Invoicing within the EU: what do you need to know?

If you sell to customers in other EU countries, invoicing rules differ from purely domestic sales in several ways, especially around VAT. This is an overview, always check with your accountant for your specific situation, since the rules vary depending on whether you sell goods or services, and to businesses or private individuals.

Selling to businesses in other EU countries

When selling services to a VAT-registered business in another EU country, the reverse charge mechanism normally applies, meaning you invoice without Swedish VAT, and the buyer instead reports and pays the VAT in their own country. On the invoice, you state the buyer's VAT number along with a note such as "Reverse charge" or the Swedish equivalent, "Omvänd betalningsskyldighet".

Verify the buyer's VAT number

Before invoicing without VAT, you should check that the buyer's VAT number is actually valid, which is done through the European Commission's VIES service. If the number cannot be verified, or the buyer is not VAT-registered, you should normally invoice with Swedish VAT instead.

Selling to private individuals within the EU

Selling to private individuals in other EU countries follows different rules, especially for digital services and distance selling of goods, where, under certain conditions, you charge VAT at the buyer's country rate instead of the Swedish rate, and report it through the OSS (One Stop Shop) system instead of registering for VAT in each individual country.

What should the invoice include?

In addition to the usual mandatory details, sequential number, date, description, and amount, an invoice to an EU customer should include your own VAT number, the buyer's VAT number (for business sales), and a clear note explaining why VAT is not being charged when applicable.

In FakturaKlar you can set the customer's country and VAT number, choose the right VAT rate per line (including 0% where applicable), and add your own text to the invoice to explain the basis for the VAT treatment.