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My firm is based in the Netherlands. I have a customer in the USA who wants a website. The development will take place in the Netherlands. If the client would be Dutch, I'd charge them 21% VAT and this would be mentioned in my proposal.

I'm currently writing a proposal for the USA client and I would like to mention if, and what taxes will be applicable. The Dutch tax authority tells me that I have to apply the the USA tax laws. What taxes do I mention in my proposal if the work is say €1200,- ?

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    I'm not sure enough to post an official answer, but I don't believe this is taxable in the US. There is no VAT and this type of service is not subject to sales tax. (Also there's not sales tax at the federal level and it's unclear that you'd be subject to tax by any state.) – user32479 Dec 17 '15 at 15:42
  • I'm also not sure and I think you should use taxes for country where is your comany based – Eugen Martynov Dec 17 '15 at 17:27
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    I would get clarified from an accountant. Firstly considering your business is based in Netherlands, I am not sure why you need to pay tax in US which should be your client's headache. Secondly there is the double taxation agreement between Netherlands and US which will come into play. This will get complicated so I would go and meet an accountant. – DumbCoder Dec 18 '15 at 10:41
  • money.stackexchange.com/questions/57186/… Some query like yours. – DumbCoder Dec 18 '15 at 10:42

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