Tax & e-invoicing guide

Understand EU VAT rules and e-invoicing obligations for freelancers — in plain language, with examples.

How VAT works for EU freelancers

Your VAT treatment depends on three things: who your client is (business or private person), where they are located, and what you're selling (general services or digital / TBE services). Here are the five scenarios Clozo handles automatically.

1 · Domestic client (same country)

Applies when: Your client is in the same country as you.
VAT rate: Your domestic VAT rate
Example: A Berlin-based designer invoices a Munich client → 19% DE VAT.
Legal basis: Articles 44 & 45, Directive 2006/112/EC

2 · EU B2B — reverse charge

Applies when: Your client is a VAT-registered business in another EU Member State.
VAT rate: 0% — your client accounts for VAT in their own country
Example: A Berlin-based designer invoices an Amsterdam company with a valid NL VAT number → 0% + "Reverse charge" notice on the invoice.
Legal basis: Article 196, Directive 2006/112/EC (place of supply: Article 44)

3 · EU B2C — general services

Applies when: Your client is a private person or a non-VAT business in another EU country, and you provide general services (design, consulting, development, copywriting, coaching, photography, translation, etc.).
VAT rate: Your own domestic VAT rate (supplier country)
Example: A Berlin-based designer creates a logo for an Amsterdam individual → 19% DE VAT.
Legal basis: Article 45, Directive 2006/112/EC

4 · EU B2C — digital / TBE services

Applies when: You sell Telecommunications, Broadcasting or Electronically supplied services (SaaS subscriptions, pre-recorded online courses, e-books, software downloads, streaming content, digital templates) to private persons in another EU country.
VAT rate: Your client's country VAT rate (destination)
Example: A Berlin-based course creator sells access to an online course to a Dutch individual → 21% NL VAT (unless you're under the €10k threshold).
Legal basis: Articles 58 & 59c, Directive 2006/112/EC

5 · Non-EU client

Applies when: Your client is outside the EU (United States, United Kingdom, Switzerland, etc.).
VAT rate: 0% — outside EU VAT scope
Example: A Berlin-based consultant invoices a New York client → 0% + "Services supplied outside the EU" notice.
Legal basis: Articles 44 & 59, Directive 2006/112/EC

Small-business VAT exemption schemes

Most EU countries let you skip charging VAT when your annual turnover is below a national threshold. Your invoices display the legal reference automatically once you pick your regime in Settings.

Country	Scheme	Threshold (2025-2026)	Legal reference
Germany	Kleinunternehmer	€25,000 previous year AND €100,000 current year	§19 UStG
Netherlands	KOR (Kleineondernemersregeling)	€20,000	art. 25 Wet op de omzetbelasting 1968
France	Franchise en base	€37,500 services / €85,000 goods	art. 293 B CGI
Austria	Kleinunternehmer	€55,000	§6 Abs. 1 Z 27 UStG
Spain	Régimen de franquicia	€85,000	Ley 37/1992 (new scheme from 2025-01-01)
Italy	Regime forfettario	€85,000	Legge 190/2014 art. 1 commi 54-89
Poland	Zwolnienie podmiotowe	PLN 200,000	art. 113 ust. 1 ustawy o VAT

EU cross-border SME scheme (from 2025-01-01)

Directive (EU) 2020/285 introduced an EU-wide small-business scheme. If your total EU turnover is below €100,000 and you are registered in your home country, you can apply for an EX identifier and remain VAT-exempt on cross-border sales too. Clozo will support this in a later release.

E-invoicing mandates by country

The EU is phasing in mandatory structured (XML-based) invoices for B2B transactions. Clozo generates every required format automatically based on your client's country — you don't need to configure anything.

Legend:In forceUpcomingVoluntaryNo mandate

Country	Status	Details	Format
Germany	In force (reception), upcoming (issuance)	Reception mandatory since 2025-01-01. Issuance phased: turnover > €800k from 2027-01-01, all domestic B2B from 2028-01-01. Kleinunternehmer are exempt from issuing but must still accept.	XRechnung, ZUGFeRD 2.1 (Factur-X)
Belgium	In force	All B2B transactions require structured e-invoices since 2026-01-01 (penalty-free tolerance during Q1 2026).	Peppol BIS Billing 3.0
France	Upcoming	Large businesses from 2026-09-01; SMEs from 2027-09-01. Transit via a certified Dematerialization Platform (PDP) or Chorus Pro.	Factur-X (PDF/A-3 + embedded XML)
Italy	In force	B2B mandatory since 2019; extended to regime forfettario from 2024-01-01. All invoices transit the SdI (Sistema di Interscambio).	FatturaPA
Spain	Upcoming	Royal Decree adopted 2026-03. Phased rollout: businesses with turnover > €8 million from 2027-10-01, SMEs from ~2028. VeriFactu (anti-fraud certified billing) is a separate obligation already in force for some taxpayers.	FacturaE + VeriFactu
Poland	Upcoming	KSeF (national e-invoice system). Large taxpayers (> PLN 200m) from 2026-02-01, all VAT-registered from 2026-04-01, micro-entrepreneurs from 2027-01-01. Penalties waived until 2026-12-31.	KSeF XML
Austria	B2G mandatory, B2B voluntary	B2G invoices since 2014; B2B remains voluntary. Peppol is the preferred transport.	ebInterface 6.1, Peppol BIS
Netherlands	Voluntary	No national mandate. Peppol BIS is widely used in B2G and by large B2B buyers; SimplerInvoicing ecosystem.	Peppol UBL, ZUGFeRD (cross-border)
Other EU	Mostly voluntary	Check your national tax authority for current rules. Peppol BIS Billing 3.0 is the de-facto cross-border standard.	Peppol BIS Billing 3.0

EU ViDA (VAT in the Digital Age) Directive, adopted 2025-03, will make structured e-invoicing mandatory for intra-Community B2B from 2030.

How to submit FatturaPA to SdI

Italy's Sistema di Interscambio (SdI) is the government clearing-house for all B2B e-invoices. Clozo generates the compliant XML — you transmit it.

Clozo does NOT transmit your FatturaPA to SdI automatically. You must submit it yourself via one of the channels below within 12 days of invoice issuance. SdI may reject malformed invoices (Notifica di Scarto) — in that case you have 5 days to fix and resubmit.

1
Generate the XML
Open the signed proposal and click the e-invoice menu → 'FatturaPA XML'. Clozo produces an unsigned XML file named per AdE naming rule (IT{PartitaIVA}_{progressivo}.xml) with your RF19 regime code, the N2.2 nature code on every line, and the statutory L.190/2014 disclaimer in the Causale field. Digital signature (CAdES/XAdES) is NOT required for B2B per AdE provvedimento 30-04-2018.
2
Submit to SdI via one of three channels
All three channels are official Agenzia Entrate endpoints. For freelancers with low invoice volume, the web portal or PEC is usually simplest.
AdE web portal
Log in to 'Fatture e Corrispettivi' on ivaservizi.agenziaentrate.gov.it (SPID/CIE/CNS auth) and upload the XML. Free.
PEC email
Attach the XML to a PEC message sent to sdi01@pec.fatturapa.it
FatturAE app
Free AdE mobile/desktop app. Upload and sign the XML from your SPID.
3
Monitor SdI receipts in Agenzia Entrate
SdI sends back notifications within 5 days. Check the 'Fatture e Corrispettivi' portal or your PEC inbox for these status updates:
- RC — Ricevuta di Consegna — delivered to the client successfully. Invoice is legally final.
- NS — Notifica di Scarto — invoice rejected (validation error). Fix the XML and resubmit within 5 days.
- MC — Mancata Consegna — SdI couldn't reach the recipient. Send the XML to the client yourself (email) and they can download it from the AdE portal.

For failed (NS) or undelivered (MC) invoices, AdE's full reference is at agenziaentrate.gov.it → Fatturazione elettronica → FAQ.

What Clozo puts on your invoice (Art. 226)

Article 226 of Directive 2006/112/EC lists every mandatory field on an EU VAT invoice. Clozo fills them all automatically from your profile and the proposal data.

✓Sequential invoice number — Art. 226(2)
✓Date of issue — Art. 226(1)
✓Supplier VAT number — Art. 226(3)
✓Client VAT number (when reverse charge applies) — Art. 226(4)
✓Full name and address of both parties — Art. 226(5)
✓Description and quantity of services — Art. 226(6)
✓Date of supply (Leistungsdatum) — Art. 226(7) — shown when it differs from the issue date
✓Taxable amount per rate, VAT rate, VAT amount — Art. 226(8-10)
✓Exemption or zero-rate reason — Art. 226(11)
✓Literal "Reverse charge" notice when applicable — Art. 226(11a)
✓Reference to deposit invoices on the final invoice (Schlussrechnung) — Art. 220(4) + 226(14)

VAT Calculator

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EU VAT Rates 2025-2026

Rates as of 2026-04-20 — subject to change. Verify with your national tax authority before filing.

Country	Country code	Standard rate
Austria	AT	20%
Belgium	BE	21%
Bulgaria	BG	20%
Croatia	HR	25%
Cyprus	CY	19%
Czech Republic	CZ	21%
Denmark	DK	25%
Estonia	EE	24%
Finland	FI	25.5%
France	FR	20%
Germany	DE	19%
Greece (EL)	GR	24%
Hungary	HU	27%
Ireland	IE	23%
Italy	IT	22%
Latvia	LV	21%
Lithuania	LT	21%
Luxembourg	LU	17%
Malta	MT	18%
Netherlands	NL	21%
Poland	PL	23%
Portugal	PT	23%
Romania	RO	21%
Slovakia	SK	23%
Slovenia	SI	22%
Spain	ES	21%
Sweden	SE	25%

Glossary

VAT: Value Added Tax. Consumption tax applied to goods and services across the EU. Collected by businesses and remitted to the national tax authority.
B2B: Business-to-business. Your client is a VAT-registered business (has a VAT identification number).
B2C: Business-to-consumer. Your client is a private individual or a business that is not VAT-registered.
Place of supply: The country whose VAT rules apply to a transaction. For services: usually where the supplier is established (B2C general) or where the client is (B2B under Article 44, or TBE under Article 58).
Reverse charge: Mechanism where the customer (not the supplier) accounts for VAT in their own country. Applies to cross-border B2B services under Article 196.
TBE services: Telecommunications, Broadcasting and Electronically supplied services: SaaS subscriptions, pre-recorded online courses, e-books, software downloads, streaming content, digital templates, ringtones. Governed by Article 58 for B2C place of supply.
OSS (One Stop Shop): EU portal for declaring cross-border B2C VAT in a single quarterly return instead of registering in every destination country.
IOSS (Import OSS): Same as OSS but for low-value imports from outside the EU (goods below €150).
VIES: VAT Information Exchange System. EU database that validates VAT numbers across Member States. Clozo checks your client's VAT number here before applying reverse charge.
Peppol: Pan-European Public Procurement On-Line. Network + standards for exchanging structured electronic invoices across EU (and beyond).

Sources

All references below are primary sources we consulted when building Clozo's VAT engine and this guide.

This guide is provided for general informational purposes only and does not constitute tax, legal or professional advice. The information reflects our understanding of EU and national VAT rules as of 2026-04-20 and may change without notice. VAT rates, thresholds and e-invoicing obligations vary by Member State and individual circumstances. Clozo accepts no liability for decisions made in reliance on this content. Before acting on any VAT matter, consult a qualified tax advisor licensed in your jurisdiction. The calculator results are estimates — final VAT treatment is determined by the national tax authority of the place of supply.