Insights

Challenges European Businesses Face Navigating US Indirect Tax

The complexities of US tax means that European companies entering the market face an enormous regulatory and compliance challenge. They need to make sure they’re armed with help, advice and practical solutions. A background in European VAT is not going to help manage an expansion into the US. In fact, quite the opposite—assumptions can be a risky thing.

At its heart, VAT is a relatively simple tax—albeit one made tricky by the complexities of global trading, intricate supply chains, the subtleties of VAT Place of Supply rules and ever-increasing compliance requirements. In contrast, the US sales and use tax environment is hugely complex. It’s a highly-sophisticated network of locations, rules, tax types, rates and exceptions, with hundreds of thousands of possible variations.

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