Doing business with USA member states

Thanks for the help everyone, but now I’m stuck on something else again. My bank sent me a notice saying I need to provide my tax card details to the IRS, and frankly, I'm lost. Do I actually have to physically trek down to the tax office, or can I just pull up this card online through the IRS website? Thanks in advance.

mistynomad3 said:Thanks for the help everyone, but now I’m stuck on something else again. My bank sent me a notice saying I need to provide my tax card details to the IRS, and frankly, I'm lost. Do I actually have to physically trek down to the tax office, or can I just pull up this card online through the IRS website? Thanks in advance.

Depends on how you deal with your bank.
My bank has been taking PDFs (or printouts) from the IRS website for years.

Hey everyone,

I’ve got a bit of a dilemma 😕here.
Basically, my company sells wine, and we have a client looking for a very specific vintage from an old archive. The problem is, we don't actually have enough in our commercial stock to fulfill the order. However, the owner of the company happens to have this exact wine sitting in his private collection at home. I'm stuck on how to handle this properly from an accounting standpoint—specifically, how to execute a buyback from him so everything stays above board. My instinct is that we need a formal purchase agreement between the owner and the business since we're buying from an individual. But what comes after that? Does sales tax need to be factored into that contract, and how do I actually log this into our inventory system if there isn't a standard commercial invoice involved?

My second concern is whether this is even legal to do. I’m not sure if we can even put this wine up for sale once we've bought it, given that it hasn't gone through the usual regulatory labeling and certification processes required for our standard inventory.

Hi everyone!
🙂I have a quick question regarding some paperwork. I acquired assets from the USA back on August 25th. I have the delivery note, but I just received the invoice today, September 5th. Interestingly, the invoice lists the delivery note number and the original date of August 25th.
Which exchange rate should I be using, and which month's VAT filing does this fall under—August or September? 🙂
Should I reach out to the vendor to confirm which month they plan to record this in their books?

Thanks so much in advance! 🙂

Douglas Nguyen30 said:Hi everyone!
🙂I have a quick question regarding some paperwork. I acquired assets from the USA back on August 25th. I have the delivery note, but I just received the invoice today, September 5th. Interestingly, the invoice lists the delivery note number and the original date of August 25th.
Which exchange rate should I be using, and which month's VAT filing does this fall under—August or September? 🙂
Should I reach out to the vendor to confirm which month they plan to record this in their books?

Thanks so much in advance! 🙂

From what I understand, you typically use the mid-market exchange rate on the actual date the invoice was issued.

Personally, I’d record this in August. My guess is the vendor will book it in August too, since that’s when the invoice was officially generated.

Daniel Reed68 said:From what I understand, you typically use the mid-market exchange rate on the actual date the invoice was issued.

Personally, I’d record this in August. My guess is the vendor will book it in August too, since that’s when the invoice was officially generated.

So, here's the deal: the invoice was issued on September 5th, but it lists a shipping note dated August 22nd. I called the IRS, and I'm getting mixed signals—one advisor says the sales tax belongs in August, while another insists it goes in September! They say to use the mid-market rate based on the invoice date, but now I'm just completely lost...🤷 😕

Douglas Nguyen30 said:So, here's the deal: the invoice was issued on September 5th, but it lists a shipping note dated August 22nd. I called the IRS, and I'm getting mixed signals—one advisor says the sales tax belongs in August, while another insists it goes in September! They say to use the mid-market rate based on the invoice date, but now I'm just completely lost...🤷 😕

Determining when the Sales Tax Liability arisesV-a

- The obligation to account for sales tax occurs at the moment of the "taxable event."
- A taxable event and the resulting tax liability occur:
when goods are delivered or services are rendered.
Additionally, if the delivery has already happened but no invoice has been issued yet, the tax liability is triggered the moment that taxable event actually took place.

In short, your sales tax liability belongs in August. However, you calculate the actual invoice amount using the mid-market exchange rate from the Federal Reserve on the day the invoice is officially issued.

p.s.
Regarding the legal deadline for issuing invoices—for deliveries made to a taxpayer in a different fiscal period (the acquirer)—the invoice must be issued no later than the 15th day of the month following the month in which the taxable event occurred.

Daniel Reed68 said:Determining when the Sales Tax Liability arisesV-a

- The obligation to account for sales tax occurs at the moment of the "taxable event."
- A taxable event and the resulting tax liability occur:
when goods are delivered or services are rendered.
Additionally, if the delivery has already happened but no invoice has been issued yet, the tax liability is triggered the moment that taxable event actually took place.

In short, your sales tax liability belongs in August. However, you calculate the actual invoice amount using the mid-market exchange rate from the Federal Reserve on the day the invoice is officially issued.

p.s.
Regarding the legal deadline for issuing invoices—for deliveries made to a taxpayer in a different fiscal period (the acquirer)—the invoice must be issued no later than the 15th day of the month following the month in which the taxable event occurred.

Thanks.
--- I just called the tax authorities and some Sales Tax advisors; the tax liability goes into September based on the invoice date, using the Federal Reserve's mid-market rate on the date of the invoice.

Douglas Nguyen30 said:So, here's the deal: the invoice was issued on September 5th, but it lists a shipping note dated August 22nd. I called the IRS, and I'm getting mixed signals—one advisor says the sales tax belongs in August, while another insists it goes in September! They say to use the mid-market rate based on the invoice date, but now I'm just completely lost...🤷 😕

Daniel Reed68 said:Determining when the Sales Tax Liability arisesV-a

- The obligation to account for sales tax occurs at the moment of the "taxable event."
- A taxable event and the resulting tax liability occur:
when goods are delivered or services are rendered.
Additionally, if the delivery has already happened but no invoice has been issued yet, the tax liability is triggered the moment that taxable event actually took place.

In short, your sales tax liability belongs in August. However, you calculate the actual invoice amount using the mid-market exchange rate from the Federal Reserve on the day the invoice is officially issued.

p.s.
Regarding the legal deadline for issuing invoices—for deliveries made to a taxpayer in a different fiscal period (the acquirer)—the invoice must be issued no later than the 15th day of the month following the month in which the taxable event occurred.

Douglas Nguyen30 said:Thanks.
--- I just called the tax authorities and some Sales Tax advisors; the tax liability goes into September based on the invoice date, using the Federal Reserve's mid-market rate on the date of the invoice.

🤔 So, does everything really fall into September? I was told that the VAT liability hits in August, while the input tax gets filed in September. In my specific case, we’re talking about services, but it feels like I’ll end up dumping both the obligation and the credit into the September filing for these particular jobs—based on the mid-market exchange rate on the invoice date. To clarify: the services were actually performed throughout August, but the invoice itself is dated September 5th and explicitly states the service period was August 1st through August 31st. It all seems a bit messy.

So, we realized today that we totally botched the sales tax calculation back in July for $45. We were so caught up in the acquisition chaos that everything else just slipped through the cracks, I guess. I'm seeing people on the forums say you can just file an amended return and pay the $45 difference. But what about interest? Who even handles that part? Anyone here dealt with this before?

stormyhound3 said:So, we realized today that we totally botched the sales tax calculation back in July for $45. We were so caught up in the acquisition chaos that everything else just slipped through the cracks, I guess. I'm seeing people on the forums say you can just file an amended return and pay the $45 difference. But what about interest? Who even handles that part? Anyone here dealt with this before?

Just call up the IRS, send over the amended form with a quick explanation, and pay the gap—easy as that. As for the interest, it’ll just show up on your online tax account, then you pay it when you're ready.

Thanks a ton! Form's sent, difference paid up. Some lady at the IRS told me I probably won't see that interest hit until tomorrow once she finally gets everything logged in.

Nicole Lee6 said:🤔 So, does everything really fall into September? I was told that the VAT liability hits in August, while the input tax gets filed in September. In my specific case, we’re talking about services, but it feels like I’ll end up dumping both the obligation and the credit into the September filing for these particular jobs—based on the mid-market exchange rate on the invoice date. To clarify: the services were actually performed throughout August, but the invoice itself is dated September 5th and explicitly states the service period was August 1st through August 31st. It all seems a bit messy.

Exactly. Everything goes into September for me, regardless of whether the invoice lists an August shipping number or date. As for services, I'm still a bit uncertain...

Douglas Nguyen30 said:Exactly. Everything goes into September for me, regardless of whether the invoice lists an August shipping number or date. As for services, I'm still a bit uncertain...

Well, yeah, that’s exactly the point. When you're dealing with physical goods, it's straightforward—you look at the invoice date, which legally has to be no later than the 15th of the month following delivery...

But when it comes to services, they've really made a mess of things. They don't care about the invoice date; they care about when the service was actually performed. That completely undermines the whole concept of VAT as a calculated category. There are supposed to be regulatory changes coming to fix this, but if I stick to the current rules, I have to physically pay the tax upfront. Then, next month, when the actual service invoice arrives, I'm supposed to claim the input credit. Honestly, I think I'll just book the whole thing in September and potentially face a late filing penalty for the VAT return 😬 though maybe I won't 😬 maybe the IRS won't even notice.

I wanted to run a quick scenario by you all. I have a client based in Italy who places all his orders with me, but I ship the goods directly to his warehouse located in Germany. Since my Italian customer is registered for VAT in Germany under his Italian tax ID, I handle everything via a consolidated return. On the invoice, I make sure to cite the relevant tax exemption code.
This should be perfectly fine, right? It wouldn't qualify as a triangular trade situation, would it?

I could use some help here....
A small business owner just settled some invoices that didn't include sales tax, and now I'm stuck. I have no idea which column on the sales tax return this belongs in.
It was for an international shipping service—so it was tax-exempt.
Thanks.

Does anyone here have any insight on this, or perhaps there’s already been an inquiry regarding it? I am wondering if companies can still claim input VAT on their business invoices for expenses incurred from July 1, 2013, onwards. ?

Thanks in advance🙂

We’re running a construction job at a site here in the States—standard stuff, we’re claiming the sales tax on materials from our incoming invoices. We report everything to the client, who happens to be an individual, isn't a resident of the US, and is currently based in Canada. I noticed there’s a specific line on the tax forms for services provided to entities without a domestic seat (those VAT-exempt transactions). Does that actually apply to my situation?

dustyscout8 said:Does anyone here have any insight on this, or perhaps there’s already been an inquiry regarding it? I am wondering if companies can still claim input VAT on their business invoices for expenses incurred from July 1, 2013, onwards. ?

Thanks in advance🙂

If you're paying corporate income tax, you can claim those R2 invoice credits immediately starting July 1st.

northernseal12 said:We’re running a construction job at a site here in the States—standard stuff, we’re claiming the sales tax on materials from our incoming invoices. We report everything to the client, who happens to be an individual, isn't a resident of the US, and is currently based in Canada. I noticed there’s a specific line on the tax forms for services provided to entities without a domestic seat (those VAT-exempt transactions). Does that actually apply to my situation?

Nope, that sale is taxable because you're billing a private individual. You can't just dump it under exempt transactions.
That person is your end consumer, so you have to charge them our standard sales tax.