Posts by Sam Evans

10 posts shown.

Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes · Sep 25, 2016

Keith Martinez5 said:Thanks for the tip! I'll definitely try one of those routes... I did attempt to call them to explain that I'd be sending over a corrected invoice, but my Italian isn't quite fluent enough to navigate that conversation successfully, so I think that option is pretty much off the table.

Honestly, I am constantly running into walls when dealing with people from Italy... they have this incredibly laid-back, slow-moving way of doing things that can drive you crazy. But look, the actual process is pretty straightforward: if a business has a valid number registered in the Visa system, you just apply the reverse charge; if they don't, then they owe our local sales tax. If you messed up the paperwork, you just issue a credit memo to void the old one, send the new one, and you're done with it.

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Doing business with USA member states in Business, Accounting & Taxes · Nov 20, 2015

Hey everyone, I could really use some help here... I’ve run into a situation I haven't dealt with before. I bought a vehicle from a company that doesn't have a valid tax ID. Should I be recording this under received goods and services from non-resident taxpayers? And am I supposed to calculate the sales tax based on the price actually paid?
I already sent an inquiry out, but I haven't heard anything back yet, and today is the deadline for filing...

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Doing business with USA member states in Business, Accounting & Taxes · Nov 1, 2015

vividotter912 said:Right, an N1 is a commercial vehicle. So, in the VAT return, I record both the VAT liability and the input tax, correct? Everyone keeps saying "pay the VAT," which is confusing...
Does the VAT return have a specific deadline, or is it always by the 20th of the month?

Look, you have to be crystal clear on what that vehicle is actually being used for. If it’s not subject to a specific excise tax, then you don't get to claim an input credit—you just eat the cost. But if it falls under the HS code 8703 for passenger vehicles, you can claim the credit since there isn't a special tax involved...

There are certain rules in play here, so I'm sending you a link to the IRS website; go ahead and ask them directly, get an official inquiry in writing, and follow whatever they tell you to do. And yeah, the deadline is November 20th, but honestly, I don't lose sleep over dates. What really matters is making sure you don't accidentally deny a credit you're entitled to, because we can always settle up with the government before the end of the year.

http://www.irs.gov/publications/....aspx?id=19016

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Doing business with USA member states in Business, Accounting & Taxes · Nov 1, 2015

vividotter912 said:Actually, I misspoke: it wasn't a forwarder, but a transport service. We didn't go grab the car ourselves; a specialist brought it on a trailer.
The extra money they wanted was for insurance. Apparently, some Americans deal in cars, so there's no way to know who's paying what... taxes...
Anyway, they wouldn't release the car without that deposit. It's just that we refused to hand over cash; I requested a written quote so I'd have paperwork to back up the payment.
They claim once we send over the registration papers and the CMR, they'll refund the deposit. Look, I have no idea what the standard procedures are; this is my first time buying from the European Union, so I'm pretty inexperienced.
Is what I mentioned above regarding VAT correct, or did I mess that up too...?

Well, everything changes now that you've clarified the details. When they issue you a net invoice and you're operating as a business, you end up paying the VAT back home in the States... they basically plug your tax ID into their system so that you're the one responsible for reporting and paying the sales tax here in America. If they give you a net price in Germany, you calculate the 25% tax on top of what you paid, report it on your tax filings, and handle the specific vehicle excise taxes... you bundle all of that into the total acquisition cost of the car. If it's classified as an N1 light truck, you won't deal with those specific heavy vehicle taxes, just the standard homologation and registration costs.
They're being a little tricky by saying they'll refund it only after registration or once you email a scan of the verified CMR...🙂

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Doing business with USA member states in Business, Accounting & Taxes · Oct 28, 2015

vividotter912;55971153 said:

Does anyone actually know how this works? If a business registered for VAT buys a heavy truck over in Germany, they just issue the invoice at the net price, right?
Then we report the acquisition in our VAT return—meaning I book both the input tax and the VAT in the same month—along with the VAT-S filing?
Here’s the kicker: we already paid based on the official quote they sent us, but now they’re demanding the freight forwarder bring some cash for a "deposit," otherwise they won't release the truck. For what?! And they want it in CASH!!

I honestly don't get how they can even ask for cash when the deal was settled via the quote. I don't understand why the forwarder needs anything extra since we're part of the European Union and everything should be handled digitally through the business accounts... just pay the bill and either send someone to pick up the vehicle or drive it back on its own wheels...

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Doing business with USA member states in Business, Accounting & Taxes · Sep 15, 2015

ruggedmaker2 said:We’ve figured out all the nonsense suppliers write on invoices when they shift the tax burden onto us, but what on earth do they put in those clauses for the margin scheme?
Does anyone actually have an example handy? I just need you to copy-paste roughly how the clause is worded.
It’ll probably be in English, German, Italian, or French—I’m just rattling off European languages now, haha 😁—some kind of weird legal phrasing.

Thanks in advance.

Hey,
as far as Italians go, I know about articles 36 or 38/41/95

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IRS and Tax Filing Issues in Business, Accounting & Taxes · Aug 21, 2015

I I had a hell of a time with this too, especially when it started demanding some new version of Java be installed... I couldn't get the damn thing to work, so I just set the form permissions to visible for all authorized users until I figure out a real solution.... Honestly, these constant updates drive me absolutely insane.

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Doing business with USA member states in Business, Accounting & Taxes · Jun 16, 2015

I actually reached out to the IRS via a formal inquiry just to figure out how we’re supposed to track when a tax liability lands on our doorstep if "reverse charge" isn't explicitly flagged. Their response? Purely dismissive. They basically told us we have to hash it out with the vendor ourselves and find some way to reach a mutual agreement. It's like they're saying, "Figure it out with them now, because when the auditors inevitably show up, they'll find their own creative way to make sure you end up paying the fine anyway."🙂

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Doing business with USA member states in Business, Accounting & Taxes · Jun 4, 2015

Henry Edwards33 said:That’s just their way of saying they're transferring the tax liability.

It’s always a headache getting Italians to correctly label a reverse charge. Honestly, we might as well just study their legal code ourselves if we want to get anything done. 👏

I reached out to the supplier yesterday, and honestly, the guy had absolutely no clue what any of this meant. I ended up having to translate the whole mess myself, only to realize it was a reverse charge situation... the idiot actually tried to bill me for the tax without even mentioning it upfront. Thanks for the help!

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Doing business with USA member states in Business, Accounting & Taxes · Jun 3, 2015

Hey everyone,
I’m trying to wrap my head around this specific tax clause I keep seeing: "Non imp.Art 41DL 331/93 Chase. EU"
Basically, I'm looking at buying a used car with the intention of flipping it for a profit later on. Does anyone actually know what this legal jargon is getting at?
Thanks!

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