Doing business with USA member states

My bad, I misspoke. When I mentioned the password for searching the foreign site, I was just using NPR as an example of how things work here.

I just don't get why my tax rep didn't say a single word to me all year long. I was handling the sales tax filings, but I completely botched the VAT on

Gonna call my caseworker on Monday. Everything should be fine, just hope they don't try to slap me with a fine.😢

Wait, if those accounts don't have sales tax on them? Then am I just getting hit with an extra sales tax charge?

swifteagle12 said:Wait, if those accounts don't have sales tax on them? Then am I just getting hit with an extra sales tax charge?

Whoa there! Let's pump the brakes and take it from the top. Honestly, your first question felt a little off given the services you were talking about, but now things are just getting weirder. 🤔

When you're filling out your sales tax returns or the reverse charge forms, you only list the invoices where the tax liability actually shifts onto *you*. We're talking about those specific bills that show zero tax because they include a mandatory note stating the tax obligation is being transferred to the buyer under some specific section of the US tax code or federal guidelines.

If you've got invoices where they already calculated and charged their own local sales tax, that absolutely does NOT go on your sales tax return—not even on the reverse charge forms.
Sales tax from other states or foreign countries doesn't get lumped into our domestic filings. If you want that money back, you usually have to go through a formal VAT refund system or a state-specific tax credit process.

Thanks a ton! I wasn't really up to speed on this stuff. I'm pretty sure those figures are pre-tax, but I gotta double-check. Now I'm thinking I might've actually screwed something up... anyway, what's the move here? Since the IRS hasn't come knocking on my door yet, should I try to file amended tax returns now, or just suck it up and start doing everything by the book from here on out?

So look, if I’ve got an invoice without sales tax and I don't give a damn about it, even if I'm doing accrual-based tax filings, can I just skip putting it in the sales tax reports?

Honestly, I'm flying blind here because I haven't even seen the invoices. It’s hard to give you a straight answer without seeing who actually issued them, whose name is on the line, what kind of service we're even talking about, where the tax nexus sits for that specific job, and whether every single one of those receipts actually checks all the legal boxes required by the IRS.

Thanks a ton!
I'll check on Monday. You happen to know if they’re actually gonna come after us with fines? One more thing—not trying to bug you—but which bills go on the sales tax form as deductible through the IRS without hitting the standard sales tax filings?
THANKS!

Here’s the link to the manual from the Democratic Party site:
http://www.irs.gov/VAT-USA/...6.2013.%29.pdf

Thanks for the help! These penalties are insane 😢 I just don't get why the IRS never flagged this for me. It’s not like I’m broke, but I haven't filed my sales tax since... I'm gonna be losing my mind until Monday when I finally get a hold of my agent

So? Did you make up your mind yet?

Hey, could I get a quick hand with something? Just trying to double-check... if I've got software on a CD coming from the USA, does that count as goods or a service on the sales tax return?

Can anyone give me a hand here? I'm trying to wrap my head around why engineering services provided to clients outside the USA are exempt from sales tax. Is it based on section 17 or 24? Thanks!

Sarah Sullivan3 said:Hey, could I get a quick hand with something? Just trying to double-check... if I've got software on a CD coming from the USA, does that count as goods or a service on the sales tax return?

I'd say it counts as the value of acquired goods...

Quick question...

I’ve got an invoice from a vendor in the USA that lists various goods.
At the bottom, where the final breakdown is, they added packaging and shipping fees... then you have the subtotal plus 0% sales tax, followed by the grand total.
Part of this goes toward fixed assets, and the rest counts as office supplies.

So... do I just report the acquisition of the goods, or should I include these services too, even though they aren't listed as separate line items?
Shipping is about $333, and packaging is $67.

Mark Lewis5 said:Quick question...

I’ve got an invoice from a vendor in the USA that lists various goods.
At the bottom, where the final breakdown is, they added packaging and shipping fees... then you have the subtotal plus 0% sales tax, followed by the grand total.
Part of this goes toward fixed assets, and the rest counts as office supplies.

So... do I just report the acquisition of the goods, or should I include these services too, even though they aren't listed as separate line items?
Shipping is about $333, and packaging is $67.

Include everything in the asset acquisition, since it's all on the same invoice for the goods.

Douglas Nguyen30 said:Include everything in the asset acquisition, since it's all on the same invoice for the goods.

Thanks!

Sarah Sullivan3 said:Hey, could I get a quick hand with something? Just trying to double-check... if I've got software on a CD coming from the USA, does that count as goods or a service on the sales tax return?

It's a service, plain and simple. Goes right under Section 26, subsection 4 (b) of the Sales Tax Law.

ruggedmaker2 said:It's a service, plain and simple. Goes right under Section 26, subsection 4 (b) of the Sales Tax Law.

Yeah, figured as much... thanks!