What every entrepreneur needs to know about foreign customers and invoicing in 2025
More and more entrepreneurs are supplying services or products abroad. But what exactly about VAT? Do you have to charge VAT to a customer in Spain? And what if you work with a Spanish SL that invoices to Dutch customers?
Doing business within the EU: 0% VAT or not? When supplying goods to an entrepreneur within the EU, you may apply the 0% rate, provided you meet a number of conditions:
- Your customer is an entrepreneur with a valid VAT number in another EU country
- The goods are actually transported to another EU country
- You keep transport and invoice documents as proof
Different rules apply to services. Many business services to an EU entrepreneur fall under the VAT reverse charge mechanism. That means: you charge 0% VAT and the customer pays the VAT in their home country.
Private individuals abroad: OSS schemeInvoicing to private individuals in other EU countries, e.g. via a webshop? If so, you have to charge the VAT of the customer's country from a certain turnover threshold. You simplify this via the One Stop Shop (OSS) scheme.
What should be on the invoice? A correct invoice contains:
- Your VAT number and that of your customer (for business supplies)
- Reference to 'reverse charge VAT' or 'intra-Community supply' if applicable
- Delivery or performance date
Beware: an incorrect VAT listing can lead to retrospective assessments and fines. Useful tip: always check your customer's foreign VAT number via VIES.
📞 Contact us for a no-obligation consultation by phone, email or via our contact form.
Together, we make sure your business is ready for the future!
