Value-Added Tax: What U.S. Businesses Need to Know

Understand how most VAT systems work and why U.

S. companies should consider their VAT obligations before they start doing business outside the U.S.The U.S. is one of the few countries in the world that has not yet implemented a value-added tax (VAT) system. U.S. traders, therefore, are not aware of their VAT obligations when they sell, buy, or import goods outside the U.S. in the countries that have implemented a VAT system. U.S. traders often assume the VAT rules do not apply to them; they shouldn't accept invoices with VAT because they consider this a cost; or assume they don't have to charge VAT to their customers. Ignoring VAT rights and obligations often leads to significant penalties for non-compliance, loss of the right to reclaim the VAT (when claims are submitted after the deadline or the wrong procedure of claim is used), and lengthy discussions with suppliers and customers about the correct VAT treatment of a supply long after the supply was made. This course will help those responsible for the tax obligations of their company or customer to understand how most VAT systems around the world work and why U.S. companies should consider their VAT obligations before they start doing business outside the U.S. The material also explains what steps can be taken to assess these VAT obligations and how to avoid VAT and penalties for non-compliance as they indeed become a cost for the business.

Learning Objectives

• You will be able to differentiate between VAT tax and other taxes
• You will be able to differentiate how various countries handle VAT
• You will be able to identify the various types of VAT Taxes
• You will be able to identify which departments strategize on the VAT