Doing business with USA member states

silentscout9 said:Hey, can anyone help me out here? My company is buying goods from Germany and we're using a carrier to ship everything directly to a customer in Canada.
I’m issuing the invoice to the Canadians with the VAT exemption under Section 41 and all that stuff.
But I’m stuck on how to record the invoice for the German supplier, since the goods never actually enter the US.
I guess I don't know if I need to include this in my VAT filings or if I have to deal with Intrastat reporting?

Carol Price4 said:If everyone involved is listed in the IRS database, then you're looking at a three-way transaction...

Patrick Peterson49 said:Can someone just double-check if I’ve actually got this three-way deal straight?
A - Poland, B - Canada, and C - USA

Company A delivers the goods to C, but sends the invoice to B
Then B invoices C for those goods

Since I'm at the end of the chain, I'd be putting this in my sales tax return under Section II.13—received goods and services from non-resident taxpayers at the 25% rate—Section III.13 for input tax from non-residents at 25%, and Section VIII.6 for goods received from the USA as part of a three-way transaction

I'm assuming I don't list this on the standard sales tax form... but since the inventory is physically hitting the US, I guess it counts as an interstate move... right?

Thanks!

Patrick Peterson49;55417799 said:Can someone just confirm if I’ve actually got this three-way deal right?
A - Poland, B - Canada, and C - USA

Company A delivers the goods to C but sends the invoice to B.
Then B invoices for the goods sent to C.

Since I'm at the end of the chain, I record this on my VAT return under section II.13—received goods and services from non-resident taxpayers at 25%—section III.13 for input tax on those non-resident supplies at 25%, and section VIII.6 for goods received from the USA within a three-way transaction.

I don't list this on the VAT-S form. I assume it counts as an intrastate movement because the goods are physically entering the US.

If all the taxpayers are registered in their own countries, then VAT is applied to the incoming invoice from B. This gets reported on the VAT return under section II.7 for intra-USA goods acquisitions at 25%, section III.7 for input tax on those acquisitions at 25%, and section VIII.6 for goods received from the USA via a three-way deal.

That same deal needs to be on the VAT-S form too—because, well, the VAT-S has to reflect everything in section III.7. It also goes into the Intrastat report.
That's how I've been handling it since day one of joining the union.

Patrick Peterson49 said:Yeah, that’s exactly how I read it in the IRS filings back in 2013. They actually told me today that’s the way to go—even though the Police Department put out an opinion on 02.11.2015 saying otherwise.
http://www.irs.gov/US_publ....aspx?id=19210
When I showed them that Police Department opinion, they were just like, "Oh, yeah... that's new, do it that way."🙏

But it says things should be done differently here🙏—basically the way I laid it out above...

Richard Howard55 said:I’d probably run this by another consulting firm. Maybe there was something specific at play here—some kind of "hidden" detail that triggered that response from the IRS.
He's got me totally stumped. 🤔

ruggedmaker2 said:We’ve figured out all the nonsense suppliers write on invoices when they shift the tax burden onto us, but what on earth do they put in those clauses for the margin scheme?
Does anyone actually have an example handy? I just need you to copy-paste roughly how the clause is worded.
It’ll probably be in English, German, Italian, or French—I’m just rattling off European languages now, haha 😁—some kind of weird legal phrasing.

Thanks in advance.