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Doing business with USA member states

Started by Henry Edwards33 · · 👁 81 views · 1.5K replies

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Participants Henry Edwards33ruggedmaker2Jack YoungRichard Howard55Ethan Mitchell4Nathan Cox25Nicole Lee6Raymond Martinez10Drew Rogers6stormygardener44Ashley Ramirez4amberbadger17silverviper44Ryan Wilson2ruggednomad5Brenda Chase3Christian Cruz41Patrick Peterson49Chris Hayes16Nicholas Sanchez85Zachary White17Kimberly Harris6gentlepilot45rowdyscout8 …
ruggedmaker2 ruggedmaker2 Regular
469 messages
joined Mar 2018
#901 ·
Kate Perez10 said:So, assuming the LLC is set up for sales tax... does that mean we calculate everything here in the US and just list it right there on the tax return form?

Look, since it's taxable, you just treat it like any other taxable sale. Throw it in the same bucket; just list it under taxable sales at the 25% rate.

The IRS website actually has a breakdown of the tax forms where they explain every single line item. Seriously, just download that thing and keep it on your desktop for whenever you get stuck.
Kate Perez10 Kate Perez10 Member
10 messages
joined May 2015
#902 ·
ruggedmaker2 said:Look, since it's taxable, you just treat it like any other taxable sale. Throw it in the same bucket; just list it under taxable sales at the 25% rate.

The IRS website actually has a breakdown of the tax forms where they explain every single line item. Seriously, just download that thing and keep it on your desktop for whenever you get stuck.

Thanks. ☕
James Parker6 James Parker6 Newcomer
4 messages
joined Mar 2014
#903 ·
The company bought goods from Italy back in October 2013 and settled the invoice then, but the shipment is only just hitting our shores now. Should we have filed the VAT S form last year, or is it due now?
Carol Price4 Carol Price4 Regular
380 messages
joined Nov 2019
#904 ·
James Parker6 said:The company bought goods from Italy back in October 2013 and settled the invoice then, but the shipment is only just hitting our shores now. Should we have filed the VAT S form last year, or is it due now?

Doesn't matter if it was paid last year—the invoice goes with the goods upon delivery, so you file the VAT-S now.
Douglas Nguyen30 Douglas Nguyen30 Member
31 messages
joined Dec 2013
#905 ·
I could use some help here...
Regarding an asset acquisition: the delivery note is dated September 24, 2014, which is when the goods actually arrived in the US, but the invoice isn't dated until September 30, 2014.
The delivery note shows the quantity, but doesn't list a specific value.
For the sales tax filing, should I be using the exchange rate from September 24th or the one from the invoice date on September 30th?🙂
Thanks, everyone!
ruggedmaker2 ruggedmaker2 Regular
469 messages
joined Mar 2018
#906 ·
Check the invoice date.
Douglas Nguyen30 Douglas Nguyen30 Member
31 messages
joined Dec 2013
#907 ·
ruggedmaker2 said:Check the invoice date.

Thanks... so sales tax and receipts are based on the invoice date?!
Ethan Bailey18 Ethan Bailey18 Active Member
80 messages
joined Oct 2015
#908 ·
ruggedmaker2 said:Check the invoice date.

The invoice date is the gold standard for determining the exchange rate when importing from the USA. I run into this exact issue when importing from Mexico; the rates never match up, which messes with my VAT base calculations at customs. Even if they differed anyway because they include shipping costs in the base—which is standard practice—I need to know: do I record their specific rate in my books, or stick to the rate from the invoice date?
And here's a second scenario... I paid for goods upfront back in September via a deposit from a supplier in Canada. The shipment is still sitting here, and loading isn't scheduled until October 1st. Am I allowed to process the paperwork using September dates? They promised they'd sign off on everything.
Douglas Nguyen30 Douglas Nguyen30 Member
31 messages
joined Dec 2013
#909 ·
Douglas Nguyen30 said:Thanks... so sales tax and receipts are based on the invoice date?!

ruggedmaker2, what happens if the delivery note is dated September 30th, but the invoice is dated October 1st?
The goods arrived on September 30th.
😵
ruggedmaker2 ruggedmaker2 Regular
469 messages
joined Mar 2018
#910 ·
The invoice is what you log in the IRS books, so you just use whatever the exchange rate was on the actual date of the invoice.
Gary King5 Gary King5 Newcomer
5 messages
joined Oct 2013
#911 ·
Need some help here...
I'm a small business owner in California, not on the VAT register. I need to invoice a Canadian company that's registered with the IRS for some translation services. How do I handle the invoicing? What needs to be on there if the work happens here in the States versus if it's done over in Canada?
Does an American business owner need to apply for a specific tax ID for this?
Mark Vaughn2 Mark Vaughn2 Newcomer
2 messages
joined Aug 2014
#912 ·
I'm looking for some help here too...

So, I've got this small business owner importing goods from Turkey. Do we have to shell out VAT on these imports?
Ethan Bailey18 Ethan Bailey18 Active Member
80 messages
joined Oct 2015
#913 ·
Mark Vaughn2 said:I'm looking for some help here too...

So, I've got this small business owner importing goods from Turkey. Do we have to shell out VAT on these imports?

Customs still handles sales tax for imports from outside the USA. You can pay via the JCD directly or through your customs broker.
ruggedmaker2 ruggedmaker2 Regular
469 messages
joined Mar 2018
#914 ·
Gary King5 said:Need some help here...
I'm a small business owner in California, not on the VAT register. I need to invoice a Canadian company that's registered with the IRS for some translation services. How do I handle the invoicing? What needs to be on there if the work happens here in the States versus if it's done over in Canada?
Does an American business owner need to apply for a specific tax ID for this?

http://www.irs.gov/pub/irs-wd/....aspx?id=19109
placidnomad17 placidnomad17 Newcomer
1 message
joined Oct 2014
#915 ·
Hey there! So, I’ve got a bit of a brain teaser for you guys. I run an LLC, and I’m looking at picking up some bulk inventory over in Canada to bring back here to the States. Now that we're all part of the USA, I know the whole customs headache is pretty much gone, but what's the deal with sales tax? Am I stuck paying it upfront when I buy this stuff in bulk from my Canadian suppliers, or how does that work? I think I heard something about some kind of European VAT ID number being used to bypass that... anyone actually know the drill?
ruggedmaker2 ruggedmaker2 Regular
469 messages
joined Mar 2018
#916 ·
Did you catch this headline?
http://www.nytimes.com/us/politics/tax-reform-updates-fed-policy-news

And get a load of this part:
"I met with all 28 ambassadors and gave them the full rundown. We’ll have the funds returned ASAP, and within the month, we're going to overhaul the law to streamline the whole system..."

Great. Another round of shifting tax codes and endless bureaucracy. Just what we needed. Huzzah! 😵🙂🙂
Seriously, when does this nonsense ever end?
Carol Price4 Carol Price4 Regular
380 messages
joined Nov 2019
#917 ·
placidnomad17 said:Hey there! So, I’ve got a bit of a brain teaser for you guys. I run an LLC, and I’m looking at picking up some bulk inventory over in Canada to bring back here to the States. Now that we're all part of the USA, I know the whole customs headache is pretty much gone, but what's the deal with sales tax? Am I stuck paying it upfront when I buy this stuff in bulk from my Canadian suppliers, or how does that work? I think I heard something about some kind of European VAT ID number being used to bypass that... anyone actually know the drill?

If you're registered for sales tax, just hit up the IRS for your tax ID—once you're cleared in the system, you give that number to the folks in Canada and they'll invoice you without any tax added.

You don't actually pay the tax upfront; you just track it and file your reports to the IRS MONTHLY (honestly, once you start trading internationally, you'll be filing monthly no matter what).
Jessica Anderson59 Jessica Anderson59 Member
12 messages
joined Dec 2013
#918 ·
A small business owner operating under the flat-tax system is providing services to a taxpayer located in Canada.
How should I go about issuing an invoice, and which specific tax code should I cite? Is there a requirement for me to register for sales tax purposes? Furthermore, will I be obligated to file a monthly sales tax return in this particular scenario?😵
Andrew Fowler5 Andrew Fowler5 Newcomer
1 message
joined Oct 2014
#919 ·
Jessica Anderson59 said:A small business owner operating under the flat-tax system is providing services to a taxpayer located in Canada.
How should I go about issuing an invoice, and which specific tax code should I cite? Is there a requirement for me to register for sales tax purposes? Furthermore, will I be obligated to file a monthly sales tax return in this particular scenario?😵

I'm actually looking for some similar advice here—I run my own small business under a flat-rate tax scheme, but I'm planning to export my services to clients both within the USA and internationally. Do I actually need to include my tax ID or VAT number on my invoices, or can I skip that part? Thanks! 🙂
Ethan Bailey18 Ethan Bailey18 Active Member
80 messages
joined Oct 2015
#920 ·
I could use some help here,
I have a question... when I donate my own product, do I calculate sales tax based on the initial price and then write it off from my finished goods inventory?
The cost to me is the price including sales tax.
Do I also need to account for sales tax on products removed from inventory via a commission report and booked as a warranty claim expense??? (non-deductible)
In my view, I shouldn't have to pay sales tax on something that isn't even tax-deductible... right??
Or am I wrong??
ruggedmaker2??😵

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