Doing business with USA member states
in Business, Accounting & Taxes ·
copperstag95 said:My two cents:
I suppose if the delivery is handled by a firm that isn't registered for sales tax, then the place of supply is essentially their own home base; therefore, they wouldn't be charging any sales tax, and you, acting as the buyer, wouldn't be calculating any sales tax either, I guess.
That was my initial thought, but then I started overthinking all the "what ifs," and I just can't find any clear examples.😁
Jeremy Anderson63 said:If I'm following you, you're just buying goods from some "small business" over in the European Union.
In that case, you look at Section 4, subsection 2, paragraph a of the Tax Law which defines what counts as taxable. Based on that, a "small taxpayer" isn't treated as a full "taxable entity." That means there isn't even a taxable acquisition happening in the other European Union country where the shipment ends up once they complete the delivery (in this case, here in the US).
You don't fill out any special VAT forms. You just record the incoming invoice as a domestic one.
Exactly. We wouldn't even be able to file sales tax forms because the company isn't in the database, so they wouldn't accept the filing anyway. Thanks so much for the answers.🙂