Guide4 min read· 15 January 2026

What is VAT? A Complete Guide for EU Freelancers

VAT (Value Added Tax) is a consumption tax applied to most goods and services in the European Union. As a freelancer operating in the EU, understanding VAT is essential — both for compliance and for pricing your services correctly.

VAT is a consumption tax that forms a core part of the EU's tax system. Unlike income tax, VAT is collected at each stage of the supply chain and ultimately paid by the end consumer.

How VAT Works for Freelancers

As a freelancer, you act as a tax collector on behalf of the government. When you charge VAT on your invoices, you collect it from your clients and periodically remit it to your tax authority — minus any VAT you've paid on your own business expenses (input VAT).

Registration Thresholds

VAT registration is mandatory once you exceed your country's annual turnover threshold. These vary across the EU:

Germany: €22,000
France: €36,800 (services)
Netherlands: No threshold (mandatory registration for most businesses)
Spain: No threshold
Ireland: €37,500 (services)

Cross-Border Services

The rules for cross-border VAT within the EU depend on whether your client is a business (B2B) or consumer (B2C):

B2B services: Apply the reverse charge mechanism. You issue the invoice without VAT and note "VAT reverse charge applies."

B2C services: Generally charge VAT at the rate of your own country, unless you exceed the EU-wide distance selling threshold of €10,000.

Frequently Asked Questions

When do I need to register for VAT as a freelancer?

Each EU country has its own VAT registration threshold. In most countries, you must register once your annual turnover exceeds a set amount (e.g., €35,000 in France, €22,000 in Germany). Once registered, you must charge VAT on your invoices and submit regular VAT returns.

Do I charge VAT on invoices to clients in other EU countries?

For B2B services to VAT-registered clients in other EU countries, you generally apply the reverse charge mechanism — meaning you don't charge VAT on the invoice, and the client accounts for it in their own country. For B2C clients (individuals), different rules apply.

What VAT rate should I use?

You charge VAT at the rate of the country where your service is supplied. For most freelance services, this is the standard rate of your own country if you're below the distance selling threshold. Use our VAT calculator to quickly find rates for all 27 EU member states.

Related Tools

Generator

Free Invoice Generator

Create professional invoices in seconds — free PDF download

Open free tool →

Generator

EU Freelance Contract Generator

Create a legally sound freelance contract for EU clients

Open free tool →

3 MIN READ·GuideFeb 2026

EU VAT Rates by Country: Complete 2026 Guide

The EU has 27 member states and 27 different VAT rate structures. Charge the wrong rate and you face a corrected invoice, a VAT audit, or worse — a fine for under-declaring output tax. This guide gives you every rate, every country, and the context you need to apply them correctly.

Read guide →

3 MIN READ·GuideFeb 2026

EU VAT Registration Thresholds by Country (2026)

VAT registration thresholds determine when a business must register with its national tax authority and start charging VAT. Thresholds vary significantly across the EU — from zero in Spain and the Netherlands to over €85,000 in Italy. Knowing your threshold is the difference between a clean compliance record and a backdated VAT bill you didn't see coming.

Read guide →

3 MIN READ·GuideJul 2026

France VAT Registration Threshold 2026: Micro-Entrepreneur Limits Explained

France's VAT registration threshold isn't a single number — it's a dual system split between services and goods, layered on top of the micro-entrepreneur franchise en base de TVA exemption that most French freelancers actually operate under. Knowing which limit applies to you, and what happens the month you cross it, is the difference between a clean registration and months of backdated VAT.

Read guide →