Do i need pay VAT in USA with Estonian company? B2C

[megaone]

#USA #EU #VAT

Hi,

I founded a tech company in Estonia. We operating international website where users can buy contents (pictures & videos).
If i have company with residence in Estonia (EU) but customer from USA and make a (B2C) purchase on my website, do i have to pay VAT to USA? (Based on residence state of customer)

Thanks in advance for your assistance.

 

[Marzio]

do i have to pay VAT to USA?

There's no VAT in USA

 

[Sols]

There is no VAT but there is sales tax in most states. Each state has its own regulations but some states have tried to harmonise (Home). There was also a US Supreme Court ruling a few years ago which opened up for sales tax collection on non-resident sellers.

In reality, it's a bit like EU VAT for non-EU sellers. Even if you should technically charge and pay sales tax (in some cases), practically no one does. Enforcement is even more lax than in EU.

The only non-US companies I have seen charge/pay state sales tax have been high-value physical goods ecommerce.

 

[megaone]

Thanks. Yes, i mean VAT = Sales tax in US.
So, not to charge tax on purchases?

 

[Sols]

So, not to charge tax on purchases?

Most companies don't bother with it and face no repercussions.

But is it technically correct? Not always.