When you sell to a buyer in the same country — whether that’s a business (B2B) or a private individual (B2C) — the VAT rate you apply depends almost entirely on what you are selling, not on who is buying it.
This surprises many freelancers and small business owners. They assume that invoicing a company (B2B) means different tax rules than invoicing a private person (B2C). For domestic transactions, that is usually not the case.
The rate follows the product, not the buyer
Each country defines reduced VAT categories in its tax law. A book is taxed at the reduced book rate whether you sell it to a consumer at a market or to a company for its library. Catering services carry whatever rate the law assigns to catering, regardless of whether the event is corporate or private.
Some examples across three countries:
| What you’re selling | Austria | Germany | Greece |
|---|---|---|---|
| IT consulting / software | 20% | 19% | 24% |
| Accommodation | 13% | 7% | 13% |
| Basic food | 10% | 7% | 13% |
| Books | 10% | 7% | 6% |
| Medicine | 10% | 7% | 6% |
| Restaurant meals | 10% (food) / 20% (alcohol) | 7% (food) / 19% (alcohol) | 13% |
The pattern is consistent: reduced rates apply to essentials and culturally valued goods. Standard rates apply to everything else. B2B or B2C doesn’t change this within one country.
The one area where B2B and B2C can differ domestically
In some countries, certain professional services between two VAT-registered businesses can qualify for a domestic reverse charge — a mechanism where the buyer, not the seller, accounts for the VAT. This typically applies to:
- Construction and building services
- Sales of certain electronic goods in bulk (anti-fraud measure)
- Transfer of emission allowances
Domestic reverse charge is sector-specific and varies heavily by country. If you operate in construction or a sector with known reverse-charge rules, check with your national tax authority or an accountant — it applies narrowly and is not the default.
For most freelancers and service businesses, domestic reverse charge is not relevant. You charge VAT at the standard or reduced rate that corresponds to your service, to all domestic clients.
How to find the right rate for what you sell
The cleanest source is always your national tax authority’s website. They publish category lists with applicable rates:
- Austria: bmf.gv.at — search for “Umsatzsteuersätze”
- Germany: bundesfinanzministerium.de — “Umsatzsteuer” section
- Greece: aade.gr — “ΦΠΑ Συντελεστές”
If you have an accountant, a quick email with a list of what you sell is usually all it takes to confirm your rates. The effort is worth it — applying the wrong rate and later correcting it means issuing credit notes and corrected invoices, which is administrative friction you don’t need.
In Billino
You don’t enter a percentage manually. Instead, each product or service in Billino has a category — Standard, Reduced, Second Reduced, or Super Reduced. Billino knows what percentage each category means in your jurisdiction and applies it automatically on every invoice line that uses that product.
When both you and your recipient are in the same country, Billino classifies the invoice as Domestic and applies your jurisdiction’s rates — no configuration needed beyond the recipient’s country. If you sell across multiple categories in a single invoice (say, consulting and a book), each line carries its own rate, the tax amounts are calculated separately, and the totals are summed correctly.
For guidance on how this changes when you invoice internationally, see our cross-border VAT guide.
