Starting A Business Abroad Q&A Forum

Post: Claiming back VAT in the US

Q) We have clients that send invoices to the States with VAT. Could you detail how the US firm goes about claiming back VAT. And conversely if we are charged VAT here from a country in say, Norway, how we go about reclaiming the VAT.

Answered by Clive Lewis, ICAEW,

Customs and Excise say that when goods are exported from the UK they should not have any VAT put on them. If there is VAT, it will have been imposed by US Customs and Excise and equivalent. There seems no apparent reason why your clients should charge VAT in the first place - they shouldn't be.

Conversely, if you are importing goods your supplier should not be charging you any duty. However, import duty in the form of VAT is added by the UK Customs and Excise to your imports. This is treated in exactly the same way as any other VAT when it comes to being able to reclaim it.

Ask Customs and Excise for Notices 702 and 703 or print them off their web site (www.hmce.gov.uk).


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