Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of reducing VAT on US firms exporting to the UK.

In line with international guidelines, VAT is charged equally on goods and services consumed in the UK whether they are produced domestically or imported. VAT is ultimately paid by the final consumer, similar to US sales taxes. Businesses in the supply chain can typically reclaim the VAT they pay, including import VAT.