Taxes
International Invoicing: The Complete Guide for International Customers
Have customers abroad? Learn which special rules apply for invoices to EU countries and third countries.
Globalization doesn't stop at freelancers. There's a lot to consider when invoicing abroad.
The Three Scenarios
Scenario 1: B2B in the EU
For business with EU companies, the reverse charge procedure applies:
- You issue the invoice without VAT
- The customer remits the tax in their country
- You need the customer's VAT ID
Mandatory note on invoice: "Tax liability of service recipient (Reverse Charge)"
Scenario 2: B2C in the EU
For private individuals in the EU:
- Calculate German VAT (19% or 7%)
- From certain thresholds: observe OSS procedure
Scenario 3: Third Countries
For countries outside the EU (USA, Switzerland, UK, etc.):
- No German VAT
- Note: "Non-taxable service according to § 3a UStG"
Mandatory Information on International Invoices
- Your complete contact details
- Customer data including country
- VAT ID of both parties (for B2B EU)
- Reference to tax exemption
- Service description (ideally bilingual)
Currency and Payment
- Euro or foreign currency possible
- For foreign currency: state exchange rate
- IBAN and BIC for international transfers
- Plan longer payment terms
Create international invoices easily? With Clever Invoice you switch between languages and currencies with one click.
Frequently asked questions
Must I always apply reverse charge for EU transactions?
Only for B2B transactions with companies that have a valid VAT ID. For private individuals you calculate German VAT.
Do I need a VAT ID for invoices to Switzerland?
No, Switzerland is not an EU country. You issue the invoice without VAT with a reference to non-taxable service.