Hi I would like to know the opinion on following situation

Say for example, a business provider in usa buys website design services from a oversea company. The oversea company has a website and they accept payments by paypal or credit card. They do generate a invoice which has address of foreign.

Can we write such business expenses. The reason being, On the internet being virtual, there are so many oversea companies providing competitive IT services.

Can we write such expenses?

Yes, these are VALID business expenses which CAN be deducted. You should do so as long as you have a record of payment, which is available via the credit card statement and/or the PayPal statement.