Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
The Quick Version
Invoicing EU clients as a freelancer or small business? Here's what matters:
Good News
- ✓ You can invoice without a company
- ✓ No VAT needed for most B2B services
- ✓ Payment via bank transfer or Wise
- ✓ Standard invoice format works
Watch Out For
- ⚠ VAT rules differ by client type
- ⚠ Some clients require specific info
- ⚠ Currency matters for accounting
- ⚠ Keep records for taxes
What Your Invoice Needs
Required Invoice Information
Your Details
- • Full legal name
- • Address
- • Tax ID or business registration (if any)
- • VAT number (if registered)
Client Details
- • Company name
- • Business address
- • VAT number (for reverse charge)
- • Contact person (optional)
Invoice Info
- • Unique invoice number
- • Invoice date
- • Service period or delivery date
- • Payment terms (e.g., Net 30)
Payment Details
- • Amount in agreed currency
- • Description of services
- • VAT amount (or exemption note)
- • Bank/payment details
VAT: When You Charge It
B2B Services (Most Common)
Selling services to an EU business with a VAT number? No VAT charged.
- ✓ Client handles VAT via reverse charge mechanism
- ✓ Add note: "Reverse charge - VAT to be accounted for by the recipient"
- ✓ Include client's VAT number on invoice
B2C or No VAT Number
Client is a consumer or business without VAT number? Rules vary:
- ⚠ You may need to charge VAT at their country's rate
- ⚠ Digital services have specific rules (OSS)
- ⚠ Under €10k threshold? May charge your country's VAT
- ⚠ Consider Merchant of Record services (Paddle, etc.)
Not VAT Registered?
If you're not VAT registered in any country, you invoice without VAT. Just be aware of registration thresholds (€10k for EU B2C digital sales). Most freelancers doing B2B services don't need VAT registration.
Payment Options
Bank Transfer (SEPA)
EU-to-EU bank transfers are cheap and fast (1-2 days). Get a EUR account with Wise or Revolut.
Include: IBAN, BIC/SWIFT, bank name
Wise Business
Get local EUR account details. Clients pay like a local transfer. Low fees for currency conversion.
Best for: Multi-currency freelancers
PayPal/Payoneer
Easy but higher fees. Some clients prefer it. Good backup option if bank transfer is slow.
Watch: 2-4% fees on transactions
Sample Invoice Notes
Copy-Paste Invoice Notes
For B2B with VAT Number (Reverse Charge)
"Reverse charge - VAT to be accounted for by the recipient pursuant to Article 196 of Council Directive 2006/112/EC"
For Non-VAT Registered Freelancer
"Not registered for VAT" or "VAT not applicable"
Payment Terms
"Payment due within 30 days of invoice date. Bank transfer to the account details provided."
Next Steps After Your First Invoice
Keep Records
Save all invoices and payment confirmations. You'll need them for your tax return. A simple folder structure by year works fine for now.
Track Your Income
Note when payments arrive. Different currencies? Track both the foreign amount and converted amount for your local tax reporting.
Consider an EU Company
Once you're regularly invoicing EU clients, an Estonian company through Xolo Go simplifies everything: professional invoicing, proper accounting, and no personal liability.
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
