Help with VAT for USA company

Discussion in 'International Business' started by elsmythe, Mar 7, 2021.

  1. elsmythe

    elsmythe UKBF Newcomer Free Member

    1 0
    Hi all,
    I am looking at possibly setting up a USA company for an eCommerce store.
    We are currently fulfilling orders within the UK, but going to be paying a fulfillment company to fulfill these orders.
    A large part of our customers are based in the UK, and we haven't quite hit the threshold it should be in the next few months.
    My question is if we are a USA company, do we still need to charge VAT if we sell to UK customers.
    All help and support regarding this, and i am prepared to pay for advice on this issue.
    More details are available if anyone needs it, but i am a newbie when it comes to this
     
    Posted: Mar 7, 2021 By: elsmythe Member since: Mar 7, 2021
    #1
  2. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Any foreign company, fulfilling orders to UK customers, are required to register for UK VAT so yes, you would still need to charge VAT in that case. And given that the goods would be physically in the UK at the time of purchase, that makes it doubly true.
     
    Posted: Mar 7, 2021 By: japancool Member since: Jul 11, 2013
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    You would charge UK customers VAT, however you would claim against that money any payment made for VAT.
    Think of it like a sales tax paid by the buyer, that you collect, against which you offset any VAT the business pays out for fulfilment / stock / accountant etc.
     
    Posted: Mar 7, 2021 By: Mr D Member since: Feb 12, 2017
    #3