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A client from EU is asking me, "Will you invoice them including VAT or local equivalent (sales tax)? If so, what will be the rate?"

Should I tell them to prepare a IRS form?

Do you know if there is a sales tax that I should ad to my invoice?

I am doing a website design.

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From EU perspective it works like this:

If you buy goods for the purposes of your business from a supplier based outside the EU, you must generally pay VAT at the point of import (and may deduct this in your next VAT return if you make taxed sales).

http://europa.eu/youreurope/business/vat-customs/cross-border/index_en.htm

I don't know anything about the US though.

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  • Anyway, there is no VAT at all on the sales of services outside of the EU. Check the US regulations about services.
    – Harry Cover
    Sep 23, 2015 at 10:31
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    The laws in the EU have now changed, and services provided on-line in an automated way without a significant human intervention are liable for VAT, even if they are provided from outside your home nation within the EU, or even outside the EU.
    – Euan M
    Nov 24, 2015 at 18:45
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You only charge the taxes to people in your state/country.

You don't need to charge the taxes to people living in other country than yours if you're in USA. Simply do your invoice without the taxes. There's no special form to fill for your client.

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