{"id":2655,"date":"2019-08-27T06:25:15","date_gmt":"2019-08-27T06:25:15","guid":{"rendered":"https:\/\/way2vat.com\/?p=2655"},"modified":"2022-11-02T19:34:11","modified_gmt":"2022-11-02T19:34:11","slug":"understanding-the-difference-between-american-sales-tax-and-the-vat_gst-system","status":"publish","type":"post","link":"https:\/\/way2vat.com\/understanding-the-difference-between-american-sales-tax-and-the-vat_gst-system\/","title":{"rendered":"Understanding the Difference between American Sales Tax and the VAT\\GST system"},"content":{"rendered":"

When you\u2019re a business owner, you know that every little bit helps the bottom line. You have to pay a myriad of small and larger expenses, tax payments, and travel costs, and although each one might be a minor cost, they can all add up to a lot of money leaving your business every year. That\u2019s why it\u2019s crucial to make the most of every deductible expense on your tax return – and your VAT\\GST reclaim. <\/span><\/p>\n

When you submit a VAT\\GST reclaim, you can get back some of the money that your company spent on business travel, imported goods, and other expenses. But before you can start making the most of your VAT\\GST refund, it\u2019s critical to understand the difference between refundable VAT\\GST, which can be reclaimed through a VAT\\GST return, and non-refundable sales tax. <\/span><\/p>\n

What is VAT\\GST?<\/h3>\n

Many businesses in the USA miss out on valuable VAT\\GST reclaim opportunities in countries that permit VAT\\GST refunds, even though the United States itself doesn\u2019t have a system of refundable VAT\\GST.<\/p>\n

A company that\u2019s non-resident or not registered for VAT\\GST can still end up paying significant amounts of VAT\\GST in countries that do have a VAT\\GST system in place. Here are a few examples of situations when you (as an American business) could end up paying refundable VAT\\GST:<\/p>\n