Doing business with USA member states

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.🤷

Drew Rogers6 said: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.🤷

That’s exactly what I was just about to ask. 😬 I’ve gone ahead and continued my work on the billing accounts, moving all those payment terminals over to the new module.

I’m currently staring at my screen in a complete state of confusion regarding these cash receipts from the Fiskal1 tablet—specifically the ones issued between July 1st and July 10th. Since I hadn't integrated the new Sales Tax module yet, I went ahead and logged them into the old IRS regular accounts ledger, though I neglected to include the payment dates. This is a business operating on a cash basis, so that distinction matters. Now, I find myself in this tedious position where I have to go back, delete everything from the old system, and re-enter it all into the new Sales Tax module and the new IRS ledger. My concern is the sequencing. If the very last entry in my old regular accounts ledger (under the old Sales Tax module) was, say, number 108, does the numbering in the new module's IRS ledger pick up right where I left off at 109, or am I expected to restart the entire sequence at 1?

Nicole Lee6 said:That’s exactly what I was just about to ask. 😬 I’ve gone ahead and continued my work on the billing accounts, moving all those payment terminals over to the new module.

I’m currently staring at my screen in a complete state of confusion regarding these cash receipts from the Fiskal1 tablet—specifically the ones issued between July 1st and July 10th. Since I hadn't integrated the new Sales Tax module yet, I went ahead and logged them into the old IRS regular accounts ledger, though I neglected to include the payment dates. This is a business operating on a cash basis, so that distinction matters. Now, I find myself in this tedious position where I have to go back, delete everything from the old system, and re-enter it all into the new Sales Tax module and the new IRS ledger. My concern is the sequencing. If the very last entry in my old regular accounts ledger (under the old Sales Tax module) was, say, number 108, does the numbering in the new module's IRS ledger pick up right where I left off at 109, or am I expected to restart the entire sequence at 1?

It's 😉

I'm just browsing through the threads to double-check your answers. 🤣

It’s the same deal we dealt with when the sales tax jumped from 23% to 25%. We had to manually input the first IRS number for the new module, essentially picking up right where the previous one left off.

And yeah... I haven't actually grabbed the new license yet, so I'm just talking hypothetically here. ☕

Henry Edwards33 said:It's 😉

I'm just browsing through the threads to double-check your answers. 🤣

It’s the same deal we dealt with when the sales tax jumped from 23% to 25%. We had to manually input the first IRS number for the new module, essentially picking up right where the previous one left off.

And yeah... I haven't actually grabbed the new license yet, so I'm just talking hypothetically here. ☕

😂 for verification

Wait, I don't follow. Are we talking about number 1 or number 109? They didn't specify anything regarding that in the documentation, so I sent them an email. Just waiting to hear back. 😬

EDIT: Got a reply; the new IRS ledger starts over at number 1 effective July 1st.

hm 🤔

Nicole Lee6 said:😂 for verification

Wait, I don't follow. Are we talking about number 1 or number 109? They didn't specify anything regarding that in the documentation, so I sent them an email. Just waiting to hear back. 😬

EDIT: Got a reply; the new IRS ledger starts over at number 1 effective July 1st.

hm 🤔

Really? 🤔

Well, good to know...

Hey there!

I could really use a little guidance here. I’m currently operating as a sole proprietor under the simplified tax system, specifically registered to provide market research services.
So, I'm not currently registered for sales tax since my business turnover stays pretty small, but I have a quick question regarding a client of mine. They happen to be a limited liability company based somewhere within the European Union, and I was wondering how that affects things on my end?

Based on the latest updates I've been digging through—specifically that section in the FAQ regarding the new tax law posted on the Police Department's website today—it looks like things are a bit more specific than I initially thought. If you're running a small business as a simplified taxpayer and you're providing services to a corporation located somewhere else in the European Union, you actually have to make sure you get their VAT ID before you even think about sending over that invoice. Isn't it interesting how those little details can trip you up? But the good news is, even with that extra step, you still get to stay outside of the standard VAT system.

Of course, I didn't actually realize that until after I had already sent out and been paid for my very first invoice of that kind—which, naturally, happened sometime after July 1st, 2013.

So, now that we're standing here at this crossroads, what on earth comes next?
So, should I go ahead and look up their VAT ID first, and then just go ahead and draft a brand-new invoice using that number?
So, how does everything actually work once the bill has already been paid? Does it involve a full reversal or some kind of refund process?

Just to clarify my situation, I run my business as a sole proprietor under a simplified tax status, so I don't actually maintain any formal accounting books beyond keeping track of my daily revenue and filing my standard transaction reports.

Thanks so much!

By the way, I went ahead and posted this same question over in the thread about issuing invoices too, just to be safe.

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! 🙂

I’ve got a quick question about this snippet from http://www.irs.gov/tax-topics/vat-regulations...05.2013%29.pdf:

Taxpayers who have been assigned a VAT identification number are considered monthly taxpayers. This means their accounting periods run from the first to the last day of each month, and they are required to file their VAT returns on a monthly basis.

If I'm reading this right, does it mean those of us who were previously on a quarterly filing schedule have to switch over to monthly reporting once we get our VAT ID? Has anyone actually gone down to the IRS to double-check this?

Hi there,
I could really use some help here..
Which section of the tax code should I cite when invoicing for transportation services sent over to Mexico? Should I be looking at Section 13, Subsection 1, or is it Section 17, Subsection 1? And this whole reverse charge concept... it’s honestly making my head spin...

Drew Rogers6 said: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! 🙂

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.

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!🙂

Nicole Lee6 said:😂 for verification

Wait, I don't follow. Are we talking about number 1 or number 109? They didn't specify anything regarding that in the documentation, so I sent them an email. Just waiting to hear back. 😬

EDIT: Got a reply; the new IRS ledger starts over at number 1 effective July 1st.

hm 🤔

Okay. In my case, they told me the new IRA in the updated module begins at number 1.

I was just discussing this with a colleague today, and she mentioned that her email response was different. Apparently, if the last sequence number for the IRA in the old module was 206, then the first sequence number for the IRA in the new VAT module should be 207. 😕🤷☕

I'm curious how people actually working in the field are going to handle this... I'd love to hear your thoughts.
Are you planning to just continue the existing sequence, or are you all starting fresh from number 1?

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.

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.

If I don't enter the first sequence number into the IRA ledger, will it just default back to starting at number 1? Right now, I'm stuck: should I manually input "207" so the subsequent numbers follow that sequence, or should I just leave it blank and let the system reset to 1?🤔

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.

My developer is still ghosting me, so I’m sitting here with absolutely nothing to show for it 🙂
. Honestly, I’m just scrolling through this thread with pure envy, watching you guys actually getting your bookkeeping done. 😁

Drew Rogers6 said: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.

😂 Honestly, I don't even know what to do anymore except laugh... It's absurd. I called them personally while my colleague was busy sending an email, and we agreed that I would follow up with a formal email myself. Then, today, I get a response stating that the filing sequence starts right back at number 1 😂 yet they told her that the numbering continues sequentially... 😂🤣

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 need to head over to an Unknown in Austin to pick up some furniture for the office. They’re going to charge me their local sales tax on the purchase. When we record this in our books, do we need to account for our own state sales tax too?
Someone mentioned that we pay the local tax at the store, and then we just calculate the difference to hit our 25% rate here at home. Is that how it works?

Does anyone know the actual process?

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. 🙂