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Is US sales tax applicable ?


Got a UK based business client who has purchased an electronic (internet based) service from a US supplier and they have charged US Sales tax.

Is this correct as everything that I have read on the net says that the US do not charge VAT and sales tax is only charged to "inland" customers ?



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By Hansa
03rd May 2012 14:10

Seems strange ...

We deal with a number of US suppliers and have never been charged sales tax (in those states that have it - not all do).

However there has been a lot of noise in the USA about companies "avoiding" sales taxes by not establishing a presence in that state but selling into it.  (I understand that purchasers are, somewhat unrealistically, supposed to voluntarily declare and pay in their own state).   It just could be that whichever state is involved has put in place a blanket tax liability (Switzerland does this - locally provided services are taxed whether you are resident or not) ...  More likely is that its either an error or a try-on! 

You're not going to know unless you reject the bill (with the reason). 

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