Doing business with USA member states

👍
Exactly.
Every single country in the European Union plays by its own rules when it comes to sales tax, so they always add those little disclaimers to stay compliant.
Honestly, as long as they show up in the VAT Information Exchange System, you’re good to go.

I’ve got some interest payments on a loan from somewhere in the European Union—do I need to include those in my VAT return like I do with services, or just leave them out?

Hello everyone,

I have a quick question regarding a potential loan from an overseas company (roughly $38,000)—this wouldn't be a transaction with a related party. The lender is willing to offer this at zero interest; would that pose any issues under American tax laws? From our side, an interest-free arrangement would also be preferred.

Thanks in advance,

Quick question here: I know when we’re shipping physical goods, besides the standard sales tax filings, we have to submit those ZP forms... but what happens when an invoice goes out for brokerage services provided to companies within the European Union? Is there anything else that needs to be filed with the IRS beyond the usual tax returns?

ruggedlynx63 said:Quick question here: I know when we’re shipping physical goods, besides the standard sales tax filings, we have to submit those ZP forms... but what happens when an invoice goes out for brokerage services provided to companies within the European Union? Is there anything else that needs to be filed with the IRS beyond the usual tax returns?

The summary report applies to both goods and services—I handle transport services myself and always file the ZP. Honestly, unless that brokerage service has some weird, specific tax loophole attached to it, I wouldn't know.

Drew Rogers6 said:The summary report applies to both goods and services—I handle transport services myself and always file the ZP. Honestly, unless that brokerage service has some weird, specific tax loophole attached to it, I wouldn't know.

Alright, thanks 👍

The ZP goes right along with the sales tax filing...

Hey everyone

Just wanted to drop this here—not trying to run an ad or anything, just figured I’d share some info on importing goods from outside the USA using customs procedure 42. If anyone's looking for details, I thought I'd pass it along...
www.customsbrokerage.com
You can find everything you need regarding how the process works at that link. You can also find plenty of service providers online who handle this kind of thing
Hopefully, this helps someone figure out how to defer that 25% sales tax on imports...

Anthony Jackson81 said:So I just got this invoice from a supplier over in Switzerland for a new machine we picked up. It says here it’s a three-party deal and that the recipient handles all the sales tax stuff. There isn't even a tax amount listed on the bill—it just shows a 0% tax rate.
The machine is being shipped straight from the USA. Can anyone help me figure out how the hell I'm supposed to book this in my accounting software, specifically regarding the sales tax? 🤦🕺

anyone? 🙏🙏🙏🕺

Greetings, everyone.
I am seeking some guidance if anyone here is familiar with this specific situation.
An American company—which currently operates outside of the VAT system—is planning to launch an e-commerce platform. In this model, the postal service will act as the intermediary for all deliveries. The target customers are private individuals located in Germany. I need to understand the full scope of requirements: Is it mandatory to obtain a VAT identification number? What specific information must be detailed on the invoices? Furthermore, what is the standard procedure regarding the IRS, and are there any particular reports that must be filed?
Any assistance would be greatly appreciated..

Anthony Jackson81 said:anyone? 🙏🙏🙏🕺

Look, this isn't some three-way VAT dance because neither Switzerland nor the USA are part of the European Union. We're talking full-on Customs procedures here.
If my memory serves me right—and it usually does—this would just be a standard import.
Correct me if I'm totally off base, please.

ruggedmaker2 said:Look, this isn't some three-way VAT dance because neither Switzerland nor the USA are part of the European Union. We're talking full-on Customs procedures here.
If my memory serves me right—and it usually does—this would just be a standard import.
Correct me if I'm totally off base, please.

Yeah, I'm with you there. That's why it totally tripped me up when my screen flagged it as a three-way transaction where the recipient is liable for VAT. Makes zero sense.

Look, you definitely should've gotten more paperwork than just a receipt. What were you thinking?
Did they send anything from the freight forwarder, or maybe some docs from Customs... anything at all?

Anthony Jackson81 said:Yeah, I'm with you there. That's why it totally tripped me up when my screen flagged it as a three-way transaction where the recipient is liable for VAT. Makes zero sense.

This is definitely not a three-way deal. For that to work, every single country involved would have to be part of the European Union. In reality, you should have received an invoice from your freight forwarder that includes the import sales tax alongside their service fees, or at least a notification from Customs regarding the amount of import tax due.
Regardless of whether it's been paid yet, you list it on your tax return using the date from the customs entry, but keep in mind you generally have 10 days to settle the bill.

Betty Morris11 said:Greetings, everyone.
I am seeking some guidance if anyone here is familiar with this specific situation.
An American company—which currently operates outside of the VAT system—is planning to launch an e-commerce platform. In this model, the postal service will act as the intermediary for all deliveries. The target customers are private individuals located in Germany. I need to understand the full scope of requirements: Is it mandatory to obtain a VAT identification number? What specific information must be detailed on the invoices? Furthermore, what is the standard procedure regarding the IRS, and are there any particular reports that must be filed?
Any assistance would be greatly appreciated..

My consultants laid it out for me like this:

If the company isn't registered for sales tax and they are handling the shipping, you just issue an invoice the same way you would domestically, including a clause stating that sales tax hasn't been charged based on the relevant tax code sections, and that's pretty much it. Basically, you don't need to apply for a sales tax ID; you just issue a standard invoice. The main thing is to stay mindful of the sales tax threshold in the country where you're shipping the goods. Every country has its own limit, and once you cross that threshold, you'd have to follow their specific registration procedures. As long as you stay under that limit, you just invoice normally and don't have to send anything to the IRS.

Exactly—you'll definitely need a Sales Tax ID if you're planning on selling to other businesses.

🤦A supplier over in the European Union just flagged an error dating all the way back to 2013. They reported an amount on their sales tax return that was 6 dollars less than what I recorded... back then, nobody even blinked at the discrepancy.
Now they’ve gone and sent me an invoice—dated 2016—to cover that 6-dollar gap from 2013, but I already accounted for the higher amount in my own filings years ago.
I’m sitting here wondering if I actually need to go back and amend my 2013 sales tax returns to lower them, just so I can report those 6 dollars in 2016... otherwise, our records won't match the federal verification systems.
Does anyone know what kind of margin the IRS actually allows for these kinds of tiny differences before it becomes an issue?

You aren't fixing anything from 2013. That correction belongs in 2016—that's what the new accounting laws say, plain and simple. They might even demand a written explanation from you if you try to mess with it.

Thanks, ruggedmaker2. The real headache is that I actually recorded those 6 dollars back in 2013 and filed it under my sales tax returns. They’re only just now getting around to fixing it. Back then, they sent over some kind of proforma invoice to correct the previous bill for those 6 dollars, but I completely missed the mark and just processed it as if it were a standard invoice...
If I try to reverse that 2013 entry and re-record everything in 2016, my balance will sit at exactly 0.00. There won't be anything for me to report on the sales tax filings, but once they process their side, a discrepancy is going to pop up out of nowhere. It’s just a complete mess...

Peter King9 said:Thanks, ruggedmaker2. The real headache is that I actually recorded those 6 dollars back in 2013 and filed it under my sales tax returns. They’re only just now getting around to fixing it. Back then, they sent over some kind of proforma invoice to correct the previous bill for those 6 dollars, but I completely missed the mark and just processed it as if it were a standard invoice...
If I try to reverse that 2013 entry and re-record everything in 2016, my balance will sit at exactly 0.00. There won't be anything for me to report on the sales tax filings, but once they process their side, a discrepancy is going to pop up out of nowhere. It’s just a complete mess...

Don't worry, it isn't a significant amount. If Customs calls you, you can just explain it.👍