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

CALL US ON +971 50 4467827 - TO SETUP YOUR NON-CRS COMPANY STRUCTURE IN DUBAI.
Bank Accounts, Company Formations, Tax Planning, Residency Solutions, and more

megaone

New member
#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.
 

Sols

Staff member
Mentor Group Gold
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.
 
Top