Doing business with USA member states

James Phillips38 said:Hello everyone,
I’m looking for some guidance here. In our VAT return, we recorded an acquisition of goods from the USA, and we filed the tax under a partner who isn't actually in the tax database. Honestly, I have no idea how this oversight happened.
The IRS called us asking to provide the entity's ID for verification, but it turns out the ID doesn't exist.
What’s the best way to handle this mess? This was for last month's filing.

Just void the form. If there's no valid ID on the invoice—meaning the database check failed—then that invoice shouldn't even be recorded in the first place.

Michael Kern56 said:Thanks for the reply. I was honestly lost on how to actually request a tax refund because the last time I checked the IRS website, there wasn't even a clear link for it. I tried digging through the online portal, but it was a total dead end. Has anyone here actually successfully navigated this system to get their money back?

We just submit a formal request in a free-form format.

David Green642 said:Just void the form. If there's no valid ID on the invoice—meaning the database check failed—then that invoice shouldn't even be recorded in the first place.

Thanks. I'm still getting my bearings here, and I'm actually asking on behalf of a colleague.
So, are we essentially recording this via general ledger as an expense without entering it into the tax books?
Also, if an individual from a USA country provides lodging services to workers traveling within the USA, are they required to be in the VAT system, or do they need their own Tax ID?

Anyone here able to help me out?

We picked up some inventory from a supplier over in Ireland under EXV terms. We’re then flipping that exact same stock to a buyer who's also a tax entity based right there in Ireland. The goods aren't even touching American soil. How am I supposed to book the incoming invoice from the supplier, how do I handle the outgoing invoice, and whose VAT am I actually dealing with 🤷

ruggedmaker2 said:Look, if the seller lists the sales tax on the invoice, you end up paying it to them. Then, you have to go through the whole headache of filing for a refund through the IRS: http://www.irs.gov/sales-tax-refund-info
Everything you need to know is right there.

Now, if the seller doesn't list their own sales tax because they're passing the tax obligation over to you—which happens—then your business handles both the tax owed and the input credit at the same time. You report it on your tax forms and your acquisition filings. We actually covered this earlier in this thread, so maybe scroll up and give it a read.
(Assuming you're registered for sales tax, anyway.)

You've got the right idea. If you buy a bed from a registered business in another state, that item is taxed here in the US based on our local rates. Since the tax burden is shifted to you, your business owes the tax but also gets the credit simultaneously.
As for how that "tax transfer" language appears on the receipt, that depends entirely on the specific state laws where the seller is located.
Foreign buyers write their invoices according to their own state's rules. They might use a full sentence citing their specific state code, or something vague like "tax-exempt delivery"... it all just depends on whatever their local laws dictate.

🙏🙏

So the bottom line is whether that specific phrase exists on the invoice indicating a transfer of liability; if it does, you handle the sales tax and the deduction simultaneously. If that phrase isn't there and they just list sales tax, you follow the standard VAT-style procedure using our domestic rates?

And the difference being that with the sales tax version, you *have* to file a report, whereas with the other way, you only do it if you want to? If I'm following this correctly...

What does it mean when some people show that transfer of liability and others don't? Probably just that they have the obligation to register for taxes or they don't—if they aren't registered, they can't do the transfer, and if they are, they do.

David Green642 said:We just submit a formal request in a free-form format.

Wait, what on earth does "free-form request" even mean? I just signed up on the https://www.irs.gov

My head is absolutely spinning looking at all this paperwork I’m supposed to fill out—it’s endless! I’ve got a ton of questions:

1. If one (or maybe a few) of my receipts doesn't follow their specific tax refund guidelines, are they going to reject the whole damn thing or just pick through them selectively?

2. Does every single receipt (like highway tolls) have to have our company name printed right on it?

3. Does the receipt actually need to show their sales tax?

4. For the 2013 tax year, do we need to get everything submitted by September 30th, 2014?

Thanks, 🙂

Ever since the Value Added Tax Act was implemented, I have been feeling absolutely 🤮

We are in the process of acquiring a personal vehicle from an individual based in Austria. It is about eighteen months old, but it has already passed 3.2 miles. Does this qualify as a "new" vehicle under current regulations? One specific criterion is met, but the other is not.

A client of our accounting firm is purchasing this for their service business, which means they are entitled to input tax credits and can claim 100% of the costs as deductible. If this is classified as a new vehicle, I have to handle the VAT through an offsetting method (recording both the liability and the credit), file all those tedious NPS and VAT-S forms, and pay the additional tax.

Regarding the VAT taxable base, does the specific duty levied by Customs get included in that calculation?

My apologies for the barrage of questions, but if anyone happens to know 😘

If you're buying a car from just some guy on Craigslist, I doubt he’s even registered for sales tax. 🤷 I mean, I'm pretty sure there's no tax involved in a private sale like that.
But take a look at this:
http://www.irs.gov/tax-topics/sales-tax-regulations...06.2013.pdf

http://www.irs.gov/tax-topics/sales-tax-guidelines...aspx?id=18690

Drew Rogers6 said:Wait, what on earth does "free-form request" even mean? I just signed up on the https://www.irs.gov

My head is absolutely spinning looking at all this paperwork I’m supposed to fill out—it’s endless! I’ve got a ton of questions:

1. If one (or maybe a few) of my receipts doesn't follow their specific tax refund guidelines, are they going to reject the whole damn thing or just pick through them selectively?

2. Does every single receipt (like highway tolls) have to have our company name printed right on it?

3. Does the receipt actually need to show their sales tax?

4. For the 2013 tax year, do we need to get everything submitted by September 30th, 2014?

Thanks, 🙂

🙂 We clearly had a misunderstanding; I was talking about the monthly sales tax refund, not the VAT refund system.🙂

ruggedmaker2 said:If you're buying a car from just some guy on Craigslist, I doubt he’s even registered for sales tax. 🤷 I mean, I'm pretty sure there's no tax involved in a private sale like that.
But take a look at this:
http://www.irs.gov/tax-topics/sales-tax-regulations...06.2013.pdf

http://www.irs.gov/tax-topics/sales-tax-guidelines...aspx?id=18690

Thanks. I'll go dive into these documents now.

Not sure where this belongs, but maybe someone here could actually use it. It’s pretty straightforward enough:
When the tax liability kicks in

I guess we'll just have to wait and see if those upcoming changes to the Value Added Tax Act actually change anything for us—fingers crossed, I suppose. 😁

ruggedmaker2 said:Not sure where this belongs, but maybe someone here could actually use it. It’s pretty straightforward enough:
When the tax liability kicks in

I guess we'll just have to wait and see if those upcoming changes to the Value Added Tax Act actually change anything for us—fingers crossed, I suppose. 😁

thanks Daisy, much appreciated! 😉

So, I’ve got an invoice from a transport partner showing a 0.00 USD tax amount, and they’re already in our system. The invoice is dated May 31st—can I still file this for my June VAT return, or am I out of luck?

Hello everyone, I could really use some guidance here!
I recently started a new job, and they’ve already tasked me with entering incoming invoices into the tax ledgers. Since I’ve never handled this specific type of accounting before, I’m feeling a bit nervous about making a mistake—especially since I'm still technically on my probationary period.
I noticed that all our business partners are registered in the official federal database and show a tax rate of 0.00. Does that mean they are passing the tax burden onto us?
What I’m truly struggling with is knowing exactly which column of the sales and use tax form these should be entered into.
I have several types of invoices to process:
equipment rentals, masonry work, purchasing formwork, worker lodging, engineering services, equipment transport, and subcontractor services.
Does all of this get recorded on the tax form as an acquisition of goods or services, and if so, at what rate? Also, do I list them under both the delivery and receipt columns (the assessment category), or is there a different way to handle it?
Additionally, how should I handle invoices from April and May? Do I include those in the June filing, or is there a different procedure for late entries?
I also noticed some invoices where nothing is specified regarding tax transfers, even though the vendor is in the federal database and shows a zero tax rate. Should these still be included in the tax filings?
Whoever can help me out gets a chocolate bar!😍

I was hoping someone could confirm if I am handling this correctly...

A small business owner—specifically a small taxpayer not currently in the VAT system—has registered for VAT purposes and obtained a VAT ID. They are now supplying goods to a taxable entity in Austria (which I have already verified via FedEx).

The small business owner includes the following clause on the invoice: VAT exempt under Section 41, Paragraph 1, "reverse charge."

I intend to file the tax return by August 20th.

I’m jumping in here with the same questions—if we're looking at invoices from 2013, how are we even supposed to book those? Are we allowed to input them in this current fiscal year at all? And if we do, do we file a retroactive sales tax return or what?

🙂

ruggedmaker2 said:If you're buying a car from just some guy on Craigslist, I doubt he’s even registered for sales tax. 🤷 I mean, I'm pretty sure there's no tax involved in a private sale like that.
But take a look at this:
http://www.irs.gov/tax-topics/sales-tax-regulations...06.2013.pdf

http://www.irs.gov/tax-topics/sales-tax-guidelines...aspx?id=18690

Thanks, 😉ruggedmaker2
.
I have read through everything, and while things are much clearer now, I still haven't found answers to all my specific questions. 🙂

- Does a vehicle need to satisfy both conditions to be officially classified as "new"?
- If so, does that trigger a taxable acquisition (meaning an obligation to pay and a potential input credit)?
- And what about excise taxes—are those included in the base price?

If anyone has dealt with a similar situation, I would appreciate it if you could share your experience.

David Green642 said:I’m jumping in here with the same questions—if we're looking at invoices from 2013, how are we even supposed to book those? Are we allowed to input them in this current fiscal year at all? And if we do, do we file a retroactive sales tax return or what?

🙂

Does anyone actually have an answer to that? 🙂

Look, I don't have a perfect answer for you, but I've been through my own nightmare with a lost acquisition invoice 🙂

Back in the day, I wasn't even registered for sales tax, but I accidentally included an acquisition invoice on one of our filings.
The actual invoice never hit my desk, and neither did the shipping manifest. Honestly, I had zero clue we’d even made an acquisition from Austria.
I didn't hear a peep about it 😁 until the IRS called me up to tell me there was a discrepancy in the books.
See, our supplier reported it, but we hadn't... and somewhere deep in the tangled mess of European Union bureaucracy, they realized the numbers didn't match (whatever that means), so they flagged our local tax office. They called me, and I had to scramble to fix all the sales tax forms.
(And of course, I was tearing the office apart looking for that damn manifest and invoice... eventually found them buried in some random folder at the accountant's desk. 😁 )

But in my case, it had only been maybe two or three months, everything fell within the same fiscal year, and the IRS actually reached out to give me a heads-up.
But if you're sitting on an acquisition invoice from 2013 that just showed up now, and the IRS hasn't come knocking... 🤷

I’ve been getting conflicting advice on this, so now I’m feeling pretty lost
Does the concept of "use" apply if you purchase goods or services within a European Union member state and then install them into a property located in that same country?
To be clear: those goods or services aren't being imported into the US; they are bought and installed locally. Should these types of invoices be reported as a "use" transaction on the sales tax return? I've consulted several tax professionals, and honestly, nobody seems to have a straight answer.