Want a tax number? Take a number

A company tax number is what allows you to buy goods for your business and claim the sales tax back from the government. No tax number? Then you have to pay the sales tax of 20% like any end consumer, even if you are buying inventory to resell.

20%

Good news for Washingtonians! According to this website, at 8.9% you are taxed less than 90% of the other states :)

I applied for my sales tax number six and a half weeks ago on July 6th.
I still do not have a tax number.

I'm guessing that's why they allow people 6 months to start their businesses, because 90% of the time is just waiting for stuff to happen while you golf.

Remember how I mentioned in my last post that my business start is September 1?
Yea, that's approximately 8 days away and I still can't buy inventory or cardboard boxes to put it in.

When I handed in my tax number request forms to the IRS, I was told "Eine Erhebungsdienst wird sich bei Ihnen melden.". This means I will be contacted by the inquiry dept to ensure that I really am planning on starting a business, because they will not hand out those tax number to just anybody.

After they decide you mean business (see what I did there? ;)), it takes another 3-5 days for them to actually issue you the tax number.

After a month had gone by, I went back to the IRS and asked where my number was. I received the standard answer that the inquiry dept. will come by. When asked how long that takes, I was told they didn't know, but that they'd write an e-mail.

Now at 6 weeks, I had to take action. I can't afford to pay 20% too much for my inventory. After being shrugged off last time I asked for info in person at the IRS. I decided to embark on the Telephone Campaign of Terror.

After being transferred around several times to get to correct department, the fun ensues :)
Here's the short version:

ME: When does my tax number arrive?
Them: I don't see anything for you yet.

ME: It's been 6 weeks. How long does it normally take?
Them: It depends.
(I can totally play this game...)

ME: On what?
Them:  Well some people are on vacation...
(I can hear her getting agitated)

ME: Please check when I am scheduled.
Them: I think they are currently working on requests started in May/June.
(Notice all the non-committal answers you get?)

ME: Fine, but when am I scheduled?
Them: I don't know. The person is normally out of the office on inquiry visits.
ME: Well then can you transfer me to their supervisor or someone who can check the schedule?
(oops, now I can hear she's pissed, lol)

Them: I can give you their extension...
ME: If they are out of the office, I'm guessing the phone extension probably won't help me. Please give me their name and e-mail address.

My phone call must have made the rounds inside the dept., because when I called the guy's extension, he already knew who was calling, haha!

Since squeaky wheels apparently get all the grease, I got an appointment for the next day. He said he would forward my documents and that I should expect my tax number by mail the middle of next week.

I'm praying that this really turns out to be the case, but the guy at least offered to call me and let me know the tax number over the phone if he sees it first.

After relating my phone story to some friends, one of them said:

"It's all just a test, if you don't have enough persistence to get information out of people who don't want to give it to you, then you're probably not going to be a successful business owner."

Wise words indeed!

 

And here's a dilbert

 

 

So what's been going on? or (Was bisher geschah)

So what's been going on in the meantime you ask? Or as my husband's work colleagues wondered - how come you have so much time to go for lunch and play golf all day? :-D

Collecting information on the steps you have to do a certain task is kind of like asking Professor Dolores Umbridge how many lines you have to write. There's just not a definitive answer. You're done when you're done.

Or perhaps an even more apt analogy is Hansel and Gretl. You find a breadcrumb which leads you onto the next one...


My random task since my last post was "What do I need to do to register my business?"

• Breadcrumb answer 1: It only takes 5 minutes (their words!) We can help you with that. Bring documents a, b, and c.

Cool! That easy? I even have all those documents ready at home...

• Breadcrumb 2: Well, before we can register your business, you will need to register your company name it in the official Register of Companies. Fill out form x and bring back. (Side Note: This is a purely optional step, but being registered in the office register gives your company a more professional rap, which is important for Webshops, which can otherwise be started by any Hans or Franz)

And at the next meeting....

• Breadcrumb 3: The form is filled out correctly, well done! But before you are allowed to submit it, you have to do an online search of registered & trademarked names to see if it's available. Then you can submit a query to do an official search of company names. Fill out query form z.

I emailed the form right when I got home. Sat around enjoying many rounds of golfing, waiting for the results from the search 1 week later.

• Breadcrumb 4: My query comes back saying the name is available and "suggests" I add a qualifier to the end of my company name that labels it in the type of business it is. Their suggestions are "Online Webshop" "Online Webseite".
  
  Since I don't want the word "Webshop" in my official company name,  I want to go back and ask in more detail about how rigid the rule is on their suggestion. I also wanted to ask why a close competitor with a similar name to mine doesn't have the name like "webshop" attached to their company name.

Sit back and enjoy the sun at the golf course because it's July and the person who answers that question is away for vacation in the meantime.

• Breadcrumb 5: Apparently the rule is this - if you use a 'fantasy name' like 'Partylicious Parties', then you don't have to add anything because it's a made-up name and not a real word.
   
  However, if your name only uses regular words like "ACME Parties", then you have to add something that narrows down what you do.
   
  E.g. if you are in event organization, you would have to have "ACME Parties Event Organizing" or in my case, with an online shop "ACME Parties Online Shop".
   

We compromised on appending "Shop" to my name and was told that would be fine for the company register.

• Breadcrumb 6: Great, looks like you're ready! But before you can submit your registration form, you will need to go to a Notary and have your signature certified so that you can legally sign documents for your company name.

Trot down to nearest Notary, sign a piece of paper and fork over 60 Euros at information desk. Apparently for only 60 Euros, you don't actually get to see the notary in person.

• Breadcrumb 7: Perfect, NOW you have everything you need. Take the form you filled out for breadcrumb 2 and submit it to the Austrian Justiz Landesgericht für ZRS Graz. (some justice building?) This will take about 10 days to clear.

10.9.8.7.6.5.4.3.2.1 and it arrives! I got even more golfing done during this time, so win-win :-D

• Breadcrumb 8: Everything looks good, but before you register your official company name, we will help you fill out this "Neufög" form, which is how you apply for not having to pay any registration fees as a first-time business owner...

But the good news was that 8 was the last step! Then it only took 5 minutes for them to send off my application for registering my company effective September 1, 2016.

Alles Party Shop e.U.
(e.U. means registered company)