American company VAT?

Discussion in 'Accounts & Finance' started by TurboIT, Feb 15, 2014.

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  1. TurboIT

    TurboIT UKBF Newcomer Free Member

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    My website is hosted in the USA

    All invoices have the companies address and a VAT number as follows "VAT Number EU999999999" I've change the number to all 9's to be polite to them.

    Now can i claim back this VAT, am i being charged VAT it makes no mention of VAT specifically on the invoice? If i can I presume only from the date of my VAT registration

    The website was running for 4 months before incorporation and i had some additional purchases to do with the website before incorporation. I presume these get accounted as on the day of incorporation as they were to prepare for starting the company.
     
    Posted: Feb 15, 2014 By: TurboIT Member since: Jan 3, 2014
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  2. faradaykeynes

    faradaykeynes UKBF Ace Full Member - Verified Business

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    Is your hosting company EU vat registered? if yes then you can give them your vat number to make invoice zero rated and you will have to account for / report Reverse Charge VAT Box 1,4 & 6. Here is link to VAT treatment on Goods & Services
    You can claim back any vat charged from your vat registration date provide you are not on flat rate scheme.

    Reclaiming VAT on services you bought before registration
    You can reclaim VAT on services you bought during the six months before you registered for VAT if both the following are true:

    • the services were bought by you as the entity (for example, the individual, business or organisation) that is now registered for VAT
    • the services are for your VAT taxable business purposes, which means they must relate to VAT taxable goods or services that you supply
    You cannot reclaim VAT on any of these services:

    • services that relate to goods you disposed of before you were registered for VAT - for example, repairs to a machine you sold before you were registered
    • services that relate to goods or services you supply that are exempt from VAT
    Examples of services you might have paid for when starting your business are legal and accountancy fees, services relating to setting up your computer and other equipment, and fees and services relating to your premises. You can reclaim the VAT on these and other services assuming all the conditions listed here are met.
     
    Posted: Feb 15, 2014 By: faradaykeynes Member since: Apr 19, 2012
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  3. talkinpeace

    talkinpeace UKBF Ace Free Member

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    VAT does not exist in the USA in any way shape or form
    no American expense goes in the VAT bits of a return

    (if they did have VAT their budget might start to balance, but that is another discussion)
     
    Posted: Feb 15, 2014 By: talkinpeace Member since: Jan 3, 2009
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  4. faradaykeynes

    faradaykeynes UKBF Ace Full Member - Verified Business

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    There they call it sales tax
     
    Posted: Feb 15, 2014 By: faradaykeynes Member since: Apr 19, 2012
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  5. talkinpeace

    talkinpeace UKBF Ace Free Member

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    but Sales Tax and VAT are utterly unrelated at the business level
    there are none of the increments or border transfers
    PLEASE do not confuse the two

    I've railed against Ebay confusing Sales tax with VAT for years ....

    Sales tax is different in every state and is NOT included in the price on the shelf (a criminal offence in Europe)
    in New York its 8%
    in New Jersey 12%
    and the scope covered is random depending on pork barrels ....
     
    Posted: Feb 15, 2014 By: talkinpeace Member since: Jan 3, 2009
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  6. faradaykeynes

    faradaykeynes UKBF Ace Full Member - Verified Business

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    Posted: Feb 16, 2014 By: faradaykeynes Member since: Apr 19, 2012
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