What VAT / taxes should a US company based in Illinois charge to a customer in Toronto on software sales? As we are the UK Head office preparing the invoices globally.
Thanks.
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get an accountant
I would strongly advise that you get a US accountant as soon as possible, as you are missing the basics of Sales Tax.
Sales tax is NOT charged when selling from one State to another, a fortiori, to another country.
Read this http://tax.illinois.gov/Publications/Pubs/Pub-104.pdf for more information.
get an accountant stateside and here.
Sales tax is not VAT, it is very different.
Hire a stateside accountant in IL where your US corporation opened to handle all sales tax issues. Do so pretty much now. They will probably be an affordable option for your US corporate tax forms as well. Payroll taxes will be more affordable outsourced to ADP or Paychex, plus ADP can implement a retirement plan and/or health insurance plans as part of their service at a lower cost than a stateside accountancy firm can.
Hire an accountant based here to restructure your stateside venture to a better one that works well with your UK taxes. By setting it up in IL, you could be costing your company way too much in state taxes. A DE or NV may save you a lot of state tax dollars.