Doing business with USA member states

I'm filing under the old rules for section III.6, and since I'm doing things by the book, I have to include a detailed explanation along with my sales tax return.

I need some help here. I’ve already filed all my sales tax returns on time through the IRS portal. But now, one of my clients just dropped off an invoice from last July—apparently, they "forgot" about it—for some services imported from Canada. Now I have to go back and fix my previous filings. I already sent everything electronically, so how the hell do you actually file an amended return once it's already been submitted online?
Thanks for the help.🤷

Arthur Bishop6 said:I need some help here. I’ve already filed all my sales tax returns on time through the IRS portal. But now, one of my clients just dropped off an invoice from last July—apparently, they "forgot" about it—for some services imported from Canada. Now I have to go back and fix my previous filings. I already sent everything electronically, so how the hell do you actually file an amended return once it's already been submitted online?
Thanks for the help.🤷

It's pretty straightforward: you just file the corrected version. They will process the most recent submission and essentially disregard the previous one. This happened to me once, and there was no need to call the IRS or anything; you simply resubmit the accurate paperwork.

Brenda Chase3 said:It's pretty straightforward: you just file the corrected version. They will process the most recent submission and essentially disregard the previous one. This happened to me once, and there was no need to call the IRS or anything; you simply resubmit the accurate paperwork.

Thanks a ton.🙏

Jose Myers said:Thanks, but we aren't talking about services here—it's goods and the sales tax paid on July 14, 2013.

- In my case, I imported goods on June 28th, paid the import tax on July 7th, and filed the June sales tax return right on schedule by July 31st.
....... So, I spent time calling the IRS, over and over... asking which column should hold the import tax from June if it was actually paid in July. They told me it belongs on the June form, so I filed an amendment on August 12th. They processed it by August 16th, and just like that, everything was settled. 🙂 🙂

ruggedcyclist74 said:Basically, you can pass that tax liability over for cleaning when you're doing a major construction cleanup, but it doesn't apply to your standard, everyday janitorial stuff.

That’s how I’ve always interpreted it—and honestly, that’s the advice I give all my clients...

Thanks for the help, everyone. So, I had another chat with my tax advisor today, and she's telling me it all hinges on whether there's a formal maintenance contract in place (which is a bit of a mixed bag for me—some clients have them, some don't). If there's a contract, we go with the transfer; if there isn't, then sales tax kicks in. I am seriously at my wit's end here, I have no clue what to do next.

I run a small textile shop and need some clarity. Does my store receipt legally have to show VAT if I’m strictly operating within California? Also, did the tax code books or IRS regulations undergo any major shifts after July 1st? Thanks a lot.

mistynomad3 said:I run a small textile shop and need some clarity. Does my store receipt legally have to show VAT if I’m strictly operating within California? Also, did the tax code books or IRS regulations undergo any major shifts after July 1st? Thanks a lot.

Why all the hostility? We're actually reading what you have to say, provided you can manage to write like a functioning adult...☕

I might be a little late to the party here, but I've got a question:
If we're looking at a B2C invoice for a customer outside the local tax system within the USA, there isn't any tax liability transfer for goods or services—meaning the invoice carries local sales tax. In which field of the tax return does that get filed, and does it need to be included in the Collective report?

gentlepilot45 said:I might be a little late to the party here, but I've got a question:
If we're looking at a B2C invoice for a customer outside the local tax system within the USA, there isn't any tax liability transfer for goods or services—meaning the invoice carries local sales tax. In which field of the tax return does that get filed, and does it need to be included in the Collective report?

If you're charging American sales tax, you record it in columns 17-22 of the ledger based on the specific rate, and it needs to be entered into section II3 on the tax return.
You can't include an invoice like that in the Collective report since you don't have a tax ID for the customer.

Hi there,

I’m picking up an acquisition from the USA later this month, but we have to deal with excise taxes on certain goods. I read somewhere that those excise taxes actually get rolled into the base amount when calculating the sales tax at the time of purchase. If anyone out there knows the specifics of how that works, I’d really appreciate some help.

Daniel Reed68 said:Hi there,

I’m picking up an acquisition from the USA later this month, but we have to deal with excise taxes on certain goods. I read somewhere that those excise taxes actually get rolled into the base amount when calculating the sales tax at the time of purchase. If anyone out there knows the specifics of how that works, I’d really appreciate some help.

2. Tax Base for Goods Acquired within the European Union
Section 34.
(1) The tax base for acquiring goods within the European Union is determined based on Section 33 of the Domestic delivery law. In cases involving the acquisition of goods under Section 9, paragraphs 3 and 4 of this Law, the tax base shall be the purchase price of said or similar goods—or, if that price isn't known, the total costs established at the time of delivery.
(2) Included in the tax base as described in paragraph 1 of this section are any excise taxes that the acquirer is required to pay or has already paid for goods subject to such taxes within the European Union.
(3) If the acquirer manages to get a refund for excise taxes paid in the member state where the shipment or transport began after the acquisition has taken place, the tax base for the acquisition will be reduced accordingly.

Benjamin Palmer80 said:If you're charging American sales tax, you record it in columns 17-22 of the ledger based on the specific rate, and it needs to be entered into section II3 on the tax return.
You can't include an invoice like that in the Collective report since you don't have a tax ID for the customer.

That’s what I figured, but hey—better safe than sorry, right?
Thanks a ton for clearing that up.

Carol Price4 said:2. Tax Base for Goods Acquired within the European Union
Section 34.
(1) The tax base for acquiring goods within the European Union is determined based on Section 33 of the Domestic delivery law. In cases involving the acquisition of goods under Section 9, paragraphs 3 and 4 of this Law, the tax base shall be the purchase price of said or similar goods—or, if that price isn't known, the total costs established at the time of delivery.
(2) Included in the tax base as described in paragraph 1 of this section are any excise taxes that the acquirer is required to pay or has already paid for goods subject to such taxes within the European Union.
(3) If the acquirer manages to get a refund for excise taxes paid in the member state where the shipment or transport began after the acquisition has taken place, the tax base for the acquisition will be reduced accordingly.

so what amount goes on the sales tax form if, say, I'm buying coffee from the EU... do I put the supplier's invoice total including tax, or is it the invoice amount + tax + special tax?

Can someone please tell me—do you guys actually log invoices for assets acquired from the USA directly into the asset register? Or do you just keep them in a separate tracking log for overseas acquisitions?

ruggedmaker2 said:Can someone please tell me—do you guys actually log invoices for assets acquired from the USA directly into the asset register? Or do you just keep them in a separate tracking log for overseas acquisitions?

We do! However, our software allows us to open multiple ledgers for a single accounting period. Because of that, we maintain a dedicated "acquisition ledger" where we log just the invoice amounts, excluding any sales tax.

My developer still hasn't fixed the acquisition tracking on my end, so for now, I'm just dumping everything into some miscellaneous IRS bucket... but they really need to get their act together and sort it out. It got me wondering, though—how are the rest of you guys handling this mess?

Yes, we struggled with that too! After July 1st, we went ahead and reorganized our ledger based on the IRS guidebook. Now we have dedicated columns for imports, acquisitions, and other tax-free domestic items. We also set up a specific section in our records for shipments and exports under the IRS guidelines.

Dammit... excuse me, peppers. In the IRS module for EU asset acquisitions, it’s demanding I fill out the input VAT and tax liability accounts in the parameters. I’ve got my old RRIF account numbers, so I just sort of winged it by assigning 1404 and 2403. Does anyone actually have the updated account codes?
Does anyone else split these up?

I need some damn help with this new sales tax form. I used to just plug everything into the old version under input tax on received invoices, but now I’m staring at this thing completely lost. Since I’m running my business right here in the States, where does this actually go? Do I list the input tax from domestic deliveries under section III.2
OR is it under III.3 for the acquisition of goods within the US?

Bottom line: I have no clue where to put the sales tax paid on my domestic invoices.