VAT for Freelancers
with EU Clients
Do you charge VAT to your EU client? It depends on two things: whether you're VAT registered, and whether your client is VAT registered. Here's every scenario explained.
Your situation — four scenarios
Find your exact case below.
You're VAT registered + client is VAT registered
Both parties are in different EU countries and VAT registered. This is the cleanest B2B case — reverse charge applies automatically.
→ Invoice at 0% VAT. Reverse charge applies.You're VAT registered + client is NOT VAT registered
Your EU client is a consumer or non-registered business. Reverse charge cannot apply — they have no VAT number to self-account.
→ Charge your local VAT rateYou're NOT VAT registered + client is VAT registered
If you're below your country's VAT threshold and not registered, you cannot issue reverse charge invoices. You invoice without VAT.
→ No VAT on invoice (not registered)Digital services to EU consumers (any registration)
Selling digital products (templates, courses, software) to EU consumers? The customer's country VAT rate applies. Use the EU OSS scheme.
→ Customer's country VAT via OSSWhat a correct reverse charge invoice looks like
An Estonian freelancer invoicing a German client. Both VAT registered.
- Supplier
- Your Name / Company
VAT: EE123456789 - Customer
- Client GmbH, Germany
VAT: DE987654321 - Description
- Freelance design services
January 2025 - Net amount
- € 3,000.00
- VAT (0% — Reverse Charge)
- € 0.00
- Total due
- € 3,000.00
The customer is liable to account for VAT in Germany at 19%.
Reverse charge invoice checklist
Everything your invoice must include to be legally compliant.
- 🔢 Your full name or company name and address
- 🪪 Your VAT registration number (e.g. EE123456789)
- 🪪 Your client's VAT registration number — verify it on VIES first
- 📅 Invoice date and a unique sequential invoice number
- 📝 Clear description of the services provided and the supply date
- 💶 Net amount — the amount without VAT
- 0️⃣ VAT rate: 0% — and VAT amount: €0.00. Do not add your local rate.
- ⚖️ Legal note: "VAT reverse charge — Article 196, Council Directive 2006/112/EC"
- 📊 Report the supply in your EC Sales List (VIES return) as a service
- 💾 Save the VIES validation screenshot for your records
VAT registration thresholds by country
You must register for VAT once your annual turnover exceeds your country's threshold. Below the threshold, registration is optional.
*Spain requires VAT registration regardless of turnover for business activities. Thresholds are approximate and subject to change — always verify with your local tax authority.
Common freelancer VAT questions
Yes, if they're VAT registered. When a VAT-registered German client requests a VAT-free invoice, they're invoking the reverse charge mechanism. They'll account for 19% German VAT themselves in their VAT return — and immediately claim it back. It's standard B2B procedure across the EU, not an attempt to avoid tax.
Yes — you must report reverse charge service sales in your EC Sales List (ESL), also called the VIES return or Recapitulative Statement. This is a separate report from your regular VAT return, submitted to your local tax authority. It lists each EU client's VAT number and the total value of services supplied. Filing frequency is typically monthly or quarterly depending on your volume and country.
It depends on who's buying. If selling to a VAT-registered EU business — yes, reverse charge applies, invoice at 0%. If selling to EU consumers (B2C), reverse charge does not apply. You must charge VAT at the customer's country rate. To handle this efficiently, register for the EU One Stop Shop (OSS) scheme, which lets you declare and pay consumer VAT across all EU countries via a single return in your home country.
Always verify VAT numbers using the EU VIES system at ec.europa.eu/taxation_customs/vies before issuing a reverse charge invoice. Save a screenshot of the confirmation. If you invoice at 0% based on a valid VIES confirmation and the number later turns out to be fraudulently used, you have a good-faith defence. If you don't check and the number is invalid, you may be liable for the VAT yourself.
For B2B services under the general rule, the place of supply is France (where your client is). Reverse charge means the French client accounts for 20% French VAT. You, as the Estonian supplier, invoice at 0% and report in the Estonian VIES return. You do not need to register in France. Use our Estonia → France guide for the full checklist.
Yes. Reverse charge only applies to cross-border B2B transactions between different EU member states. If you and your client are both in the same country, standard domestic VAT rules apply — you charge your local VAT rate and remit it to your tax authority.