EU VAT Guide for Freelancers — Rates, Rules & Invoicing Tips
VAT (Value Added Tax) rules in the EU can be complex. Invoicey helps by auto-calculating VAT based on your client's location, handling reverse charge for B2B intra-EU services, and including the correct legal mentions on your invoices.
Our documentation includes VAT rates for all 27 EU countries, reverse charge rules, and an interactive calculator.
EU VAT rates by country
VAT rates vary significantly across the EU and UK. The table below shows the standard rate, reduced rate(s), and any notable local rules for all 27 EU member states plus the UK. Use these as a reference — Invoicey applies the correct rate automatically when you enter your client's country.
What must a legal EU VAT invoice include?
EU VAT law (Council Directive 2006/112/EC) sets out specific mandatory fields that every VAT invoice must contain. Missing even one field can make an invoice legally invalid and prevent your client from reclaiming the input VAT. Invoicey enforces all required fields automatically — you cannot generate a non-compliant invoice.
- 1Sequential invoice number (unique, non-repeating)
- 2Invoice date (date of issue)
- 3Due date / payment terms
- 4Your full legal name and address
- 5Your VAT registration number (if VAT-registered)
- 6Client's full legal name and address
- 7Client's VAT number (for B2B intra-EU transactions)
- 8Description of goods or services supplied
- 9Quantity and unit price of each line item
- 10Net amount, VAT amount, and gross total per VAT rate
Reverse charge VAT explained
When you sell services to a VAT-registered business in another EU country, you do not charge VAT on the invoice. Instead, the tax liability shifts to the buyer — this is called the reverse charge mechanism. Your invoice must include the note: "Reverse charge — VAT to be accounted for by the customer." This applies to most B2B cross-border services within the EU under the general rule of Article 44 of the EU VAT Directive.
Your invoice should still show the net amount and 0% VAT, along with the reference: "Article 196 of Council Directive 2006/112/EC." This tells the tax authority and your client's accountant exactly which rule applies. The buyer then declares the VAT in their own country at their local rate, which means the net cost to them is typically the same as a domestic purchase.
Invoicey applies reverse charge automatically when you enter a valid foreign EU VAT number. The VIES validation confirms the number is active, the correct legal wording is added to the invoice, and the VAT line is set to 0% — no manual calculation or legal research required on your part.
Special rules: France, Germany, Netherlands
France
Auto-entrepreneurs (micro-entrepreneurs) with annual service revenue below €36,800 (2024 threshold) are exempt from charging TVA. Every invoice must include the sentence: "TVA non applicable, article 293 B du CGI." Invoicey adds this wording automatically when you set your status to auto-entrepreneur in France.
All French business invoices are also required by law to display your SIREN number (9 digits) or SIRET number (14 digits). Invoicey stores these in your company profile and includes them on every invoice automatically.
Germany
The Kleinunternehmer (small business) regulation under §19 UStG exempts businesses with under €22,000 annual turnover from charging Umsatzsteuer (VAT). Invoices must include the mandatory statement: "Gemäß § 19 UStG enthält der Rechnungsbetrag keine Umsatzsteuer." Invoicey inserts this automatically for German freelancers with Kleinunternehmer status.
German businesses that are VAT-registered charge 19% (Regelsteuersatz) on most goods and services, or 7% (ermäßigter Steuersatz) on qualifying items such as food, books, and certain cultural services. Invoicey applies the correct rate per line item.
Netherlands
The KOR (Kleineondernemersregeling) exempts Dutch businesses with VAT-exclusive annual turnover below €20,000 from charging BTW (BTW = the Dutch term for VAT). If you apply the KOR, your invoices should include the appropriate exemption wording and you do not charge BTW.
For B2B cross-border EU transactions, Dutch freelancers apply the standard reverse charge with the note "BTW verlegd" on the invoice. The 21% standard BTW rate applies to most domestic B2B services; the 9% reduced rate applies to qualifying goods. Invoicey handles all Dutch BTW scenarios based on your registration status and client location.
Frequently asked VAT questions
Do I need to charge VAT on invoices to UK clients after Brexit?
It depends on whether your client is a UK VAT-registered business or a consumer. For B2B: apply reverse charge and show 0% VAT with the note "Reverse charge applies." For B2C: you may need to register for UK VAT or use the One Stop Shop (OSS) if your EU-to-UK consumer sales exceed the relevant threshold. Invoicey's VAT logic handles all these cases automatically based on the information you enter.
What is the VAT OSS (One Stop Shop)?
The OSS lets EU-based businesses register for VAT in one EU country and declare VAT on all EU consumer sales through a single return. If you sell digital services to consumers in multiple EU countries, OSS avoids the need for a separate VAT registration in each country. Invoicey exports your invoices in a format compatible with OSS reporting requirements.
I'm a freelancer — do I have to register for VAT?
In most EU countries, VAT registration is mandatory once your annual turnover exceeds a threshold: €36,800 in France, €22,000 in Germany, €20,000 in the Netherlands. Below the threshold, most countries have a small business exemption that lets you invoice without charging VAT. Rules vary significantly by country, so always verify with a local accountant — but Invoicey will handle the correct VAT treatment once you tell it your registration status.
Invoicey automatically applies the correct VAT rules for all EU countries — so you can invoice confidently without being a tax expert.
View full VAT guide →