Can you take a deduction for paying VAT on US income taxes?

Answer by  GilFinn (2065)

At this time, the VAT is only under concideration, and has not been implemented. However, if implemented, it is not likely that the VAT will qualify for any deduction for most people. There may be some exemptions allowed for business expenses. It will most likely be similar to the regular state and local sales taxes that you already pay.

Answer by  Latin4 (11170)

Yes, you must be registered. You can do this at your local revenue office. Filing for this is a seperate section of your tax form.

Answer by  LeheckaG (1826)

Foreign-VAT/Value-Added-Taxes are basically "sales-taxes" from the Internal-Revenue-Service's-viewpoint (if/when-subject-to international-RECIPROCITY). IRS Form-1040 Schedule-A "Miscellaneous-Deductions" allows you to itemize EITHER: State&Local-Income-Taxes or State&Local-Sales-Taxes, but NOT BOTH! IRS Form-1040(A) Schedule-L permits deducting new-motor-vehicle-sales-taxes/fees.

Answer by  Liz59 (10966)

Well, you can't legally take a deduction for paying the VAT. But perhaps you can include this taxes in another way. Talk to your accountant and see how you can cleverly manipulate this fact into your taxes without actually doing a scam. There is a way but only accountants know.