A question from Yahoo! Answers:

If I own a corporation based in the USA how do I get my funds from European entities without it being taxed??

A large portion of the sales are within Europe and are already taxed locally. How can I get these funds to US accounts without being taxed by the US. E.G. Royalty payments. Any ideas?

The U.S. will typically give you tax credit for income taxes paid abroad (provided that there are tax treaties with countries in which taxes were paid). The U.S. will NOT give you tax credit for VAT.

You need to hire a Big Four accounting firm to prepare your tax returns; they are about the only people who have the requisite experience. Also, going forward you may consider listening to what they have to say about reincorporating outside the U.S. You could move your parent entity to Bermuda or consolidate your European operations into an Irish holding company. There are other options as well…