Tax liability of working in the UK for an NYC company

[jamesbrown]

That's not true - sales tax is applied to the purchase of goods and some services.

For example, the state of New York clarified in March 1993 whether pre-written software and custom software code was subject to sales tax. Up until that point, custom software code was not subject to sales tax, but now under certain circumstances (eg. modifying or enhancing pre-written software for a specific customer) are now taxable in NY.

Without knowing exactly what the OP is going to be doing for the client, then it's impossible to know whether there is any sales tax due or not.

There is plenty of information about sales tax on the New York State Department of Taxation and Finance website. In particular, I'd have a look at the Quick Reference Guide for Taxable and Exempt Property and Services, and if you are going to be working with software, document TSB-M-93 (3) S.

The only situation that I'm aware of that a US sales tax might apply is if the OP's company had a presence in the US that existed to facilitate the supply goods and services from his UK company within the US. Is that your point? Also, I'm not really sure what distinction you're trying to make between goods and services here. Yes, some services are taxed by some US states (although sales taxes on services are more the exception), but this isn't likely to be relevant to the OPs situation.

[TheFaQQer]

The only situation that I'm aware of that a US sales tax might apply is if the OP's company had a presence in the US that existed to facilitate the supply goods and services from his UK company within the US. Is that your point?

No, my point is that New York requires tax to be paid on goods and some services which are supplied in the state. That includes some categories of software, which the OP might fall into. Without knowing what the OP does, I can't comment on whether there is NY tax to pay or not - and neither can anyone else, since there are certain exempt services and certain services which are not exempt. Without knowing what the nature of the contract is, and what services are to be supplied to the client, I don't see how you can say one way or the other.

Also, I'm not really sure what distinction you're trying to make between goods and services here. Yes, some services are taxed by some US states (although sales taxes on services are more the exception), but this isn't likely to be relevant to the OPs situation.

I wasn't making a distinction - you were. You said that because the OP was providing services, there was no sales tax applicable. This is incorrect - sales tax applies to goods and some services. I'm not making a distinction at all, but you were:

The sales tax levied by US states applies to the purchase of goods in the US. You are supplying services to a company in the US, not purchasing goods from the US.

[jamesbrown]

No, my point is that New York requires tax to be paid on goods and some services which are supplied in the state. That includes some categories of software, which the OP might fall into. Without knowing what the OP does, I can't comment on whether there is NY tax to pay or not - and neither can anyone else, since there are certain exempt services and certain services which are not exempt. Without knowing what the nature of the contract is, and what services are to be supplied to the client, I don't see how you can say one way or the other.

I wasn't making a distinction - you were. You said that because the OP was providing services, there was no sales tax applicable. This is incorrect - sales tax applies to goods and some services. I'm not making a distinction at all, but you were:

Obviously, the OP should seek professional advice for a detailed and accurate opinion. That being said, a US state cannot require a foreign corporation to collect and remit sales (and other) tax unless that foreign corporation has a taxable presence in that state. There is a nexus standard for this and, if the OP is operating through a simple IT services company in the UK (without a physical presence in the US or, at the very least, a "significant economic presence"), the OPs company is unlikely to have a taxable presence in any US state. In my view, your provision of the above links (about what goods and services might be taxable in principle) belies a misunderstanding of this. Until a taxable presence is established, it's a waste of time exploring the details of how companies with a taxable presence might be taxed. However, it is a complex area (witness the back-and-forth re: Amazon and other big companies about what constitutes a "significant economic presence" that leads to a taxable presence in a US state), so the OP should feel free to get expert advise.