- Recent confusion about VAT suggests it acts as a tariff against US companies
- Tariffs are taxes on imports to protect domestic industries
- VAT applies to all businesses and can be recovered by registered businesses
- VAT cost falls on the final consumer, not businesses
- Some US businesses face VAT costs due to lack of registration and missed reclaim opportunities
- VAT costs arise from misunderstanding and lack of proper procedures
- US businesses can avoid VAT costs by registering, using refund mechanisms, and planning effectively
- VAT is a consumption tax, not a tariff, and should be neutral with proper management
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
