Does USA use any type of indirect taxes? if any exits, any process of filing them?

general question- One resource says US company must charge a customer due to customer’s country and it’s not a cost for US company or EU customers.Then what is the process after VAT is charged to customers and collected from them?

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Answer

  1. 73 Answers

    Hi so VAT is not an expense or a cost to a US company. When someone purchases a product you are selling in another country upon checkout the customer is charges VAT. In your books, you would record the Gross income and the VAT collected would be placed on the balance sheet. VAT is usually remitted quarterly so when you get ready to pay the VAT you are remitting what you have been holding (the amount collected from the customers) and sending that to the correct Revenue Office.

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