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I'm an EU citizen (living and working from Austria) and have a customer in Johnson City, TN, USA. When issuing invoices for software development services I rendered, is there any reverse charge applicable, or should I issue my invoices with a 0% tax?
Also, which local tax law resources are there available in Tennessee, and where to start looking?
In most US states, the only tax that might be assessed would be a "sales tax". (I am not in Tennessee. I am not a tax attorney or tax accountant.) For me to collect the tax on an invoice when I sell something, I have to first register with the state and receive a "sales tax ID". In many states, software services are not taxed. And if they were, your client has the responsibility to pay it if you don't have the state tax number to collect it yourself. In most cases, the onus is on your client, not you. Now, if you were a large multi-national company and generating millions of dollars in sales in that state, the state might ask you to get a tax id and pay the tax.
Tennessee has their sales tax information online. See https://revenue.support.tn.gov/hc/en-us/articles/360058232252-SUT-58-Computer-Software-Sales-and-Use-Tax-Application-Overview and https://www.tn.gov/content/dam/tn/revenue/documents/notices/sales/sales15-14.pdf In those, it states that the purchaser has the responsibility to pay the tax if you do not collect it.
