EU Cross-Border Invoicing Rules
Selling across EU borders adds a layer of VAT rules on top of your normal invoicing. The reverse-charge mechanism, VAT number validation, and country-by-country e-invoicing mandates all matter. This guide covers the essentials for invoicing B2B and B2C customers in other EU member states.
The Reverse Charge for B2B Sales
When you sell goods or most services to a VAT-registered business in another EU country, you generally do not charge VAT. Instead, the customer accounts for it under the reverse-charge mechanism. Your invoice must state that reverse charge applies (for example, 'Reverse charge — VAT to be accounted for by the recipient') and show both your VAT number and the customer's VAT number.
Reverse charge only works if the customer genuinely is a taxable business with a valid VAT number. Always validate the number through the EU's VIES system before invoicing, and keep a record of the check. If the number is invalid, treat the sale as B2C and apply the normal VAT rules.
B2C Sales and the OSS Scheme
Sales to private consumers in other EU countries are generally taxed where the consumer is located once you exceed the EU-wide distance-selling threshold of €10,000 per year. Below that threshold, you may charge your home country's VAT; above it, you must charge the destination country's rate.
The One-Stop Shop (OSS) lets you declare VAT for all EU consumer sales through a single return in your home country instead of registering in each one. If you sell digital services, courses, or shipped goods to EU consumers, registering for OSS early saves enormous admin.
What Cross-Border Invoices Must Include
EU invoices need the standard fields — sequential invoice number, dates, both parties' names, addresses and VAT numbers, line-item descriptions, quantities, net amounts, VAT rates and amounts, and gross totals — plus the reverse-charge statement where applicable. Invoices for intra-EU supplies of goods also feed into your recapitulative statement (EC Sales List) in most countries.
Issue invoices promptly: EU rules generally require an invoice for cross-border B2B supplies by the 15th day of the month following the supply. Late invoicing can complicate your customer's VAT recovery and your own reporting.
E-Invoicing Mandates Are Spreading
The EU's ViDA (VAT in the Digital Age) reforms are pushing structured e-invoicing for cross-border transactions, and several member states already mandate e-invoices domestically — Italy requires them broadly, and France, Germany, Poland, and others are rolling out obligations through 2026 and beyond. A PDF emailed as an attachment is not a true e-invoice under these rules; the invoice must be machine-readable structured data.
If you trade with customers in mandate countries, use invoicing software that can generate compliant e-invoices (formats like Factur-X, ZUGFeRD, or Peppol BIS). Check each customer's country requirements before your first invoice there.
Frequently asked questions
How do I check a customer's EU VAT number?
Use the European Commission's VIES VAT number validation tool online. Enter the country code and number, save the confirmation result with the date, and re-check periodically for ongoing customers.
Do I need to invoice in the customer's currency or language?
No EU-wide rule requires it, but VAT amounts may need to be shown in your home currency for your return, and some countries require the VAT amount in the national currency. Agree currency with the customer upfront and apply a documented exchange rate.
What is the EC Sales List?
A periodic report (usually monthly or quarterly) listing your intra-EU supplies of goods and certain services by customer VAT number. Most member states require it alongside your VAT return when you make zero-rated cross-border B2B supplies.
More guides
Create your document in seconds
Free forever. No signup, no watermarks — your data never leaves your browser.