charging VAT to US customers

[mikek]

We run a record store at http://www.subtonix.org

 

I have successfully set up a tax class which charges european union customers with VAT at 17.5%

 

We are beginning to get orders from the states so i need to now set up a means to still charge VAT but to the new United States based customers.

 

I have set up a Tax zone and Rate for United States in the same way I did for European Union (following the example on http://www.oscommerce.info/kb/osCommerce/A..._and_Taxes/169) but am finding when i set up a new account in our store with a United States address, the prices are still displaying without VAT.

 

Any thoughts on how to solve this? I want to sell globally but can't if i am loosing my VAT (we are VAT registed in UK so have to sell everything with VAT wherever they are from)

 

many thanks

mikek

[♥radders]

We run a record store at http://www.subtonix.org

 

I have successfully set up a tax class which charges european union customers with VAT at 17.5%

 

We are beginning to get orders from the states so i need to now set up a means to still charge VAT but to the new United States based customers.

 

 

Any thoughts on how to solve this? I want to sell globally but can't if i am loosing my VAT (we are VAT registed in UK so have to sell everything with VAT wherever they are from)

 

many thanks

mikek

<{POST_SNAPBACK}>

I have looked into this but cannot claim any expertise. What I understand is this:

 

Surely it is illegal to charge VAT to customers from the USA? Unless you are on the Flat Rate Scheme then you don't pay VAT on sales to the USA.

 

If you are on the flat rate scheme then you save by paying a rate of only 6% on worldwide gross sales even though you invoice inclusive of 17.5% VAT though you cannot reclaim input tax. In that case I'm not sure that you need oscommerce to handle the VAT at all.

[mikek]

Ah. My mistake. I'll set it back to how i had it with no VAT. I'll also get my VAT book out and do a bit of read up.

 

Thanks for your useful info.

mikek