Value Added Tax

VAT is the world's most commonly used tax, affecting U.S. multinationals and their global supply chains.

James Freed

James Freed

Principal, State & Local Tax, KPMG US

+1 312-665-2627

Addressing the VAT challenge

Although not currently imposed in the United States, value-added tax (VAT) is levied in more than 150 countries, making it the world’s most commonly used tax and impacting most U.S. multinational transactions occurring while doing business overseas.

A business must account to the government for the VAT due on its income but it can usually claim a credit for VAT incurred on the cost of materials, imports and other taxable costs. Producers, wholesalers and retailers must pay this indirect tax and keep accurate records to ensure that they receive credits for the VAT they pay at every stage in the supply chain—from production to the ultimate sale of the goods.

A comprehensive view on VAT

KPMG’s U.S.-Based Value Added Tax team—a part of KPMG’s State and Local Tax practice—combines an international perspective and locally-based structure. Our professionals have real, hands-on experience working in VAT regimes across many countries in Europe, Latin America and the Asia Pacific regions, working with companies in all sectors and in all stages of their development.

We provide a full range of VAT services, including:

  • Reviewing an organization's establishments and supply chain to identify VAT registration requirements
  • Handling compliance needs
  • Helping to implement technology platforms to handle VAT
  • Assisting with audits by tax authorities 
  • Identifying VAT saving opportunities

Our U.S. team works closely with KPMG Global Indirect Tax professionals from KPMG’s member firms across the globe. We are able to mobilize international teams quickly and provide you with responsive and consistent service anywhere around the world.


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