Posts by Ethan Bailey18

Betty King7 said:Are we issuing the invoice in dollars or what?

Under Section 81 of the Tax Code...:
Invoice amounts must be stated in USD, though you can include any other currency alongside it for convenience.

Betty King7 said:Exporting goods from the USA to Germany—what specific details need to be noted on the invoice, and which documents are required to accompany the shipment?

Technically, you aren't "exporting" in the traditional sense; you are making a delivery within the USA.
Invoice notation:
Reverse charge mechanism applied.
VAT exempt under Section 41, paragraph 1, item a.
The invoice must be accompanied by proof that the goods actually left the US
(such as a signed declaration of shipment or transport documentation) and
verification of the customer's IRS tax ID valid as of the invoice date.🙂

Good morning,
Does anyone know where the person who talked us all into deserting the service has dragged us to and abandoned us like vagrants?🕺

Anonymous said:Forget the chips. Get some damn burek.🙂

Just buy some cheese and flour and make it yourself.🙂

Kate Walker54 said:Let Dima handle the bill; he's the one running the register. 🙂

Give me a break... I'm not paying a dime. Just hand over my chips, please. I don't do sweets.☕

Rachel Palmer56 said:There you have it. They've bolted.🙂
They’re practically tripping over themselves to be at the top of the list.😳
🙂

Cfffff... I don't run from anything.🕺

Rachel Palmer56 said:She’s the one running the welcome committee.🤣
After her, it was me—now everyone else is jumping in.🤣

And exactly what rulebook are you using to justify following her lead?🤔

Anonymous said:you people are bottom feeders!😬

And you're the tribal leader?🤣

What was his actual charge?
And what’s our new designation?☕

Anonymous said:Exactly!😳
who even are you people?
introduce yourselves!🥳

Why the formal "you"?

Anonymous said:Do you actually know how it makes you gain weight?!🙂

Gain weight?🤔
Or more accurately, does it even cause weight gain at all?😁

Sophia James72 said:So, whenever I try to log into the IRS website using Chrome, I pick my certificate and—boom—Chrome just crashes instantly.
In Firefox, it won't even let me load that specific DLL file I need to get things moving, and then the whole browser just dies the second I select it.

Edge doesn't even recognize my certificates at all... great.

Everything else on my computer works perfectly fine in every browser; it’s just this one specific site that keeps nuking my sessions.

Any ideas or tips?

It sounds like a hardware or OS issue.
I can't tell if you're seeing the same thing on your end, but on my machine, it lets me enter my PIN after logging in without a hitch. Then, it displays the standard "certificate not selected" warning in the little pop-up box.

On this computer, everything works fine using the same FinTech card.🤷

(Oh, and I'm also getting those "Internet Explorer is no longer supported" notifications.)

Joshua Morris2 said:Hey there! Has anyone ever dealt with a situation where a vendor billed them for a cancellation fee on an order they placed? I'm trying to figure out if that even belongs on my sales tax return... or if it's just a wash?

If the goods were already invoiced and entered into your inventory... then yes, that cancellation invoice goes right onto the Sales Tax return.
Your best bet is to coordinate with whoever issued the invoice.
If they recorded it in their inventory logs and you put it on your Sales Tax return, everything stays balanced.

Joshua Morris2 said:Thanks for the heads up. I think I’ll just wait two months until the actual delivery happens. By the way, did you guys record the advance payment under a standard CIA entry?

No... just in finance based on the bank statement... specifically for advances received from abroad...
I don't see much point in using a CIA since I'm not touching sales tax—how would you even execute a legitimate CIA then?
You’d just end up duplicating account 121, wouldn't you?
It's never simple for us.🤣

Joshua Morris2 said:Hey everyone!
So, my company just took an advance payment from a client that’s also on the VAT system here in the States. We aren't issuing the actual invoice for another two months when the goods are actually delivered. I'm planning on filing the ZP form once the delivery happens in two months, so I'm not reporting anything right now. As for the advance, I'm just booking the receipt in the CIA books normally, obviously without any tax included.
Is that the right way to handle this? Or am I supposed to be reporting the advance on the ZP? I don't think so... first time I've run into this specific scenario.

I had a similar situation where... well, the advance was paid on the last day of the month, and the delivery didn't happen until the third of the next month.
I waited and filed it when the delivery actually took place.
No one has flagged it yet, and I'm hoping everything looks fine on the annual audit.
I wasn't even sure myself if it was the right move... but hey, I know someone who definitely knows the answer.😉

Ethan Bailey18 said:Look... I have no clue what the former accountant was doing. But...
If those goods aren't actually leaving the US, they don't meet the requirements under Section 41, so you have to charge sales tax..
Whether they decide to register or not isn't your problem..
You are handling a domestic US sale where you bill the customer..
The responsibility to collect the tax lies with you..
If they want a refund, they can register themselves.. That's their call based on their own math..
Honestly, I have no idea why invoices for goods that stayed within the US were being issued without sales tax in the first place
Our state laws might vary slightly, but we still follow the standard federal guidelines and general principles

Regarding your second point... just cite the specific code that allows for the non-taxable status..
We list it as reverse charge.. citing Section
But if they cited an exemption clause, then it's treated as an interstate acquisition
Not sure if that helps, but that's how my auditors handled it..
Maybe some other American accountants can weigh in

The second part was for Betty King7

Aaron Young85 said:Alright, thanks a ton. So, basically, this is a taxable transaction at the 25% sales tax rate and it doesn't go into the zero-rated category. But here’s the kicker—after their accountant practically bled me dry insisting that sales tax had to be on the invoices, now the procurement team is breathing down my neck asking how the hell there's sales tax on them in the first place. Their big question is whether they actually need to register for some kind of VAT refund process here in the US??? We don't really deal with any of that stuff, right?

On top of all that, since I'm still pretty much the rookie accountant here, I noticed the previous guy was entering these exact same invoices (the ones with the sales tax included) into the system as tax-free exports to other US states. So, what am I supposed to do with that mess?

Look... I have no clue what the former accountant was doing. But...
If those goods aren't actually leaving the US, they don't meet the requirements under Section 41, so you have to charge sales tax..
Whether they decide to register or not isn't your problem..
You are handling a domestic US sale where you bill the customer..
The responsibility to collect the tax lies with you..
If they want a refund, they can register themselves.. That's their call based on their own math..
Honestly, I have no idea why invoices for goods that stayed within the US were being issued without sales tax in the first place
Our state laws might vary slightly, but we still follow the standard federal guidelines and general principles

Regarding your second point... just cite the specific code that allows for the non-taxable status..
We list it as reverse charge.. citing Section
But if they cited an exemption clause, then it's treated as an interstate acquisition
Not sure if that helps, but that's how my auditors handled it..
Maybe some other American accountants can weigh in

Aaron Young85 said:But what happens if they don't even have a registered headquarters here in the States? 🤔🙂

That’s irrelevant... the invoice goes to the buyer regardless.
I'm not sure if your software even allows that, but I used to "adjust" my base figures from 12,000 to 12,100 all the time.

Aaron Young85 said:thanks a ton 🙂 just one more thing. When I'm filling out the tax forms, does this count toward taxable transactions within the USA? And should it be included in the aggregate filings?

'taxable transactions in the EU?'
In my view, it’s just a standard delivery of goods within the USA, except you're invoicing an international client. It doesn't go in the ZP because the buyer isn't paying the tax—you are.🤔

Betty King7 said:Could we get a more detailed explanation? We haven't even received the invoice yet. We handled the transport from Canada ourselves.

The accounting side is fine. You need to get that invoice to your customs broker—assuming you aren't handling Intrastat filings internally.
If the goods entered the US, there’s always a document that triggers the invoice...
My brokers are usually pretty on top of things; they demand invoices for everything moving in or out of the country.
Is it possible you haven't been notified that you're now required to file Intrastat?
That requirement is based on your trade volume within the USA over the previous period.
Your best bet is to call the same broker who handles your usual imports and exports. Right now, you're looking at acquisition and delivery.🤔