You are a freelancer in the EU. You have a client in Germany. Another in France. Maybe one in the US. Your invoicing was simple when everything was domestic. Now it is not.
EU VAT with international clients is the topic most freelancers avoid until they get a letter from the tax authority. This guide covers the practical rules you need to follow, not the theory. Where to charge VAT, when to use reverse charge, what the thresholds are, and what your invoices need to include.
This is not legal advice. VAT varies by jurisdiction, and edge cases exist. But the fundamentals below apply across the EU and will keep you on the right side of compliance for the vast majority of cross-border freelance work.
The Core Rule: B2B vs B2C
Everything in EU VAT starts with one question: is your client a business or a private individual?
B2B (business to business). When you invoice another business in a different EU country, the reverse charge mechanism applies. You do not charge VAT. Instead, your client accounts for the VAT in their own country. Your invoice shows the net amount, states "VAT reverse charged per Article 196 of the EU VAT Directive," and includes both your VAT number and your client's VAT number.
This is the most common scenario for freelancers. If you do web development, consulting, design, copywriting, or any professional service for companies in other EU countries, reverse charge handles it.
B2C (business to consumer). When your client is a private individual in another EU country, you are responsible for the VAT. The rate that applies is the rate in the client's country, not yours. A freelancer in the Netherlands invoicing a private individual in France charges French VAT at 20%, not Dutch VAT at 21%.
Most freelancers primarily invoice businesses. If that is you, the reverse charge rules are what matter most. If you regularly invoice private individuals across borders, you need to read the section on the One Stop Shop below.
Reverse Charge: The Details
The reverse charge sounds simple, and mechanically it is. But the details trip people up.
Always verify the VAT number. Before invoicing a client in another EU country with reverse charge, verify their VAT number through the VIES database (the EU's VAT Information Exchange System). If the number is invalid, you cannot use reverse charge. You would need to charge VAT instead.
The invoice requirements are specific. A reverse charge invoice must include:
- Your full legal name and address
- Your VAT number
- Your client's VAT number (verified through VIES)
- A sequential invoice number
- The date of the invoice and the date of supply
- A clear description of the services provided
- The net amount (no VAT charged)
- The statement "VAT reverse charged" or a reference to Article 196
Missing any of these creates problems. Under the ViDA enforcement rules that took effect in 2026, automated systems cross-reference invoices between tax authorities. A missing VAT number or an incorrect reverse charge statement flags a discrepancy.
Report it correctly. Even though you are not charging VAT, you still report reverse charge transactions. In most EU countries, these appear on your periodic VAT return. In the Netherlands, it goes in your ICP declaration (Intracommunautaire Prestaties). In Germany, it appears in your Zusammenfassende Meldung (ZM).
The One Stop Shop (OSS)
If you invoice private individuals in other EU countries and your cross-border B2C sales exceed EUR 10,000 per year, you have two options: register for VAT in each country where your clients are, or use the One Stop Shop.
OSS is the practical choice. You register once in your home country. You file a single quarterly return there, reporting all your cross-border B2C sales broken down by country. Your home tax authority distributes the VAT to the relevant countries.
Who needs OSS:
- Freelancers providing services to private individuals in multiple EU countries
- Anyone whose total cross-border B2C sales exceed EUR 10,000 per year
- Freelancers selling digital products or electronically supplied services to consumers
Who does not:
- Freelancers who only invoice businesses (B2B reverse charge covers this)
- Freelancers whose cross-border B2C sales stay below EUR 10,000 (you can apply your domestic VAT rate instead)
- Freelancers who only work with domestic clients
If you fall below the EUR 10,000 threshold, you can still voluntarily register for OSS. Some freelancers do this for simplicity rather than tracking whether they have crossed the threshold.
Invoicing Clients Outside the EU
When your client is outside the EU entirely (United States, United Kingdom, Canada, Australia), VAT does not apply. Services provided to businesses or individuals outside the EU are outside the scope of EU VAT.
Your invoice should state "Outside the scope of EU VAT" or reference the relevant article. You do not charge VAT, and you do not need to use the reverse charge mechanism because the client is not in the EU.
The UK is outside the EU. Post-Brexit, the UK is a third country for VAT purposes. If you invoice a UK client, treat it the same as invoicing a US client. No EU VAT applies.
Keep evidence of where your client is. For audit purposes, you should be able to demonstrate that your client is indeed based outside the EU. Their business address, a copy of their company registration, or other documentation showing their location is sufficient.
VAT Registration Thresholds by Country
Every EU country sets its own threshold for mandatory VAT registration. If your domestic turnover exceeds your country's threshold, you must register, charge VAT on domestic sales, and file periodic returns.
Common thresholds for 2026:
- Netherlands: EUR 20,000 (KOR/Kleineondernemersregeling)
- Germany: EUR 22,000 (Kleinunternehmerregelung)
- France: EUR 36,800 for services
- Italy: EUR 85,000 (regime forfettario)
- Spain: No general VAT threshold for services (quarterly filing required)
- Belgium: EUR 25,000
- Ireland: EUR 37,500 for services
- Portugal: EUR 14,500
Below the threshold, you can choose not to register. Above it, registration is mandatory. Some countries, like the Netherlands, prohibit you from charging VAT or reclaiming input VAT while you are below the threshold and using the exemption.
Worth noting: the threshold only applies to domestic turnover. Cross-border B2B reverse charge sales typically do not count toward your domestic threshold. Check your specific country's rules on this.
What Your Invoice System Needs to Handle
If you work with clients in multiple countries, your invoicing setup needs to handle several things correctly:
Different VAT treatments per invoice. A domestic invoice charges your local VAT rate. A B2B EU invoice uses reverse charge. An invoice to a US client has no VAT. Your system needs to apply the right treatment based on where your client is and whether they are a business.
Sequential invoice numbering. Tax authorities expect unbroken sequential numbers. Gaps trigger questions. Your invoicing system should handle this automatically.
Currency handling. You can invoice in any currency, but VAT amounts need to be reportable in euros. If you invoice in USD or GBP, you need the ECB reference rate on the invoice date for conversion.
Record keeping. Most EU countries require you to keep invoice records for 7 to 10 years. Digital storage is fine, but it needs to be accessible and auditable.
Handling all of this manually is possible with one or two international clients. With five or ten, it becomes a significant time cost and a source of errors.
TAV handles multi-jurisdiction invoicing natively. When you add a client and their location, TAV applies the correct VAT treatment automatically: reverse charge for EU B2B, the right domestic rate, or no VAT for clients outside the EU. Sequential numbering, compliant invoice formatting, and full record storage are built in.
Set up compliant invoicing with TAV
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