Value Added Tax

[jmc]

Is a foreign corporation doing business in California subject to Value Added Tax on income earned? Or in what kind of cases, does it apply?
Thank you.

[Snaggletooth]

No One Over Here Wants It

Sorry, jmc - it's no wonder your post hasn't had much response. No one in the US wants a VAT except greedy government people and so-called "fair tax" disciples like Boortz.

To try to turn attention to your question, I'm assuming you are addressing the tax prep community in the US, and the answer would be a resounding NO, even though California's government salivates at the very idea. There is no VAT due to the US Govt or to states.

Where the question poses its relevance is with the taxing authority of the foreign corporation. That would depend on the country which domiciles this corporation, whether they have a VAT, and whether they apply it to goods/services whose source is a country different than the domicile.

You might tell us which foreign government is home for this corporation, and there is a somewhat slim chance that one of our people have worked with that country's taxes. It won't be me -- I have only mild exposure to Canada and certainly not extensive.

But good luck...