Billingz® Guides · EU VAT

Do EU freelancers charge VAT on invoices to clients in other EU countries?

Short answer

In most cases, no. For business-to-business services between two EU member states, the reverse charge mechanism applies. You invoice without VAT, note your client’s valid VAT ID, and add a line stating the reverse charge applies. Your client then accounts for the VAT in their own country.

That is the rule that covers most freelance work - design, development, consulting, writing, marketing - sold to a business in another EU country. The detail below is where it holds and where it breaks.

What the reverse charge does

It moves the VAT reporting from you to your client. You do not collect VAT and you do not pay it to your tax authority. Your client reports both sides of the VAT in their own return. For you, the invoice simply shows no VAT.

What the invoice needs

Your VAT number - the one registered in your country.
The client's valid VAT number - verify it in VIES before you invoice.
The net amount, with no VAT added.
An explicit note - "VAT reverse charged", or a reference to Article 196 of the EU VAT Directive.

If the client’s VAT number is invalid, reverse charge may not apply, and you could be liable for the VAT yourself. Checking VIES is not optional.

When you still charge VAT

The client is a private individual, not a business (B2C).
The client has no valid VAT number.
The service is a special-rule type - property-related work, events, restaurant and catering.

B2C digital services follow their own path through the OSS scheme, which is a separate topic.

One thing people miss

If you are below your domestic VAT threshold, you may still be required to register once you sell services to businesses in other EU countries - specifically to issue reverse-charge invoices and file EC Sales Lists. Being under the threshold at home does not automatically exempt you. Confirm with your tax authority or accountant.

Common questions

What is the reverse charge mechanism?

It shifts VAT reporting from the seller to the buyer. Instead of you collecting VAT and paying it to your tax authority, your business client reports both the output and input VAT in their own return. For you, the result is an invoice with no VAT charged.

What do I put on the invoice for reverse charge to apply?

Your VAT number, the client's valid VAT number, the net amount with no VAT, and an explicit note such as "VAT reverse charged" or a reference to Article 196 of the EU VAT Directive. Verify the client's number in VIES first.

When do I still have to charge VAT to an EU client?

When the client is a private individual (B2C), when they have no valid VAT number, or when the service is a special-rule type such as property work, events, or catering. B2C digital services follow the OSS scheme.

Does reverse charge apply if I'm not VAT-registered myself?

It depends on your national rules. Many freelancers who supply services to EU businesses must register for VAT to issue reverse-charge invoices and file EC Sales Lists, even when domestic turnover is below the threshold. Check locally before assuming you are exempt.

Built for this

Billingz issues reverse-charge invoices with the correct wording and VAT fields - so cross-border invoices come out compliant without you tracking the rules by hand.

See how Billingz handles EU VAT

This guide is general information, not tax advice. VAT treatment depends on your country, your client’s status, and the type of service. Confirm specifics with a qualified accountant.