Since the VAT tax is a sales tax, do not add this tax as a foreign tax paid in the Foreign Taxes Deduction/Credit section of your return. This would be reported as a sales tax that is reported as an itemized deduction in your return and may be claimed if your itemize deductions are greater than your standard deduction for the year.
- Go to federal or federal taxes
- Deductions and credits
- Estimates and other Taxes paid
- Sales Tax
Do not add this an expense anywhere else except where I mentioned above.
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