I think you have the wrong understanding, VAT is applied irrespective of origin, so the same reduction would apply to domestic products. To simplify, US produ

I think you have the wrong understanding, VAT is applied irrespective of origin, so the same reduction would apply to domestic products. To simplify, US product for sale for £100, then VAT would be £20 ( assuming 20% rate) UK product for sale for £100, then VAT would be £20 ( assuming 20% rate)