Invoice Tax & Compliance Guide by Country
The VAT/GST/Sales-tax rates, registration thresholds, and e-invoicing rules a freelancer needs — for 14 countries, with the EU mandate timeline that decides whether a PDF is still enough.
By KSP Labs, Software Studio behind Billify · Updated July 2026
Not tax advice. This is general, dated information to help you ask the right questions. Tax rules and e-invoice dates change, and your situation may have exceptions. Confirm with a qualified accountant or your national tax authority before relying on any of it.
The EU e-invoicing mandate timeline
The single most important shift for EU freelancers: country after country is requiring invoices in a structured, machine-readable format. A plain PDF stops being a valid B2B invoice on the dates below.
Since 2019 — Italy
All B2B/B2C e-invoicing mandatory via the SDI exchange.
1 Jan 2025 — Germany
Receiving structured e-invoices mandatory (issuance phased 2027–2028).
1 Jan 2026 — Belgium
All VAT taxpayers must issue + receive structured B2B (EN 16931).
1 Feb 2026 — Poland
KSeF mandatory for large taxpayers (FA(3) format, not UBL).
2026 — Spain
Veri*Factu invoicing-system verification rolling out.
1 Sep 2026 — France
Receiving structured e-invoices mandatory (SME/micro issuance deferred to Sep 2027; CTC).
1 Jan 2027 — Germany
Issuance mandatory for businesses >€800k turnover.
~2029 — United Kingdom
Decentralised Peppol e-invoicing expected (consulted Nov 2025).
1 Jul 2030 — EU-wide (ViDa)
Cross-border intra-EU B2G/B2B structured e-invoices mandatory (EN 16931); no SME exemption.
Quick reference: 14 countries
| Country | Tax | Std rate | E-invoicing |
|---|---|---|---|
| Germany | MwSt (VAT) | 19% | Receiving now |
| France | TVA (VAT) | 20% | Incoming |
| Italy | IVA (VAT) | 22% | Mandatory |
| Spain | IVA (VAT) | 21% | Incoming |
| Netherlands | BTW (VAT) | 21% | No mandate |
| Ireland | VAT | 23% | No mandate |
| United Kingdom | VAT | 20% | No mandate |
| United States | Sales tax (state) | Avg ≈ 6.6% (state/county; 0% in DE, MT, NH, OR) | No mandate |
| Canada | GST/HST | GST 5% (+ provincial HST 13–15% in participating provinces) | No mandate |
| Australia | GST | 10% | No mandate |
| Singapore | GST | 9% | No mandate |
| New Zealand | GST | 15% | No mandate |
| Hong Kong | None (no GST/VAT) | 0% — no GST or VAT | No mandate |
| United Arab Emirates | VAT | 5% | Incoming |
Country-by-country detail
Germany
- Currency:
- Euro (EUR)
- Tax:
- MwSt (VAT) · 19%
- Registration:
- Kleinunternehmer scheme ≈ €25k/yr turnover (2025)
- E-invoicing:
- Receiving now
Receiving structured e-invoices mandatory since 1 Jan 2025; issuance required >€800k turnover from 1 Jan 2027, all others 1 Jan 2028 (Kleinunternehmer & invoices ≤€250 exempt). Decentralised — a self-generated XRechnung/ZUGFeRD file is compliant.
Germany is moving to mandatory e-invoicing on a decentralised model — you can self-generate a compliant XML file without a government portal. If you're under the Kleinunternehmer threshold or turn over little, your obligation arrives last (2028). Standard VAT is 19%, reduced 7%.
France
- Currency:
- Euro (EUR)
- Tax:
- TVA (VAT) · 20%
- Registration:
- Franchise en base TVA ≈ €91.9k/yr (services)
- E-invoicing:
- Incoming
Receiving structured e-invoices mandatory 1 Sep 2026; SME/micro issuance deferred to Sep 2027. CTC model — a self-generated file alone is NOT compliant; a certified Plateforme Agréée must transmit. Cross-border (non-FR→FR) does not use the PA route.
France is a clearance (CTC) market — unlike Germany, you can't just generate a file; it must go through a certified platform. Cross-border invoices follow a different rule. Standard TVA is 20%, reduced 5.5%/10%. Under the franchise threshold you don't charge TVA.
Italy
- Currency:
- Euro (EUR)
- Tax:
- IVA (VAT) · 22%
- Registration:
- Flat-rate (forfettario) regime up to €85k/yr turnover
- E-invoicing:
- Mandatory
All B2B and B2C e-invoicing is mandatory via the SDI (Sistema di Interscambio) exchange since 2019 — the longest-running national mandate in the EU.
Italy is the EU's most mature e-invoice market — every invoice goes through the SDI exchange. If you bill Italian clients, expect to use it. Standard IVA is 22%. Many freelancers use the forfettario flat-rate regime, which has its own rules.
Spain
- Currency:
- Euro (EUR)
- Tax:
- IVA (VAT) · 21%
- Registration:
- No general VAT threshold (register from first sale)
- E-invoicing:
- Incoming
Veri*Factu (mandatory invoicing-system verification for certain B2B software) rolling out 2026; SII (immediate supply of info) already applies to large VAT taxpayers.
Spain is layering Veri*Factu (anti-fraud invoicing-system rules) on top of existing IVA rules. Standard IVA is 21%, reduced 10%/4%. There's no general VAT registration threshold, so you typically register from your first sale.
Netherlands
- Currency:
- Euro (EUR)
- Tax:
- BTW (VAT) · 21%
- Registration:
- Small-business scheme (KOR) up to €20k/yr
- E-invoicing:
- No mandate
No national B2B mandate yet; Peppol widely adopted. Falls under the EU ViDa cross-border rule from 1 Jul 2030.
The Netherlands has no current national e-invoice mandate for freelancers (ViDa arrives 2030). Standard BTW is 21%, reduced 9%. The small-business scheme (KOR) exempts you from charging BTW up to €20k turnover.
Ireland
- Currency:
- Euro (EUR)
- Tax:
- VAT · 23%
- Registration:
- €85k/yr (services)
- E-invoicing:
- No mandate
No national B2B e-invoice mandate; EU ViDa applies from 1 Jul 2030.
Ireland has no current e-invoice mandate (ViDa in 2030). Standard VAT is 23%, reduced 13.5%/9%. You must register for VAT above €85k services turnover; below it, registration is optional.
United Kingdom
- Currency:
- Pound sterling (GBP)
- Tax:
- VAT · 20%
- Registration:
- £90k/yr turnover
- E-invoicing:
- No mandate
No mandate; government consulted (Nov 2025) on a decentralised Peppol model, expected ~2029.
The UK has no e-invoice mandate yet (a Peppol-style model is under consultation, ~2029). Standard VAT is 20%, reduced 5%. VAT registration is mandatory above £90k turnover; the Making Tax Digital rules already require digital record-keeping.
United States
- Currency:
- US dollar (USD)
- Tax:
- Sales tax (state) · Avg ≈ 6.6% (state/county; 0% in DE, MT, NH, OR)
- Registration:
- State-specific economic nexus (~$100k–$500k sales)
- E-invoicing:
- No mandate
No federal VAT or e-invoice mandate; sales tax is state/county-level, and a few states run voluntary e-invoicing pilots.
The US has no federal VAT — sales tax is handled state-by-state (and five states have none). Most service-providing freelancers owe no sales tax, but rules vary. Issue clean invoices with clear line items; track state nexus if you sell goods.
Canada
- Currency:
- Canadian dollar (CAD)
- Tax:
- GST/HST · GST 5% (+ provincial HST 13–15% in participating provinces)
- Registration:
- C$30k/yr (small-supplier threshold)
- E-invoicing:
- No mandate
No federal e-invoice mandate; Peppol adopted voluntarily by some businesses and government.
Canada charges 5% GST federally, with HST (harmonized, 13–15%) in some provinces. The C$30k small-supplier threshold means many new freelancers don't need to register immediately. Provincial rules (QST in Québec) layer on top.
Australia
- Currency:
- Australian dollar (AUD)
- Tax:
- GST · 10%
- Registration:
- A$75k/yr turnover
- E-invoicing:
- No mandate
No business mandate; eInvoicing via Peppol is government-led and voluntary for suppliers.
Australia charges 10% GST, with registration required above A$75k turnover. The ABN (Australian Business Number) goes on your invoices, and Peppol e-invoicing is available but not mandatory for freelancers.
Singapore
- Currency:
- Singapore dollar (SGD)
- Tax:
- GST · 9%
- Registration:
- S$1M/yr turnover
- E-invoicing:
- No mandate
No mandate; the InvoiceNow (Peppol) network is actively encouraged by government.
Singapore's GST rose to 9% in 2024, with registration needed above S$1M turnover — so most freelancers don't register. The InvoiceNow e-invoice network is encouraged but optional.
New Zealand
- Currency:
- New Zealand dollar (NZD)
- Tax:
- GST · 15%
- Registration:
- NZ$60k/yr turnover
- E-invoicing:
- No mandate
No mandate; Peppol e-invoicing available via the BusinessNZ network.
New Zealand charges 15% GST, one of the higher rates but with a high NZ$60k registration threshold. GST-registered businesses must show GST on invoices and file returns.
Hong Kong
- Currency:
- Hong Kong dollar (HKD)
- Tax:
- None (no GST/VAT) · 0% — no GST or VAT
- Registration:
- N/A (profits tax applies instead, ~16.5%)
- E-invoicing:
- No mandate
No GST/VAT and no e-invoice mandate.
Hong Kong has no GST or VAT — invoicing is simpler, with no consumption-tax line. Profits tax (~16.5% for corporations, 15% for unincorporated) is handled separately, not on each invoice.
United Arab Emirates
- Currency:
- UAE dirham (AED)
- Tax:
- VAT · 5%
- Registration:
- AED 375k/yr mandatory (AED 187.5k voluntary)
- E-invoicing:
- Incoming
Phase 2 e-invoicing (clearance model) planned for large taxpayers ~2026, broader rollout after.
The UAE has one of the world's lowest VAT rates at 5%, with mandatory registration above AED 375k. A clearance-model e-invoice system is rolling out for large taxpayers first, so watch this space if you bill UAE clients.
Frequently asked questions
Do freelancers have to charge VAT or GST?
It depends on where your clients are and your turnover. Most countries have a registration threshold (e.g. £90k UK, €25k Germany Kleinunternehmer, A$75k Australia) below which charging VAT/GST is optional or unnecessary. Once you cross it — or voluntarily register — you must add it to your invoices and file returns. Always confirm with your local tax authority.
What is e-invoicing, and does it affect freelancers?
E-invoicing means issuing invoices in a structured, machine-readable format (often UBL or XRechnung XML) rather than a PDF. Several EU countries now require it, and the rules differ by country: some let you self-generate a file (Germany), others require a certified platform to transmit it (France, Italy). If you invoice EU B2B clients from 2026 onward, you will increasingly need to produce one.
Is a PDF invoice still valid?
A PDF remains a valid invoice in most of the world today, but from 2027–2028 a plain PDF will no longer be a compliant B2B invoice in Germany, Belgium, and parts of France for domestic transactions, and from July 2030 for cross-border intra-EU B2B. Check the country rows above and verify with the local authority.
What currency and tax should I put on an international invoice?
Use the currency you and your client agreed on, clearly stated. For tax, the general rule is that services are taxed where the customer is (B2B reverse-charge in the EU), but this varies by country and service type. When in doubt, state "reverse charge" and the client's VAT ID, and confirm the treatment with an accountant.
Is this guide tax advice?
No. It's general, dated information to help you ask the right questions. Tax rules and e-invoice dates change, and your situation may have exceptions. Always confirm with a qualified accountant or your national tax authority before relying on any of it.
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