Invoicing and VAT for digital services across borders
How VAT works for websites, software and digital services sold across borders, what an invoice must show, and the schemes that simplify it.
The short answer
Selling websites, software, hosting and digital services across borders means three VAT situations. Business customers in other EU member states: the place of supply is generally where the customer is established, the reverse charge applies, and your invoice shows no VAT, states that the reverse charge applies, and carries both VAT numbers with the customer’s verified. Consumers in other EU member states: electronically supplied services are taxed where the customer is, at that country’s rate, and the union one-stop-shop scheme lets you declare and pay through a single registration rather than registering in each country, with a small-business threshold below which domestic rules may continue to apply. Customers outside the EU: business supplies are generally outside the scope of EU VAT, while consumer supplies depend on the destination country’s rules, several of which have their own digital services registrations. Invoices have required content in all cases, with extra references for cross-border treatment. Configure this in your invoicing system rather than handling it by hand, and have your accountant confirm the treatment for your specific services.
The three situations
| Customer | Treatment | Invoice shows |
|---|---|---|
| Business in your own country | Domestic VAT at the applicable rate | VAT amount and rate |
| Business in another EU member state | Reverse charge; customer accounts for VAT | No VAT, both VAT numbers, a statement that the reverse charge applies |
| Consumer in your own country | Domestic VAT | VAT amount and rate |
| Consumer in another EU member state | VAT of the customer’s country; report via the one-stop shop, subject to the threshold | VAT at the customer’s country rate; evidence of location kept |
| Business outside the EU | Generally outside the scope of EU VAT | No VAT, with a note on the treatment |
| Consumer outside the EU | Depends on the destination country’s rules | Per that country; check before selling regularly |
Getting it right operationally
- Classify your services with your accountant: which are electronically supplied, which are consultancy or bespoke work.
- Capture customer status and country at the point of sale, with a VAT number for business customers.
- Verify VAT numbers through the official validation service and keep the confirmation.
- Keep location evidence for consumer sales, as the rules require more than one non-contradictory piece.
- Configure your invoicing system to apply the right treatment and print the required statements.
- Register for the one-stop shop if you exceed the threshold for intra-union consumer supplies.
- File and pay through the scheme on its cycle.
- Keep the records for the statutory period, which is longer for the scheme in some cases.
- Review annually with your accountant, especially if you enter new markets.
What an invoice must show
The date, a sequential number, your full name, address and VAT number, the customer’s name and address, and their VAT number for reverse charge supplies, a description of the services, the quantity and scope, the date of supply, the amount excluding VAT per rate, the VAT rate and amount, the total, and where relevant a statement of the treatment such as reverse charge or the exemption relied on. Credit notes reference the original invoice. Electronic invoices must be readable and their authenticity and integrity assured, and both invoices and supporting records are kept for the statutory retention period.
What this means for you
For EU business customers apply the reverse charge with verified VAT numbers and the required statement; for EU consumers charge the customer’s country rate and use the one-stop shop above the threshold; for non-EU customers check the destination rules. Capture status and location at the point of sale, verify numbers, configure the invoicing system, keep the evidence, and review annually with your accountant. This is general information rather than tax advice; your accountant confirms your specific position.
Frequently asked questions
Do we charge VAT to a business client in another EU country?
For most business-to-business services the place of supply is where the customer is established, and the customer accounts for the VAT under the reverse charge. Your invoice shows no VAT, states that the reverse charge applies, and carries both your VAT number and a valid customer VAT number that you have verified. Verification matters: if the number is invalid, the treatment may not hold and you can end up owing the VAT.
What about consumers in other EU countries?
Electronically supplied services to consumers are taxed in the customer's country at that country's rate. Rather than registering in each one, the union one-stop-shop scheme lets you declare and pay through a single registration in your own member state. There is a small-business threshold for intra-union supplies below which you may continue to apply domestic rules, which many small suppliers fall under. Confirm your position with your accountant.
And customers outside the EU?
Services to business customers outside the EU are generally outside the scope of EU VAT, with the invoice noting that. Services to consumers outside the EU depend on the type of service and the destination country's own rules, some of which require registration for digital services. Check per country before selling regularly into one, because several have their own digital services thresholds.
Sources
- European Commission: VAT on e-Commerce (accessed 2026-09-12)
- Belastingdienst: Btw voor ondernemers (accessed 2026-09-12)