Your first client in another EU country raises a handful of questions: do I charge VAT, whose VAT, what goes on the invoice, and what do I report? Here is the order in which to answer them. This is a general EU-level guide for service freelancers; your country's rules on top of it are marked check locally.
Step 1: Is the client a business or a consumer?
Almost everything depends on this. A client is treated as a business (B2B) when they act as a taxable person, which in practice you evidence with a valid VAT identification number. Check it with the format checker and then in VIES, and keep the result.
Step 2: Where is the service taxed?
| Situation | General rule (VAT Directive) | Usually means |
|---|---|---|
| B2B, client in another EU country | Customer's country (Art. 44) + customer pays VAT (Art. 196) | No VAT on your invoice, "Reverse charge" |
| B2C, most services | Supplier's country (Art. 45) | Your own country's VAT (if registered) |
| B2C, telecom, broadcasting, electronically supplied services | Customer's country (Art. 58), unless you stay under the EUR 10,000 EU-wide threshold (Art. 59c) | Customer's country VAT, usually declared via OSS |
| Client outside the EU (B2B) | Customer's location (Art. 44) | No EU VAT; client's country may have its own rules |
Special rules override these for property-related services, events, catering, passenger transport and some others. "Electronically supplied services" has a specific, fairly narrow meaning (automated delivery over the internet with minimal human intervention, e.g. downloads, SaaS); custom work delivered by email is generally not one. More detail: OSS vs reverse charge.
Step 3: Decide the VAT treatment
- EU B2B: net amount, no VAT, mention "Reverse charge" and both VAT numbers. Use the wording generator.
- EU B2C, normal service: charge your own VAT rate as for a domestic client.
- EU B2C, digital services above the threshold: charge the client's country rate (see the VAT rate table) and declare it through the OSS.
- You are VAT-exempt as a small business: print the exemption wording your country requires. For EU B2B clients you may still need a VAT number. See the SME scheme guide.
Step 4: Fill in the invoice
A full VAT invoice needs the items in Article 226 of the Directive: issue date, a unique sequential number, your VAT number, the client's VAT number (for reverse charge), full names and addresses, description and extent of the service, date of supply if different, net amount, VAT rate and amount (or the reverse-charge mention). The full list is in our EU invoice requirements checklist. Need a numbering scheme? Use the invoice number generator.
For reverse-charge services, issue the invoice by the 15th of the month after the month the service was performed (Art. 222).
Want a printable A4 invoice that fills these fields from your client list?Freelancer Money OS – EU Edition is a €19 spreadsheet that does this for you (Excel + Google Sheets).
Step 5: Currency, language and payment
- Currency: any currency is allowed, but VAT amounts shown must also be given in your national currency (Art. 230). Euro-area freelancers invoicing in euro have nothing extra to do.
- Language: national rules differ on accepted invoice languages; check locally. Adding the client's language for the reverse-charge mention is a courtesy that helps their bookkeeping.
- Payment: include your IBAN and BIC. SEPA transfers in euro across the EU cost the same as domestic euro transfers under EU rules, so ask clients to pay by SEPA where possible.
Step 6: Report it
B2B reverse-charge services go in your VAT return (separate box) and the recapitulative statement / EC Sales List (Art. 262). B2C digital services declared via the OSS go in your quarterly OSS return. Income tax applies to the income as usual in your country of tax residence. Deadlines and forms: check locally.