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pjcs
5th July 2010, 03:09
Hi

I'm a UK based business and am planning to launch one of my products (it's a web based tool) in the US. It will be sold via a 3rd party in the US but I will be responsible for customer billing/service etc. I have done some research on what tax is applicable on sales. Is anyone able to confirm/or otherwise, my findings.

UK/EC VAT - not applicable since the product is 'consumed' outside of the UK/EC.

US state tax - again not applicable, since sales tax is only charged where the business has a physical presence in the same state as the customer.

At the moment, I'm working on the assumption that there is no sales tax to be added.

Does it being sold via a 3rd party complicate it? Is there anything i have missed?

Thanks in advance for any help

:)

akirk
5th July 2010, 07:28
If it is a web based tool that they use for their business, and they have UK customers it can complicate things :) as then there may be a VAT liability...

If though it is going to a non EU company, and as a web tool it is hosted outside the EU and can be shown to only be used for non-EU purposes then you may be fine not to charge VAT - I would check with the VAT man

Alasdair