EU freelancer: VAT on cross-border work
If you are VAT registered in one EU country and work for clients in others, the client decides who charges VAT. Here is the rule for business clients, what the invoice needs and when the SME scheme lets you skip VAT.
Key facts
- Business client in another EU country
- You do not charge VAT. The client pays it in their country under the reverse chargeYour Europe: cross-border VAT
- On the invoice
- The words "Reverse charge" and both VAT numbersYour Europe: cross-border VAT
- Before you invoice
- Check the client's VAT number in VIES and keep the resultVIES VAT number check
- Recapitulative statement
- Report reverse charge services to your tax office; the frequency is set nationallyYour Europe: cross-border VAT
- SME scheme, at home
- Exempt below your country's threshold, at most EUR 85,000European Commission: SME scheme
- SME scheme, across borders
- Possible when EU-wide turnover stays under EUR 100,000 this year and lastEuropean Commission: SME scheme
What to charge
Estimate- VAT to charge
- 0.00 EUR
- Invoice total
- 3,000.00 EUR
Write on the invoice: Reverse charge
Rates and notes for services under the general rule. Some services, like events or property, follow other rules.
Clients outside the EU
Services to a business outside the EU are generally outside the scope of EU VAT. Write that on the invoice and keep proof that the client is a business abroad, such as their company registration.
Consumers in other EU countries
Selling services to private people in other EU countries can mean charging their country's VAT, usually through the One Stop Shop. If most of your clients are businesses, this rarely applies.
Questions
What if the client's VAT number fails in VIES?
Then the reverse charge may not apply, and you may have to charge your own VAT. Ask the client to check their registration before you invoice.
Does the SME scheme mean no invoices?
No. You still invoice, without VAT, and you file the reports your country asks for.
Not tax, legal or financial advice. Rules change and your case may differ; check with the authority linked above or an accountant before you act. Terms