Freelancing in the EU: Your Guide to Cross-Border Work

As a freelancer, navigating the intricacies of cross-border assignments in the EU may seem like a complex task, but that is not necessarily so. For example, freelancers enjoy a degree of freedom from EU accounting regulations and, in many cases, do not have to charge their clients VAT when providing services. Drawing on insights from the Your Europe portal, this article aims to help freelancers to efficiently manage their cross-border assignments.??

Accounting for freelancers and your VAT obligations?

If you are a freelancer in the EU, your business is not regulated by EU rules on accounting. This means that you should check the national rules with the authorities in the EU country where your business is established.?

Depending on where you sell your services, you will have different VAT obligations. Find the solution to your specific case on Your Europe.??

For example, if you are selling services like web design, digital marketing or other intangible activities to a business based in another EU country, you usually do not need to charge your customer VAT. They will be paying VAT on the services received at the applicable rate in their country. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.?

There are several important exceptions to these rules, so make sure that you are informed about them.??

Receiving a payment?

When it comes to receiving payment, the same rules that apply to small and medium-sized enterprises apply to freelancers as well, as both are legal entities. For example, when your client makes an electronic payment, you should accept it irrespective of where in the EU the customer is based. Surcharges cannot be applied. If the customer is paying in their local currency, they should be informed about charges related to currency conversion. Find more information about receiving a payment on YourEurope.?

Invoicing a client??

Once you have provided your service, it is time to send an invoice to the client. When this is done via electronic invoicing, it is called eInvoicing. An eInvoice is issued, sent and received in a structured way that makes it easy to process it automatically and electronically. Find the guidelines on Your Europe on how to start using eInvoicing for your business.?

Each EU country has different rules on how eInvoicing works, and it might even be obligatory in some countries. You can find specific rules by country on Your Europe.?

Why is eInvoicing beneficial for you as a freelancer??

• The information is processed quickly.?

• Physical paper is substituted with an electronic form, making handling and archiving easier and faster.?

• You get to save on time, printing and postage.?

Claiming compensation for late payments?

Your Europe offers you an explanation on how to claim interest and compensation on payments you are owed for your freelancing services. By using the interest calculator you can find out how much a client owes you in a certain situation.?

To speed up cross-border debt recovery, you can apply online, as well as request a court order to freeze funds in the bank account of the company that owes you money. You can find more information on how to apply for this option, known as the European Account Preservation Order (EAPO) on the Your Europe portal. EAPO is applicable in all EU countries except Denmark.?

Visit the Your Europe portal?

As a freelancer, managing your cross-border assignments effectively requires a solid grasp of the various rules and best practices surrounding VAT obligations, payment processing, late payment compensation, and invoicing.? Take a look at the resources and guidelines provided by the Your Europe portal to ensure that you meet all the necessary legal requirements and optimize your business operations across EU borders.??