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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
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Experience:  Over 20 Years experience
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Delaware LLC. I sell to Europe. Do I need VAT registration?

Customer Question

Hi, I am starting a home based business and my activities are: a) Selling laptop decals through an e-commerce website and b) Design and Develop websites. In order to operate legal I created an LLC company that is based in Delaware. (I am physically based outside of the U.S..) 

As I am going to sell services and ship products to European customers and European Businesses I want to ask the following: 

1. Do I need to register for VAT and charge VAT on the e-invoices that I issue for my European Customers? (when they buy my products on-line) 

2. Do I have to charge VAT to the European companies that I provide services. (when I create a website for a European company) 

3. What company details should I mention on the invoices that I issue in order for the invoice to be legible. 

4. They told me that Delaware charges 0% tax on my company's income and I only have to pay an annual fixed franchise tax. Is there sth else I should be aware of? 

Thank you!
Submitted: 5 years ago.
Category: Tax
Expert:  Rachel-Mod replied 5 years ago.

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Customer: replied 5 years ago.

Yes I am still waiting for an answer. Please do your best to find me an Expert that has experience on my questions asap.

Thank you.
Expert:  Rachel-Mod replied 5 years ago.

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Customer: replied 5 years ago.

Yes please continue searching. The problem is that I need an answer asap.

Thank you.


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Customer: replied 5 years ago.

Thank you for your help. I will wait a little more.

If I cannot get an appropriate answer by Tuesday I will ask my money back.

I also saw that my question is listed as UK TAX category. My company is based in Delaware and not UK. Please check this as it might help finding the right professional.

Expert:  R. Klein, EA replied 5 years ago.

Why are you set up as a Delaware LLC? If you are not in the US, you have no nexus to the US or Delaware.


Answering your question is not possible because you are not selling from or to the US and you did not indicate what country you ARE in.


Since there is no connection to the US for all intents and purposes, you are not affected by US laws regarding sales taxes.


The mere fact of setting up a US corporation does nothing for you, taxwise, except pay an annual franchise tax on zero US income. You will still need to pay tax on your income to your home geo-political units.


The US does not have a VAT, and if you are not based in the US, you do not need to collect sales tax from US customers, either.


Your question should be posed to someone who knows the VAT laws of the country you plan to do business in. The US is out of this equation.



Customer: replied 5 years ago.
Relist: Incomplete answer.
Expert:  R. Klein, EA replied 5 years ago.

If you are selling from the US:


1. You do not need to register with VAT authorities because out of state or out of country sales do not require you to collect tax for other places.

2. Moot tax collection required.

3. Nothing

4. If your sales are from the US, you will need to file an annual US tax return and Delaware state income tax return.