can a US business charge vat to the UK (digital goods)

[Rardo]

with regards to digital sales (web hosting to be specific) can a company based in the US give me a invoice that includes VAT?
Are they allowed to charge for VAT if they are not registered because their in the US?

I'm asking because i am VAT registered myself, and need to know if I am able to claim VAT back on this or not, or even if i should pay vat on this.

Thanks in advanced

[dallis]

I don't think they can, but I'm not certain - I think that all businesses based outside of the U.K have goods and services which are VAT-free for their U.K customers.

[Graconnor]

Only UK VAT registered companies can charge VAT to other UK companies / individuals. IF they are charging VAT then they should have their VAT number on the invoice.

[Chris Ashdown]

Originally Posted by Graconnor

Only UK VAT registered companies can charge VAT to other UK companies / individuals. IF they are charging VAT then they should have their VAT number on the invoice.

Wrong any EU company that is vat registered should invoice including vat

Does the American company sell via a UK or EU office, i.e. where does the invoice state it comes from and does it include a vat number?

Are you confusing US state tax as VAT?

[tasmanialtd]

only companies with a VAT number can add VAT...and US companies do not have VAT...only "sales tax".

Not applicable in Europe.

[Graconnor]

[quote=Chris Ashdown;1997914]Wrong any EU company that is vat registered should invoice including vat

quote]

I think you should check on this. We deal with many European companies and we do not charge them VAT as they are not UK VAT registered.

Only UK VAT registered companies can charge VAT out to another UK Company or individual (VAT registered or not).

[tasmanialtd]

Graconnor...if an EU company has a EU VAT nr...you can charge VAT...there is a new Interstat that tracks this now...and declarations should be made...but you must have the VAT nr for both companies to do this.

You dont charge VAT if the other company doesnt have an EU Vat nr. though

[Graconnor]

Then I shall submit to your knowledge, however we as a company do not do things this way.

[kulture]

If ANY companies sales in the UK exceed £77k then they have to register to VAT and thus charge VAT. It does not matter if the company is registered in Russia, USA or the UK.

[faradaykeynes]

£77k threshold is for UK sales only, no need to account for out side UK sales for determining the vat registration. Even if company is VAT registered, generally exports of products or services outside UK are not subject to VAT but in some cases that does not apply.