here is an excerpt from the IRS website:
Generally, when acquiring goods within the European Union, the price stated on the invoice is accepted unless there is evidence that the amount is incorrect. The tax base for acquiring goods within the European Union is determined in the same manner as for domestic deliveries of the same goods. The IRS will use available business documentation to conduct audits regarding the acquisition of goods from other member states of the European Union.

Regarding the exchange rate you should use, at a seminar hosted by the IRS, they told us to stick to Section 36 for all calculations involving foreign currencies. That rule states we use the Federal Reserve mid-market rate on the day the Sales Tax liability arises. They explained this is usually the date of delivery—which in most cases means the date on the shipping manifest, or the day the supplier actually hands over the goods, even if the shipment takes a few days to reach you.

thanks 🙂

Drew Rogers6 said:So, we just picked up some inventory from the USA.
What exactly goes into the taxable base for calculating the sales tax on the acquisition?
Is it just the value of the goods converted to USD using the Federal Reserve mid-market rate on the invoice date?
And what about shipping costs? Do those get tacked onto the base too?

Anyone got an answer?

So, we just picked up some inventory from the USA.
What exactly goes into the taxable base for calculating the sales tax on the acquisition?
Is it just the value of the goods converted to USD using the Federal Reserve mid-market rate on the invoice date?
And what about shipping costs? Do those get tacked onto the base too?

For those who care, but probably don't...
A clerk at the local police department—no, wait, let's just say some bureaucrat at the local precinct--is claiming the VAT deadline is the 30th or 31st of the month, regardless of the fact that the actual filing deadline is the 20th.
Also, if you were previously on a quarterly schedule and they finally assign you a specific tax ID, you're officially bumped up to a monthly filer. 🙂

Unknown:

I don't even know where to start with this one—honestly, it’s just exhausting! Every single time I think we’ve moved past this level of nonsense, something else pops up to prove me wrong. It’s like people are actively working against common sense at this point. Seriously, give me a break! kaže: 😂 I honestly don't even know whether to laugh or cry at this point... I mean, seriously? I called them up myself, my colleague was already following up via email, and we even agreed that I’d send over a formal follow-up—only to get a reply today basically telling me they’re starting the whole damn billing cycle from scratch at number one. Are you kidding me?! 😂 They told her that the numbers just keep going... 😂🤣

Karen Rodriguez3 said:Man, they really didn't have their act together for this one.😢
I mean, why on earth would it start from number one? These are the books for this current year, for crying out loud. It’s not like they haven't swapped things around in the middle of the year before, and it never starts at one mid-year, so I guess it shouldn't now either.🤷

I went ahead and asked them myself. And guess what? They told me the exact same thing—you start counting from number one. 🙂

ruggedmaker2 said:I’m still waiting on my new IRA and 401(k) statements to hit, but I’m guessing the sequence numbers will just keep rolling along.
It actually makes sense to me, honestly—it’s not like the fiscal year changes or anything.

Exactly!

I’m gonna keep the count going because—let's be real—those guys at the Fed might come up with yet another version before the year is out, so we'll need to pull the cumulative 😁

and if I end up with two "number 1"s, I'm totally screwed.

ruggedmaker2 said:Check this out for some clarity:
http://www.irs.gov/tax-guide/...second%20part.pdf Look at question number 9 and keep going from there.

Thanks, I found it!🙂

If I’m billing an American company for a transport service on the Budapest - New York City route—which used to be classified as importing goods—how does the invoicing work? Do I still bill it the old way, where the portion in Canada is tax-free and the part in the US includes sales tax?

And what happens if the route is New York City - Budapest? Before, that was considered an export, so it fell under the zero-rated tax rule.
Which specific section of the tax law covers this?

Thanks in advance! 🙂

Should I keep the sequence going in the IRS ledger after that last entry from June 30th, or am I supposed to start back at 1?
With my regular invoices, I just kept the numbering continuous—they definitely don't restart at one. But now that I've installed this new sales tax software and started posting those entries into the IRS ledger by pulling in the recent records from Salesforce, all my IRS numbers are resetting to 1.🤷

Karen Smith34 said:Anyway, I'll ask one more time: has anyone actually heard back from the IRS with their number?

The clerk is claiming they’re assigned automatically—like, you don't even send in a request. She told me to just check the database to see if we're in there, but apparently, the US system isn't searchable yet...
so yeah, ☕ by July 1st
we'll see.

gentlepilot45 said:Honestly, I don't care if there's just one such invoice; even a single outlier means you have to sort it out before the first "new" tax filing hits.
One thing that really cracked me up this morning: the IRS apparently has enough free time to spruce up their website ten days before the entire country's tax system undergoes a massive overhaul, yet somehow they can't find the time to fix the new VAT form (Row III is supposed to be the sum of Rows 1 through 9, but they still haven't added a nine, and they somehow skipped seven 😂).
The other thing bouncing around my head: I realized that for imports from the European Union, I have to calculate taxes using the mid-market rate from the Federal Reserve on the supplier's invoice date—is the system the same for deliveries within the EU? If so, someone really needs to teach people that you can't just pre-date invoices for next week while you're sitting out on a boat...

Look, we use Chase for our business account. Most of the time we don't even keep Euros in the foreign currency account, so when we need to pay something, we just convert from USD—and that conversion amount becomes my base for the VAT form calculation. Am I doing this wrong?

Zachary White17 said:Are you certain about that part, where it goes as both an obligation and an input credit on the VAT return simultaneously??? I suspect it might only go as an obligation. If you acquire goods from the European Union, calculate the VAT on them, and then report it as both an obligation and an input credit, the net result on the VAT return would be zero. That wouldn't leave anything to pay, which doesn't seem right. You generally have to pay that tax upon acquisition. If you only list it as an obligation, then you simply have that tax due for the period, which seems more logical. So, I imagine it only counts as an obligation.

I am absolutely certain about this one. It’s one of the rare things in life I actually feel certain about.😉

If anyone knows...

What's the full rundown when we buy goods from the European Union? Up until now, my freight forwarder handled all that import stuff, but now it looks like I'm flying solo—so I guess I have to calculate the value of the goods myself and then tack on the sales tax. I assume I just list it on the tax return as both an obligation and an input credit, so there’s no actual cash out the door for it. I'm wondering what else is on the checklist—like, do I include the shipping costs up to the border in the base value? It feels redundant since there isn't even a customs duty anymore🙄. Also, which specific forms am I supposed to fill out and file...?

I did find out that we don't have to file Intrastat reports because our turnover stayed under $566667, and apparently they notify you themselves once you actually hit the threshold. Honestly, the lady at the Intrastat helpdesk for the IRS was actually super helpful and sweet for once. 🙂

☕