Sending an invoice to someone in another country is where VAT rules become genuinely complicated — and where the B2B vs. B2C distinction actually matters. The answer depends on three things: where your buyer is, whether they are a business or a consumer, and whether you are both inside the EU.
EU B2B: reverse charge (you charge 0%)
If you are VAT-registered and you invoice a business in another EU country, you generally do not charge VAT. The responsibility to account for VAT shifts to your buyer under the reverse charge mechanism. Your invoice shows:
- Your VAT number (e.g. DE… or EL… or AT…)
- Your client’s VAT number
- Net amount, zero VAT
- The note: “Reverse charge — VAT to be accounted for by the recipient”
Your buyer then declares the VAT in their own country at their own rate. You don’t collect it, you don’t remit it. This works because both parties are VAT-registered and the transaction is traceable.
Requirement: You must verify your client’s VAT number before applying reverse charge. Use the EU VIES system to confirm it is valid and active. If the number is invalid or the client turns out not to be VAT-registered, you may be liable for the VAT yourself.
EU B2C: it depends on volume
Invoicing consumers (private individuals) in other EU countries follows different rules depending on how much you sell to them.
Below the EU-wide €10,000 threshold (all EU B2C combined): You can apply your own country’s VAT rate, the same as if you were selling domestically. This is the simplest path for small sellers.
Above €10,000: You must apply the VAT rate of the country where your consumer lives — not your own rate. This is the distance selling rule, designed to stop businesses routing through low-VAT countries.
To handle this, you need to register for the One Stop Shop (OSS) — a single EU registration that lets you file VAT for all EU consumer sales in one place, rather than registering separately in every buyer’s country. OSS registration is done through your national tax authority’s portal and requires quarterly returns. Billino applies the correct buyer-country rates on your invoices automatically once you cross the threshold, but OSS registration and the quarterly filings themselves are still done separately outside Billino.
Outside the EU: generally no VAT
When your buyer is located outside the EU (UK, US, Switzerland, etc.), you generally do not charge VAT at all. For services, the supply is considered to take place where the recipient is, which puts it outside the EU VAT system. For physical goods, they are treated as exports and are zero-rated.
B2B outside the EU: No EU VAT. Your invoice is net only. Keep documentation that your buyer is located outside the EU.
B2C outside the EU: Same result — generally no EU VAT. If you sell physical goods, export documentation is required.
Note: the destination country may have its own import taxes or local VAT obligations. If you sell significant volumes to a specific non-EU country, check whether that country requires you to register locally. For digital services to non-EU consumers, rules vary by country.
The UK specifically
Post-Brexit, the UK is treated like a non-EU country for VAT purposes. B2B sales to UK-registered businesses: no EU VAT, supply is outside EU scope. B2C digital services to UK consumers: the UK has its own VAT system and you may need to register with HMRC if you exceed the UK’s registration threshold (currently £90,000 for goods; digital services have their own rules).
Summary table
| Buyer location | Buyer type | What you charge |
|---|---|---|
| Same country | Business or consumer | Normal rate for your product |
| Other EU country | Business (VAT-registered) | 0% (reverse charge) |
| Other EU country | Consumer (below €10k threshold) | Your country’s rate |
| Other EU country | Consumer (above €10k threshold) | Buyer’s country rate (via OSS) |
| Outside EU | Business | No EU VAT |
| Outside EU | Consumer | No EU VAT |
In Billino
This is where Billino removes the most complexity. You don’t configure any of these rules yourself — you just tell Billino who you’re invoicing: their country and whether they are a business or an individual. Billino’s server classifies the transaction automatically and applies the correct treatment:
- Same country → domestic rate for your item’s category
- Different EU country + business → reverse charge, 0% tax, the correct legal clause added to the invoice automatically
- Different EU country + individual → Billino tracks your cumulative cross-EU B2C revenue for the year; below €10,000 it applies your domestic rate, above it switches to the buyer’s country rate — including the correct OSS notice on the invoice
- Outside the EU → 0% tax, export clause added automatically
None of this requires you to look up rules, set rates to zero manually, or remember to add legal notes. The recipient’s location and type is enough — Billino handles the rest.
For more on when you can issue invoices with no tax at all, see our guide on omitting VAT.
