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VAT for Freelancers: A Global Guide

VAT rules vary by country and client type. This global guide explains when to charge VAT, registration thresholds, and the B2B reverse charge mechanism.

By FlowFund TeamJune 28, 20263 min read

What Is VAT?

Value Added Tax applied at each stage of production. For freelancers, the key question: do you charge VAT to clients?

B2B vs B2C

B2B (business to business): If your client is a business in another country, reverse charge usually applies. You do not charge VAT. Client self-assesses in their country.

B2C (business to consumer): If client is a private individual in another EU country, you must charge VAT at the client country rate.

Most freelancers serve business clients — this simplifies things considerably.

Registration Thresholds

UK: 90,000 GBP. Germany: 22,000 EUR (Kleinunternehmer). France: 36,800 EUR. Netherlands: 20,000 EUR. US: No federal VAT.

Practical Steps

  1. Check if you exceed threshold in your country
  2. Register if required
  3. On invoices to EU business clients outside your country: write Reverse Charge Applies
  4. Keep records of client VAT numbers
  5. Submit periodic VAT returns
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