How to Invoice as a Freelancer in the EU
EU invoicing rules are based on the VAT Directive (2006/112/EC), but each country adds its own details, such as registration thresholds, small-business schemes and record-keeping periods. Use this as an overview and check your national tax authority's website for specifics.
1. Know your VAT status
Many EU countries have a small-business scheme that exempts freelancers below a turnover threshold from charging VAT. If you use one, invoices usually need a note stating that VAT is not charged. If you are VAT registered, include your VAT number on every invoice.
2. Domestic clients
For clients in your own country, charge your local VAT rate (unless exempt) and show the rate and amount on the invoice.
3. Business clients in another EU country
For most services to VAT-registered businesses in another EU country, the reverse charge applies: you don't charge VAT, you include both VAT numbers, and you write "Reverse charge" on the invoice. Check the client's VAT number with the EU's VIES service. You may also need to report these sales in an EC Sales List.
4. Private clients in another EU country
Rules differ for consumers, especially for digital services, where VAT of the customer's country can apply (the One-Stop Shop, OSS, scheme exists for this). Check your situation before invoicing.
5. Clients outside the EU
Services to businesses outside the EU are often outside the scope of EU VAT, but the wording required on the invoice varies by country.
6. Payment terms and currency
Within the EU, Directive 2011/7/EU on late payment generally sets a 30-day default for B2B payments when no term is agreed, and allows statutory interest on late payments. You can invoice in any currency, but VAT amounts may need to be shown in your national currency.
General information, not tax advice.