Doing business with USA member states

The instructions for filling out the sales tax forms say the totals from lines 5 through 7—you know, the stuff about acquiring goods within the USA at certain rates—might not match the total value in box (13).

I honestly have no clue why those two numbers would ever be different.
Anyone actually know what's going on?

Can someone help me out here?
We just shipped some goods over to the USA.
We're covering the shipping costs, and the carrier is based out of Canada.
They sent over an invoice without any sales tax included.
I guess I need to know—do I have to account for that tax on my end while simultaneously claiming it as a credit?

Thanks

I handle the bookkeeping for a travel agency. And now, for the first time, I’m staring down an invoice subject to special taxation rules.
Does anyone out there actually know how to record incoming and outgoing invoices under these specific tax procedures? From what I can gather... they don't count as expenses, nor as revenue—only the margin-based sales tax on that specific reservation counts toward income.

thanks

We just got a shipment in from Italy. Everything cleared VAT and all the tax paperwork back in February. Now, we’ve gotta send some of it back because the quality is honestly pretty subpar. What’s the play here? Do I need to issue a credit memo and file a VAT adjustment with the IRS? Should I handle a new CMR, or is there something else I'm missing?

I handled a return within the same month, but the logic remains the same.
Once I got the supplier to approve the refund amount, I logged it as a VAT credit,
though I haven't filed the paperwork yet. My take? We aren't issuing an invoice here; we're just seeking
supplier approval, which impacts our VAT, not our Zillow valuation.

The guys over at the FBI told me it’d be cleaner if I just invoiced them for the goods directly—then I could put together a return authorization and a Bill of Lading, or even just a formal statement to prove the shipment was sent back
across the border.

I’ve already secured the credit memo from the supplier, and I’ve had the CMR and all the other paperwork in hand since the shipment cleared customs.
If my goal were to issue an invoice, I’d have to process this through our warehouse and run it as a wholesale transaction first. If you guys are strictly in retail or distribution, then maybe this approach works for you because you’re essentially reselling stock. But for us, we’re dealing with raw material returns that we simply can’t
use in our own production line. We drafted a pro forma invoice, a consignment report, and a shipping statement to serve as
proof that the goods were returned. However, instead of booking our own invoice, we recorded their credit memo and accounted for the sales tax

So, we’re basically just a storefront.

I’m trying to figure out what kind of paperwork I actually need to prove a service was "performed within the USA." When it comes to shipping goods around the States, I usually just stick a CMR in the file along with a statement confirming the cargo left California, but what about services? What’s the standard for proving they were actually rendered?

jadenomad24 said:I’m trying to figure out what kind of paperwork I actually need to prove a service was "performed within the USA." When it comes to shipping goods around the States, I usually just stick a CMR in the file along with a statement confirming the cargo left California, but what about services? What’s the standard for proving they were actually rendered?

Personally, I always print out proof that the client is a registered tax entity in NY (using the VIES database). In my specific line of work—hauling freight—I also keep the CMR, the signed bill of lading, weight tickets, delivery receipts, and all that good stuff handy.

jadenomad24 said:I’m trying to figure out what kind of paperwork I actually need to prove a service was "performed within the USA." When it comes to shipping goods around the States, I usually just stick a CMR in the file along with a statement confirming the cargo left California, but what about services? What’s the standard for proving they were actually rendered?

What kind of service are we talking about here?
When it comes to transport services, I’m using the exact same stuff as Drew Rogers6.

Look, I’m not talking about the actual freight—I know how transport works.
This is about the service itself being tax-exempt because we're invoicing a client based in the USA. Now, I'm stuck wondering what else they'd want besides the VIES database info? Usually, the CMRs travel right along with the cargo and the driver, but what's left for us to hold onto?

I mean, I guess it all just boils down to what kind of service you're actually looking at.

I’ll check in with the Democratic Party about it.

Help me out here!

If I'm billing a service like transportation to another USA state, does the reverse charge rule fall under Section 17, Paragraph 1?

And is it the exact same deal for physical goods?

Drew Rogers6 said:Help me out here!

If I'm billing a service like transportation to another USA state, does the reverse charge rule fall under Section 17, Paragraph 1?

And is it the exact same deal for physical goods?

devil, I see you're lurking... any idea?

Regarding the goods, we're looking at Section 41, Subsection 1, Paragraph (a)

ruggedmaker2 said:Regarding the goods, we're looking at Section 41, Subsection 1, Paragraph (a)

thanks 👍

I really need some help here!
I’ve got to put together a bid for some supplies being paid for by the US government. The goods are actually being donated to build out restrooms at one of our local elementary schools. So, basically, the stuff stays right here in the States, but the US government is footing the bill. I’m in a bit of a bind. When I write up the quote, should I be marking it as "E"? Is this exempt from sales tax? And if so, which specific clause or regulation covers that?

We just received an invoice from a vendor based in the Netherlands for a shipment of goods. The inventory isn't actually leaving the US; we're keeping it here and then invoicing our client over in Italy.
I could use some help with the bookkeeping on this. For the vendor's invoice, do I include it in the sales tax return under sections II.7 and III.7? Also, more importantly, how do I handle the invoice we’re sending to the customer in Italy? Since the goods are staying right here in the States, I know I have to charge sales tax on that invoice. But what comes after that?