Doing business with USA member states

So, I’ve got a business partner over in Germany. This year, compared to last year, they’re still using the exact same company name and headquarters address, but they’ve somehow ended up with a brand-new VAT ID number. When I run that number through VIES, it shows up as valid, but here’s the kicker: VIES won't link it to their specific name or address. I decided to go a step further and sent in a formal inquiry to verify everything, and the response I got was... well, a mess. They confirmed the VAT ID is valid and the company name is correct, but then they claimed the address is wrong. Yet, when I look at my partner's official letterhead and even their own website, they list the very same address I used in my inquiry! So, according to the official verification, the info on their own site is "incorrect." What is the right move here? Should I just issue the invoice using the details I have on hand and simply ignore this weird discrepancy in the verification results?

Look, that database is basically just there so you can double-check if they’re actually registered for sales tax or not. The specific address doesn't really matter. On the actual invoice, you just use whatever address the client gives you—as long as the bill lands in the right hands, you're golden.

I see this all the time when dealing with big corporations or companies that are part of some massive conglomerate. Those giants are constantly shuffling things around—merging, splitting off, reorganizing... it's a mess. They might have half a dozen different addresses depending on which department or sector you're talking to.
Don't sweat the address mismatch. Seriously. All you really need to care about is that tax ID number. That’s what the IRS uses to cross-reference the filings and acquisition reports. As long as that ID is legit, the tax authorities couldn't care less about whether the street name matches perfectly.

ruggedmaker2 said:Look, that database is basically just there so you can double-check if they’re actually registered for sales tax or not. The specific address doesn't really matter. On the actual invoice, you just use whatever address the client gives you—as long as the bill lands in the right hands, you're golden.

I see this all the time when dealing with big corporations or companies that are part of some massive conglomerate. Those giants are constantly shuffling things around—merging, splitting off, reorganizing... it's a mess. They might have half a dozen different addresses depending on which department or sector you're talking to.
Don't sweat the address mismatch. Seriously. All you really need to care about is that tax ID number. That’s what the IRS uses to cross-reference the filings and acquisition reports. As long as that ID is legit, the tax authorities couldn't care less about whether the street name matches perfectly.

👏 THANKS!

Hey everyone,
I’m trying to wrap my head around this specific tax clause I keep seeing: "Non imp.Art 41DL 331/93 Chase. EU"
Basically, I'm looking at buying a used car with the intention of flipping it for a profit later on. Does anyone actually know what this legal jargon is getting at?
Thanks!

Sam Evans said:Hey everyone,
I’m trying to wrap my head around this specific tax clause I keep seeing: "Non imp.Art 41DL 331/93 Chase. EU"
Basically, I'm looking at buying a used car with the intention of flipping it for a profit later on. Does anyone actually know what this legal jargon is getting at?
Thanks!

That’s just their way of saying they're transferring the tax liability.

It’s always a headache getting Italians to correctly label a reverse charge. Honestly, we might as well just study their legal code ourselves if we want to get anything done. 👏

Henry Edwards33 said:That’s just their way of saying they're transferring the tax liability.

It’s always a headache getting Italians to correctly label a reverse charge. Honestly, we might as well just study their legal code ourselves if we want to get anything done. 👏

I reached out to the supplier yesterday, and honestly, the guy had absolutely no clue what any of this meant. I ended up having to translate the whole mess myself, only to realize it was a reverse charge situation... the idiot actually tried to bill me for the tax without even mentioning it upfront. Thanks for the help!

Since this is our first time importing goods from another EU member state (in this case, from a supplier in Austria), I need a quick sanity check to ensure my understanding is correct. We are purchasing solar panels from a company that is VAT-registered and holds a valid VAT ID. There are no customs duties involved. We calculate the base amount using the mid-market exchange rate from the Federal Reserve on the invoice date, then we claim the input VAT and record the liability accordingly on our six-month VAT return and the standard VAT filing. Have I missed any critical steps in this process?

If you've already got your EIN and everything set up with the IRS, then you're basically golden. 👍

So, I’m running into this for the first time and could really use some help here.
We just had a shipment arrive—it was imported from China—sent over to Romania. They have a valid VAT ID.

1. On the VAT return, am I supposed to be reporting both the input and output tax?
2. What about that ZV form? Do I actually need to fill that out or...?
3. Is there anything else I should be booking or filing?

Thanks

ruggedmaker2 said:If you've already got your EIN and everything set up with the IRS, then you're basically golden. 👍

We have one, thanks.

I am reaching out because I could really use some guidance if anyone here has dealt with a setup like this before:
Company A (based in Malta and registered with the IRS) sells goods to Company B (a US-based firm, also IRS-registered), who then flips them to Company C (located in Italy and IRS-registered).
The US company instructs Company A to ship the goods directly to Company C. However, there is a catch: the shipment isn't actually leaving Company A's home base, but is instead coming from a third location—Austria—where it appears Company A maintains some sort of warehouse facility.
How does the accounting work for this, and specifically, what documentation is the US company required to file? Furthermore, does this qualify as a tripartite transaction, considering the actual movement of goods originates from a country that isn't even part of the direct A-B-C chain? Honestly, this is all entirely new territory for me; I have yet to handle a three-way deal like this in my professional practice.

Check this out, maybe it’ll actually be useful for once:
three-way gig

Hey everyone.
I need some advice.
I’m invoicing for tool repairs on equipment owned by a firm based in Canada.
They leased it to us because we manufacture products for them.
The agreement is that they cover all maintenance costs.
The tools are being repaired here in California and stay here in California, but the invoice goes to the Canadian company.
Do I need to charge sales tax on this?
Since we’re the ones performing the service... right? Or am I missing something?
Also, how does this look on my accounting ledger—do I list the gross amount including tax, and does it even belong in the ledger at all?
Help.

A small business owner hasn't hit the revenue threshold yet, but they're importing goods from Germany to resell—essentially running a retail operation. Is there any kind of sales tax obligation they need to worry about before they actually cross that official threshold?

placidlynx92 said:A small business owner hasn't hit the revenue threshold yet, but they're importing goods from Germany to resell—essentially running a retail operation. Is there any kind of sales tax obligation they need to worry about before they actually cross that official threshold?

Just record it as a standard expense—there's no sales tax issue here since they already paid the German tax.

Ethan Bailey18 said:Hey everyone.
I need some advice.
I’m invoicing for tool repairs on equipment owned by a firm based in Canada.
They leased it to us because we manufacture products for them.
The agreement is that they cover all maintenance costs.
The tools are being repaired here in California and stay here in California, but the invoice goes to the Canadian company.
Do I need to charge sales tax on this?
Since we’re the ones performing the service... right? Or am I missing something?
Also, how does this look on my accounting ledger—do I list the gross amount including tax, and does it even belong in the ledger at all?
Help.

If anyone needs a refresher... just look at the fundamental principles of Section 17 regarding chargeback rules.😛

Hey there! I’m looking for a bit of guidance on a specific situation. A small LLC of ours is selling an official company van to a firm over in Germany—the same one they actually bought it from just a year ago. When we originally picked it up, we didn't charge VAT on the invoice; we just handled the import duties and settled the VAT through our own accounting. So, how should we structure this sales invoice? Should we just list the net amount without any VAT in USD and call it a day, or is it better to include a note specifying the amount in Euros? For context, when they sold it to us, they issued an identical invoice showing just the net amount in Euros. Any insights would be greatly appreciated!

Look, they sent you an invoice based on their own tax laws, but now you’re stuck issuing one that follows our domestic rules.
And here's the kicker: our laws say everything has to be billed in USD. You can toss the Euro conversion in there next to it or underneath—whatever your accounting software lets you do.
Plus, don't forget all the usual fine print, like the reverse charge note if that applies, the tax ID, and all that other regulatory junk.

ruggedmaker2 said:Look, they sent you an invoice based on their own tax laws, but now you’re stuck issuing one that follows our domestic rules.
And here's the kicker: our laws say everything has to be billed in USD. You can toss the Euro conversion in there next to it or underneath—whatever your accounting software lets you do.
Plus, don't forget all the usual fine print, like the reverse charge note if that applies, the tax ID, and all that other regulatory junk.

Thanks so much, ruggedmaker2! On the actual invoice, should I just list the net amount without showing the sales tax separately?

Look, if this is a standard B2B deal, you just skip the sales tax entirely. You just add a little note mentioning the reverse charge mechanism.
I can't recall the exact section or subsection of the tax code off the top of my head right now, but that's how it works.