I recently moved to Tennessee from Amsterdam, the Netherlands. I'm a web developer with a large client base in the Netherlands. In Holland I was required to add 21% tax (VAT) to my invoices for Dutch clients. However, whenever I billed clients in non-EU countries the tax rate on my invoice had to be 0 % (VAT reverse charge).

Now the tables have turned. Since I will be invoicing my Dutch clients from my newly founded LLC in the US, how do I handle the tax aspect of my invoice for my Dutch clients? Do I put 0 % sales tax on my invoices? Do I charge the regular tax amount for my new home state? Do I charge no tax at all? For what it's worth, I work from home.

Edit: I've contacted a TN accountant, see answer below.

  • 1
    I think you need an accountant familiar with international billing as well as Tennessee. I don't believe I've seen any freelance accountants here. You may be better of contacting accountants in your local area.
    – Scott
    Commented Aug 3, 2016 at 21:13
  • 1
    Thanks Scott. Talked to an accountant, will post back here for future reference.
    – appel
    Commented Aug 4, 2016 at 14:13
  • 1
    Thanks for updating! You should post that as an answer to your own question (and you can mark it correct as well).
    – Scott
    Commented Aug 6, 2016 at 1:12

1 Answer 1


I've contacted a TN accounting firm, here's what they said:

"You can put 0% tax rate on your invoice if you like, but the main thing is that the invoice should clearly show that it is an out-of-state customer (with an address from another state or country). TN considers web design and development as the creation of software on the customer’s server. So if your customer is located in TN then you would be subject to TN sales tax on that sale. You are not subject to TN sales tax on sales you make outside of the state or country."

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