Katherine1972
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Should I be registering for any form of tax in the USA ?

Should I be registering for any form of tax in...

Hi there

We are a small business supplying training services to a large multinational company. I am clear that when our services are supplied overseas that no UK VAT is applicable - however, we have just been contracted to do a large number of training deliveries in the USA and I am concerned that we may fall foul of some US Tax legislation. Understanding that there is no VAT in the US on services/goods, is there anything else I should be looking out for ? Have had a look through the IRS website, but am still none the wiser ! Any help is greatly appreciated.

Many thanks 

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27th Jun 2012 12:49

Well...

I'm no expert in US taxes, but from the facts given I would have thought you'd be protected by the UK/USA double tax treaty and not be liable for any US taxes, unless you create a fixed place of business in the US.  That would be quite hard to do if you are purely delivering training for clients.  You will need to be careful if you have anything approaching an office in the US, or if any individuals start to spend a large number of days in the US.

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27th Jun 2012 15:05

Need to complete form W-8BEN

You will need to complete form W-8BEN to establish that you are not a US company and to state that you are the beneficial owner of the income. This will enable you to be paid without withholding tax of 30% under the UK/US tax treaty. Your customer should get you to do this but the forms are available f.o.c. on the internet.

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27th Jun 2012 23:53

In addition

 

You probably need to apply for visas that allow you to work in the US

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Tim Vane
28th Jun 2012 06:31

.

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