Understanding the EU’s invoicing requirements is key for businesses operating within its member states. An invoice is a commercial document issued by a seller to a buyer; it details the products or services provided, and it establishes an obligation for payment. Within the EU, invoices are significant for value-added tax (VAT) accounting and compliance.

The primary legal framework outlining invoice content and issuance is Council Directive 2006/112/EC, commonly known as the VAT Directive. This directive sets forth the harmonized invoicing rules applicable across all member states. However, detailed invoicing requirements can vary significantly from one country to another. Therefore, it’s important to review the specific regulations of each country. Invoices must comply with the rules of the country where the sale of goods or services is considered to occur. This guide provides an overview of invoice content requirements, simplified invoicing options, currency considerations, and acceptable formats based on the EU VAT Directive.

Which circumstances require an invoice?

Under EU VAT rules, issuing an invoice is mandatory for most business-to-business (B2B) transactions. Businesses based in the EU are required to issue invoices for supplying goods or services to another business. However, depending on the member state, it may not be mandatory to issue invoices for the supply of certain exempt services (e.g., financial and insurance transactions or educational services).

Although there is no general obligation to issue invoices to nonbusiness customers, EU businesses must issue invoices for the sale of goods to private individuals in a different EU country if they are not using the Union One Stop Shop (OSS) scheme. The Union OSS scheme allows businesses to register in one EU member state for all intra-EU sales of goods and services to private individuals in other EU countries.

What an invoice needs to contain

Information fields

The EU VAT law establishes the minimum content requirements for invoices. However, individual EU member states may specify additional details that need to be included. Based on the EU VAT law, an invoice must contain the following information to be compliant:

• Date of issue: The date the invoice is issued.
  
• Sequential invoice number: A unique, sequential identifier for the invoice.
  
• Supplier’s VAT identification number: The VAT number under which the supplier made the supply.
  
• Customer’s VAT identification number: Required for intracommunity supplies or when the customer is liable for VAT.
  
• Full names and addresses: The full names and addresses of both the supplier and the customer.
  
• Description of goods or services: A clear description of the quantity and nature of the goods or services provided.
  
• Date of supply: The date the supply was made or when payment on account was received, if different from the invoice date.
  
• Taxable amount per rate or exemption: The taxable amount for each applicable VAT rate or exemption.
  
• Unit price and discounts: The unit price exclusive of VAT, along with any applicable discounts or rebates.
  
• VAT rate applied: The VAT rate applicable to the goods or services provided.
  
• VAT amount payable: The total VAT amount due.
  
• Reference to self-billing: If the customer issues the invoice on behalf of the seller, the invoice must include “self-billing.”
  
• Reference to exemptions or reverse charge: If applicable, a note indicating the supply is exempt from VAT or subject to the reverse charge mechanism.
  
• Reference to special schemes: Indications of any special schemes, such as margin schemes or cash accounting, if applicable.
  
• Tax representative information: If a tax representative is responsible for VAT payment, their VAT identification number, full name, and address must be included.
  

Starting July 1, 2030, invoices will need to include additional details to ensure compliance. For corrective invoices, a sequential number identifying the original invoice being corrected must be included. Additionally, the supplier’s bank account number(s) designated for payment must also be clearly stated on the invoice.

Simplified invoices

Under the EU VAT Directive, simplified invoices are permissible in specific situations, such as when the invoice amount does not exceed €100. These invoices require fewer details than full invoices, but the exact requirements can vary by member state. Typically, a simplified invoice includes:

• Date of issue: The date when the invoice is issued.
  
• Supplier identification: The name and address of the taxable person supplying the goods or services.
  
• Description of goods or services: Identification of the type and quantity of goods supplied or services rendered.
  
• VAT amount payable: The VAT amount payable or the information needed to calculate it.
  
• Reference to initial invoice: For credit notes, a specific and unambiguous reference to the initial invoice and the details being amended.
  

Language

Under EU VAT rules, there is no specific requirement regarding the language in which an invoice must be issued. However, individual EU member states may have their own regulations mandating that invoices be issued in their official languages.

Currency

Invoices can be issued in any currency; however, the VAT amount must be expressed in the national currency of the member state where the supply is deemed to take place.

Payment due date

Under EU VAT rules, specifying a payment due date is not a mandatory requirement for VAT purposes. However, including a payment due date is considered a best practice, as it clarifies payment terms and can facilitate timely transactions.

Invoice format

Under EU VAT law, invoices can be issued in either paper or electronic formats. Electronic invoices (e-invoices) are treated as equivalent to paper invoices—provided their authenticity, content integrity, and legibility are guaranteed. The use of electronic invoices is subject to the recipient’s acceptance.

However, this will change with the expected implementation of the VAT in the Digital Age Directive. Under the new rules, customer consent will no longer be required for issuing e-invoices, meaning businesses will be obligated to accept e-invoices if a domestic e-invoicing regime is introduced. From July 1, 2030, the term “electronic invoice” will refer exclusively to invoices that are issued, transmitted, and processed in a structured electronic format that enables automated processing. Electronic invoicing will become the default system for the issuance of invoices in the EU. All EU businesses will be required to issue e-invoices for B2B sales of goods or services to customers in other EU member states.

In the EU, electronic invoicing is already mandatory for business-to-government (B2G) transactions, with public administrations required to accept structured electronic invoices. Some member states, such as Italy and Romania, have extended this obligation to include domestic B2B sales. Many other member states are planning to follow suit in the near future.

For more information on Stripe Invoicing, read our docs. For more information on third-party providers in our Stripe App store that support e-invoicing, visit this guide. To start sending invoices and accepting payments right away, reach out to our sales team.