Ask the Accountant

VAT in the USA!

03/05/2018

The finance director of a UK company has asked the following:
I’m about to bill a new client today in the US at their address in Chicago – do I still add VAT to my invoice as usual?

Shazim Moghal – Carrington Accountancy senior accountant answers:
As the client is based in the USA and you are also invoicing a USA registered company, you would not charge VAT on the invoice.

The total sales invoice will get included in the VAT calculation in the quarter it relates to, however, there will not be any VAT due to HMRC on this, as there was none charged.

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