Updated May 2026 · 8 min read
A VAT invoiceis not just a regular invoice with a tax line added. It has specific legal requirements — and issuing a non-compliant VAT invoice can result in fines and your client losing their right to reclaim input VAT. Here's everything you need to know.
A VAT invoice is an invoice issued by a VAT-registered business that includes all the information required by tax authorities to document a VAT-taxable transaction.
Note: If you are not VAT-registered, you do not issue a VAT invoice and should not charge VAT. Only VAT-registered businesses issue VAT invoices.
A full VAT invoice must include all of the following fields:
The date the goods or services were provided (may differ from invoice date).
The date the invoice was issued.
Sequential, never reused.
Format varies by country (e.g. NL123456789B01, GB123456789).
Required for B2B transactions where VAT is reverse-charged.
Must match your VAT registration exactly.
Full legal name and address.
What was sold — goods or services, clearly described.
e.g. 21%, 9%, 0% — per line item if multiple rates apply.
Amount before VAT, per rate.
The actual VAT charged, per rate.
Grand total the customer pays.
Contains all 12 fields listed above. Required for B2B transactions and invoices over €100 (or local equivalent). This is the standard VAT invoice.
Allowed for transactions under €100 in most EU countries. Fewer fields required — you can omit customer details and show VAT-inclusive price with the rate. Common for retail receipts.
The buyer creates the invoice on behalf of the supplier — only allowed with prior written agreement between both parties. Common in publishing, agriculture, and some agency relationships.
| Country | Standard Rate | Reduced Rate(s) | Reduced applies to |
|---|---|---|---|
| 🇩🇪 Germany | 19% | 7% | Books, food, transport |
| 🇫🇷 France | 20% | 5.5% / 10% | Food, restaurants |
| 🇳🇱 Netherlands | 21% | 9% | Food, pharmaceuticals |
| 🇧🇪 Belgium | 21% | 6% / 12% | Food, books |
| 🇪🇸 Spain | 21% | 4% / 10% | Food, medicine |
| 🇮🇹 Italy | 22% | 4% / 5% / 10% | Food, pharma |
| 🇦🇹 Austria | 20% | 10% / 13% | Food, cultural |
| 🇬🇧 UK (post-Brexit) | 20% | 5% | Energy, children's car seats |
| 🇸🇪 Sweden | 25% | 6% / 12% | Hotels, books, food |
| 🇩🇰 Denmark | 25% | — | No reduced rate |
Use our free invoice template tool to create a compliant VAT invoice in minutes. Supports multiple VAT rates (0%, 9%, 20%, 21%, 25%) and auto-calculates VAT amounts.
Open Free VAT Invoice Template →A VAT invoice is an invoice issued by a VAT-registered seller that includes all required VAT information — VAT number, rate, and amount charged. It allows B2B buyers to reclaim input VAT.
Only if you are VAT-registered. EU registration thresholds vary by country. In the Netherlands it's €20,000/year turnover (KOR threshold); in the UK it's £90,000.
A regular invoice records a sale. A VAT invoice additionally shows your VAT number, the applicable VAT rate, the VAT amount, and totals both excluding and including VAT.
In B2B cross-border transactions within the EU, VAT is often 'reverse charged' — meaning the buyer accounts for the VAT rather than the seller. The invoice should state 'VAT reverse charged' and show 0% VAT.
Yes. Chaser's invoice builder supports multiple VAT rates per line item and automatically calculates VAT totals. Your VAT number can be saved in your company profile.
Professional invoices with correct VAT calculation — plus automated payment reminders until your client pays.
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