Do I need to charge vat to American company?

denhamd2

Hi,

I have a question... do I need to charge VAT to American company?

thanks in advance

antoinolachtnai

there are a few gotchas with this but assuming they are in America, probably not.

dermot_sheehan

Products for export outside EU are zero rated for VAT.

dahamsta

Hmmm, so the EU forced American companies to charge Europeans VAT, but it's ok for us to sell to them without? Seems a bit kooky.

denhamd2

antoinolachtnai wrote:

there are a few gotchas with this but assuming they are in America, probably not.

ok its for Google Adsense advertising theyre paying me for from America, so there would be no VAT on this right?

antoinolachtnai

Interesting question. Google in most of the world is basically a Dublin-based operation. They certainly are if you're buying ads from them. For purchases in Ireland, I think they may be VAT-exempt by virtue of the large volume of exports they do. But you should ask them.

denhamd2

its for selling ads and the cheques are from america in US dollars...

antoinolachtnai

you don't charge VAT on that. They would have no way to get a refund on it.

is_that_so

No VAT. I get services from the UK and EU and I am charged no VAT. Usually all that is required is a valid VAT number. The relevant tax authorities then waive the VAT.