What is an american company?

[Alext333]

Hi All, just trying to workout our percentage of sales in the USA for the company insurance. We deal with a USA company that has UK offices and pays UK VAT. Would this be classed as an American company or a UK company on the company insurance?

Cheers for any help

 

[Ozzy]

If you are dealing with the UK company (even if it is owned by a US company) and you are delivering your services to the UK company, in the UK, then this is UK trade.
US trade is only what you are delivering to the US and/or billed to a US company.

 

[Alext333]

Thanks so much

 

[Frank the Insurance guy]

We deal with a USA company that has UK offices and pays UK VAT

Is your contract with the USA Company, or the UK company?
Is your invoice to the USA company or the UK company?
Are you delivering services to the USA company or only the UK company?

I suspect you are contracting with the USA company to deliver services to their UK subsidiary/branch - if this is the case, all the turnover is considered "USA" for insurance purposes.