Sent VAT Invoice at 7.5%

I have been sent a VAT invoice from a company based in Texas US (With a GB VAT number) However the rate of VAT is 7.5% surely this can’t be correct?



This is not a UK tax rate, looks like a US sales tax rate. You won’t be able to reclaim this, instead this sale should be marked as Out of Scope for UK VAT.

That is what I thought! But then I realised they had a GB VAT number, what difference (if any) does this make? Should they not be charging 20% VAT?

And btw Glenn, Your responses are always brilliant… It does seem that you have become my out of hours (non)accountant!

Always glad to help if I can!

Regarding the invoice I would ask your supplier to clarify. There are only 3 UK VAT rates so this is almost certainly US Sales Tax.