Is it mandatory to charge Value Added Tax (VAT) in US? and if Yes how many Percentage?
There is no VAT in the US. There is no (yet) federal sales tax. Each state and municipality has their own (or none like here in Oregon). Rates vary from 0% to 11%.
If you are in the UK and asking if you need to charge VAT for orders sent to the US, I think the answer is no, but John would be the one I’d trust to answer that specific question.
If you are located in the United States, sales tax is supposed to be collected for each state by the seller. If the seller doesn’t collect it, the buyer is responsible for paying it to their state.
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Sales tax rules are quite interesting and can be complicated.
As an example this is the general rule:
If an online retailer has nexus (a physical presence in a state), it must collect sales tax from customers in that state.
If a business does not have a physical presence in a state, it is usually not required to collect sales tax for sales from customers in that state.
However, nexus can be determined by once a week deliveries by truck - furniture or office supplies as an example.
If you are sending goods from the UK to the US,you do not charge VAT.
when you do your vat return the costs of “exporting goods to a non eu region” box must be filled in for how much you sent.
Also make sure you keep copies of the delivery receipt/export invoice as the Vatman will inevitably want it at some stage.
Basically they are rated a vat code T0 = non vatable in most accounts packages
John
[QUOTE]If the seller doesn’t collect it, the buyer is responsible for paying it to their state.[/QUOTE]
Right, referred to as “Use Tax” for both personal or business related purchases and reported during preparation of state sales tax returns for businesses, or end of year state tax returns for personal purchases.