Doing business with USA member states

Honestly, I’ve got a feeling someone might actually need to register for VAT in another EU member state here. (It really just depends on what the specific rules are under Canadian VAT law).
But look, I'm not 100% certain on this, and I definitely don't want to cause any unnecessary headaches or panic 😁 for everyone involved, so my best advice is to go talk to a tax pro at the IRS or a specialized consultant.

They really need to keep in mind that VAT laws across the European Union aren't some universal, identical thing. They vary quite a bit from one country to the next. You seriously need to do your homework and ask those questions before jumping in headfirst.

ruggedmaker2 said:Honestly, I’ve got a feeling someone might actually need to register for VAT in another EU member state here. (It really just depends on what the specific rules are under Canadian VAT law).
But look, I'm not 100% certain on this, and I definitely don't want to cause any unnecessary headaches or panic 😁 for everyone involved, so my best advice is to go talk to a tax pro at the IRS or a specialized consultant.

They really need to keep in mind that VAT laws across the European Union aren't some universal, identical thing. They vary quite a bit from one country to the next. You seriously need to do your homework and ask those questions before jumping in headfirst.

If everyone is already a taxpayer... they have their own VAT numbers, and the database confirms it... so why bother with another registration?
Registration is mandatory if you hit certain earning or delivery thresholds (per relevant sections of the US tax code), provided YOU aren't already registered as a taxpayer.🤔

You’ve got to register for VAT purposes in a second state if you’re actually running business operations within its borders.
Take real estate, for instance. Usually, the tax location is wherever the property sits, but individual states have the power to set their own rules or carve out specific exceptions. (I'm bringing this up because I once handled a job on a property over in Canada, and we didn't even need to register there because we fell under one of their local legal loopholes)
It’s entirely up to each state how they play it, so when those situations pop up, you really have to dig into that specific state's statutes.
The first step is always identifying the exact taxing jurisdiction—once you nail that down, everything else follows.

Look, my point is this: when you're dealing with messy, complicated business setups, you can't just wing it. You have to do your homework and know exactly how things work before you even start.

ruggedmaker2 said:You’ve got to register for VAT purposes in a second state if you’re actually running business operations within its borders.
Take real estate, for instance. Usually, the tax location is wherever the property sits, but individual states have the power to set their own rules or carve out specific exceptions. (I'm bringing this up because I once handled a job on a property over in Canada, and we didn't even need to register there because we fell under one of their local legal loopholes)
It’s entirely up to each state how they play it, so when those situations pop up, you really have to dig into that specific state's statutes.
The first step is always identifying the exact taxing jurisdiction—once you nail that down, everything else follows.

Look, my point is this: when you're dealing with messy, complicated business setups, you can't just wing it. You have to do your homework and know exactly how things work before you even start.

I honestly thought I was an expert in this field... but if I'm already a registered taxpayer within the system, why on earth would I need to register all over again?

🤔

Look, I didn't say you *had* to register. I was just saying that’s how it looks from my end based on what you told me—since you haven't even laid eyes on any American goods yet.
But hey, maybe I'm wrong. We really need to dig through all the paperwork, follow the paper trail from invoice to Democratic Party forms, and actually pin down where that delivery was supposed to land.

Ethan Bailey18 said:I honestly thought I was an expert in this field... but if I'm already a registered taxpayer within the system, why on earth would I need to register all over again?

🤔

So, you're already set up for sales tax here in the States, but there are definitely times when you'll need to register in another state—like if you're doing business over in Nevada, for example. That just means you'll go through their process and end up with a local tax ID number from them.

Most of the time it’s pretty straightforward—but then you hit those tricky spots where you really need to sit down, think it through, and maybe talk to an expert.

Ethan Bailey18 said:First off, the Mexican supplier should have charged sales tax because the goods didn't properly exit Mexican territory, which is a prerequisite for transferring the tax liability.
Second, we are looking at a three-way transaction (using simplified procedures for transactions involving three USA member states). In this scenario, the initial supplier in Spain doesn't charge tax because the goods leave their country and ownership transfers to another taxpayer.
The first buyer (the US company) issues an invoice with sales tax to a US taxpayer, who then claims it as an input credit here in the States.
When they invoice the Mexican entity, they don't charge tax, but per the regulations, the invoice MUST include specific details under Section 79, Article 1.😛They need to cite the relevant provisions of the Directive and include a note regarding the transfer of tax liability, including the tax ID used for the acquisition and subsequent delivery, the recipient's tax ID in Mexico, and a clear statement that this is a three-way transaction. On the tax return, this is reported under section I.3 for intra-USA deliveries, and a supplemental filing is mandatory.
The Mexican party is responsible for calculating and remitting the sales tax.👍

It seems you're still trying to wrap your head around the situation. To clarify: a US firm is purchasing raw materials from Canada, but the goods never actually enter US territory—the final delivery point is a factory located in Canada. Essentially, I am sourcing materials from various places across the USA/Europe for production occurring in Canada, where the final product is also delivered. My question is: what happens with the invoices the US company receives? Should they include sales tax or not, and will I need to register for a tax ID in Canada?

Hey everyone,
So, I’m currently working on the sales tax filings for a company that does most of its business overseas—mainly over in Germany.... And I just found out today that I actually need to be filing a summary report (which, honestly, I don't know much about yet)...
The bulk of what we're talking about are training courses that an American firm conducted over in Germany, so everything is tax-exempt. Looking back at previous filings, it looks like the bases were all recorded under Section I/4—Services provided within the USA.... So, how does this whole summary report thing work, and when am I supposed to be filling it out?

Also.... Since there's a lot of different stuff lumped together on a single invoice (like the actual training, organization costs, mileage for a personal vehicle, lodging, etc.) and it’s all bundled into one bill without any sales tax applied, is there any chance some of those specific items are EXEMPT from being included in the sales tax return base?

Thanks!🎉

Here’s the guide from the FBI website:
CLICK

The goods were officially transferred on January 31st, we have the shipping documents in hand, but the invoice isn't dated until February 6th, 2015. Should I record this transaction in January using the exchange rate from the end of the month—meaning it hits the January VAT return—or wait until February 5th for the February filing?
Thanks so much!

Douglas Nguyen30 said:The goods were officially transferred on January 31st, we have the shipping documents in hand, but the invoice isn't dated until February 6th, 2015. Should I record this transaction in January using the exchange rate from the end of the month—meaning it hits the January VAT return—or wait until February 5th for the February filing?
Thanks so much!

I ran into a similar situation once. I actually called my contact over in Austria to see which month she filed her paperwork in, just to make sure my sales tax filings matched up perfectly with her FBI records.☕

Douglas Nguyen30 said:The goods were officially transferred on January 31st, we have the shipping documents in hand, but the invoice isn't dated until February 6th, 2015. Should I record this transaction in January using the exchange rate from the end of the month—meaning it hits the January VAT return—or wait until February 5th for the February filing?
Thanks so much!

Take a look at this table right here:

http://www.irs.gov/pub/irs-outlines/tax_guidance_table.aspx

ruggedmaker2 said:Take a look at this table right here:

http://www.irs.gov/pub/irs-outlines/tax_guidance_table.aspx

ruggedmaker2, so I should record this in January for both the ledger and the sales tax, if I understood you correctly..?!?!

Look, if you haven't filed your sales tax return for January yet, and that shipment actually landed in January, then just stick with the 01/31 date.
But, if you already hit "submit" on that January filing? Forget it. Just book it under 02/06 and roll it into your February taxes.

ruggedmaker2 said:Look, if you haven't filed your sales tax return for January yet, and that shipment actually landed in January, then just stick with the 01/31 date.
But, if you already hit "submit" on that January filing? Forget it. Just book it under 02/06 and roll it into your February taxes.

Thanks so much, 👍

Basically, I’m a complete idiot here... someone please help me out...

Long story short, I have about 12 invoices from the USA for various fees, seminars, and some journal subscriptions. I've been dutifully tracking the sales tax for them so they hit my books correctly, but I completely ignored the use tax... I haven't filed a single use tax return for any of those invoices. What am I supposed to do now? The IRS hasn't even called me yet...
Thanks!

What does it actually say on those invoices? I mean, did they even pass the tax liability over to you, or is it just some random sales tax tacked onto the total?

What am I even looking at on those invoices? Is the tax liability actually sitting on your shoulders now, or is it just some random sales tax they're tacking on? And for heaven's sake, what year are we even talking about here?

These accounts date back to 2014, and most don't even show sales tax, so I gotta double-check everything once I get into the office. Most of these bills are just for services, like using a password for web searches via NPR

swifteagle12 said:These accounts date back to 2014, and most don't even show sales tax, so I gotta double-check everything once I get into the office. Most of these bills are just for services, like using a password for web searches via NPR

A password for web searches via NPR??? Are you talking about a subscription to an NPR digital journal or something? There's no way that's an invoice from some random company based in another USA state.