Posts by Ethan Bailey18

Rachel Palmer56 said:If you’ve actually had an ex, I might just hang myself at the first opportunity.🤣

Maybe you should go looking for Orah instead.🤣

Nobody is joining us 😢
I'm going to sleep.

Austin, how much are you paying her to shill for you? 🍿

(times)

😬

Lisa Ward52 said:We’ve all got different personalities here; not everyone is going to be a fan of one another.🕺
You’re good in my book.😬

Don't lie.😢
You're just trying to Lie to Zubek.🕺

Lisa Ward52 said:I just want to say I love you all🙂

except for the ones I don't 🕺

And how are we supposed to know if we're on the "not loved" list?🕺

Hannah Johnson44 said:I’d stick with you, if I absolutely had to.🕺

And me? 😢

Lizzy, Jojo, where did you guys disappear to? Is the site down?
Henry Evans10, you can check ☕

ruggedmaker2 said:That extra attachment on the sales tax return? It’s basically just pure statistics at this point. Honestly, I don't even think the IRS knows what they want us to do with it.
I always fill it out, but neither my auditors nor the tax man have ever breathed a word about it because, let's be real, it doesn't change a thing for the actual tax liability.

And look, those shipping logs from April—even if you're billing them now—don't sweat it.
It all falls within the same fiscal year, so they aren't going to come sniffing around looking for tiny discrepancies like that. Especially since both you and the client will be reporting everything in the same period anyway.

Grandma wrote to me in my records saying I hadn't reported services on side B during the year. 🤦
Why can't they just see everything on side A?
Or maybe they just don't know how to read.

I tell myself: don't worry about it. Just keep doing exactly what everyone else has been doing up until now.
Thanks, ruggedmaker2😉

Hey everyone,
Are you guys including details about intra-state services and reverse charge acquisitions on Section B of your sales tax returns?
At my old firm, we had an audit right before filing the year-end paperwork, and I was forced to disclose everything for the entire year.
Now I’m at a much larger company—double the size, actually. They just finished an audit and a state tax inspection last month, and they’ve never once reported those details. Not a single person flagged it. When I brought it up, they looked at me like I was from another planet.

On another note, I just received signed delivery receipts from April, and I'm only just now invoicing the goods.
Is anyone going to come after me for that?

casualorca5 said:Exporting to Japan,
does anyone know?
I guess Japanese companies don't have tax IDs????

It’s the same deal as any other foreign country.
You need a VAT number to transfer tax liability, but in this case, there isn't one. If you don't have a number on the invoice, you just cite the standard export regulation like you would for any other shipment.

George King4 said: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.

In principle, those invoices function just like our domestic cash transactions; the sales tax is already calculated (the rate depends on the originating state), but it has to be clearly stated on the invoice itself.
Check if the sales tax is explicitly listed. If it is, the entire amount is recognized as a cost, and you don't need to report it on the import tax form.

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.

That’s my take as well.
Business travel expenses. If there isn't a "reverse charge" note citing the specific exemption code, sales tax isn't your concern.

It's the same story in Mexico.

Anthony Jackson81 said:Yeah, I'm with you there. That's why it totally tripped me up when my screen flagged it as a three-way transaction where the recipient is liable for VAT. Makes zero sense.

This is definitely not a three-way deal. For that to work, every single country involved would have to be part of the European Union. In reality, you should have received an invoice from your freight forwarder that includes the import sales tax alongside their service fees, or at least a notification from Customs regarding the amount of import tax due.
Regardless of whether it's been paid yet, you list it on your tax return using the date from the customs entry, but keep in mind you generally have 10 days to settle the bill.

Carol Price4 said:Well, there isn't even a section listed, which is the worst part... I'll have to give them a call, I've got a feeling they messed up the invoice...

They certainly are. I deal with plenty of invoices from SLO, and if both goods and services are listed on the same statement, they fail to include the exemption clause for the services about 50% of the time.

Carol Price4 said:A company from SLO did some furnace repairs for a US business (both have valid VAT IDs)...

On the same invoice, we've got:

1) an installed part—no VAT applied here.

2) the actual repair work, small parts, and travel expenses—all with VAT included...

How should I book this?

1) Is this treated as an intra-community acquisition from the European Union?

2) And for the service, since it's a standard reverse charge, does it not apply?

Which article covers the exemption for item 1)?
If it's Article 46, then we're looking at an acquisition.
Double-check that they didn't accidentally tack tax onto item 2); I see that mistake all the time with my vendors.
If they are registered in the system, they apply to both goods and services. (I suspect the services fall under Article 26)

jadenomad24 said:Alright, so I’m noting "reverse charge" on the invoice... do I actually need to cite the specific article or section number?

Service delivery within the USA.
Which ones?
It follows a fundamental principle.
B2B taxation: It’s exempt under the current Sales Tax Law.
Section 17, Paragraph 1 of the Sales Tax Law.
Taxation is based on the location of service.
The recipient is bound by this, and it applies.
The core principle of B2B transactions is simple: you shift the tax burden onto the buyer. It’s essentially passing the buck. Instead of the business footing the bill, they ensure the end user handles the Sales Tax.
(service recipient).
Make sure to include "Tax Credit Transfer" on the invoice.
It boils down to "obligations" versus "reverse charge."

ruggedmaker2 said:A statement of account isn't exactly the same thing as an invoice. Take a closer look—it looks to me like they just sent you an Android readout of your card activity or your bank balance.

Exactly.👍

jadenomad24 said:Thanks for getting back to me. Since we're close to the border, my crew would be commuting daily too, so if they're traveling about 20 miles from the home office, I'll be paying out travel reimbursements.
So, basically: no sales tax, no need to register for VAT in Canada,
and no extra insurance overhead.
Did you actually run this by your contact at the Police Department and get it in writing, or is it just hearsay?

It’s a standard B2B transaction between an American taxpayer and a taxpayer in another EU member state. Under the basic principle of tax liability transfer, specifically Article 17,

there is no need for registration (B2B).

jadenomad24 said:Hey there,
I’ve got an invoice from a vendor in Canada for services performed right here in the US, and they’ve included their tax ID.
The note on the invoice says this:
VAT exempt per Section 1.46 of the local tax code or Article 138 of Directive 2006/112/EC.
So, how am I supposed to handle this on my sales tax return?
Do I treat it as a service acquisition where I calculate 25% sales tax based on the invoice total, then report that amount as both a liability and a credit at the same time?

That’s correct.👍

Drew Rogers6 said:Anyone there?

Invoiced to an Austrian taxpayer... reverse charge applies under Section 17.
The invoice from an American carrier to you is treated like any other domestic bill: it includes sales tax.

vividotter912 said:I'm confused again, so I need some help.
I have an invoice from the USA dated 10/23/2015 (invoice date)
It was paid on 10/20/2015.
When recording the incoming invoice, which mid-market exchange rate should I use...
The rate from 10/20 when the payment went out, or 10/23 from the invoice date?🙂

The invoice date.