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Unusual States Tax/VAT Question
 

I have been reviewing an opportunity to purchase a very similar business to ourselves in the states, the turnover is around 500,000 usd before costs/expenses. So my question is how is vat & tax calculated.

In the UK we have a VAT threshold and once hit we need to charge VAT- is it the same in the states? If it makes a difference, it is based in California.

Or is what you pay to the government based on your profit?

Thanks guys any help is appreciated.

Re: Unusual States Tax/VAT Question
 

We do not have VAT, depending on the state and each state's laws you will have to charge sales tax or not on each item, that is the only tax you would have to worry about. Of course there are federal income taxes you would have to pay @ the end of the year, but not for every individual item sold.