Invoicing a business in another EU country: the reverse charge and why you must check VIES
When you invoice a business in another EU country for services, you usually charge no VAT — the customer accounts for it under the reverse charge. But that only works if their VAT number is valid in VIES, and you still have to report the sale.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Your first invoice to a client in another EU country often surprises freelancers: you charge no VAT at all. That's correct — but only if you do one check first, and only if you still file one report afterwards.
The reverse charge: the customer accounts for the VAT
For most B2B services, the place of taxation is where the customer is established. So you, the supplier, don't charge VAT. Instead the customer accounts for it themselves, at their own country's rate, under the reverse charge.
Your invoice should state that the reverse charge applies (and show both parties' VAT numbers). It's symmetric: when you buy services from a business in another EU country, you self-account for the VAT at your own rate.
VIES: check before you zero-rate
The reverse charge only works if your customer really is a VAT-registered business in another member state. You confirm that through VIES — the EU's VAT Information Exchange System, which validates a VAT number live against national databases.
If the customer has no valid EU VAT number, you generally must treat the sale like a domestic one and charge VAT. Checking VIES — and keeping a record of the check — is cheap insurance against a wrong zero-rating you'd have to fund yourself later.
You still have to report it
No VAT charged doesn't mean nothing to file. Intra-EU B2B supplies go on a recapitulative statement (the EC Sales List), listing each customer's VAT number and the amounts. Note the horizon: under the EU's ViDA reforms, from 1 July 2030 these periodic lists are replaced by near-real-time digital reporting based on structured e-invoices — so this admin is set to change.
General information about EU cross-border B2B VAT, current as of the review date above, and not tax advice. Confirm your obligations with your national tax authority or a qualified adviser.
Frequently asked questions
Do I charge VAT when invoicing a business in another EU country?
Usually no. For most B2B services the place of taxation is the customer's country, so you invoice without VAT and the customer accounts for it under the reverse charge at their own rate. Your invoice should note that the reverse charge applies. This only holds if the customer is a business with a valid EU VAT number.
Why do I need to check the customer's VAT number in VIES?
Because the reverse charge depends on the customer being a VAT-registered business in another member state. You validate their number through VIES, the EU's VAT number checking system. If they have no valid EU VAT number, you generally must charge VAT as if it were a domestic sale — so checking VIES before invoicing protects you.