The difference between getting paid in 14 days versus 60 days isn't luck. It's how professional your invoice looks.
Most freelancers treat invoicing like an afterthought. They use whatever template they found on Google, miss required fields, get the VAT wrong, and wonder why clients take forever to pay.
Meanwhile, companies have entire departments making sure they get paid on time. Complete with automated reminders, late fees, and legal clauses ready to go.
This guide levels the playing field. You'll learn exactly what EU invoices require, how to handle VAT correctly across borders, payment terms that actually work, and follow-up strategies that don't feel awkward.
Let's fix the imbalance.
Required Invoice Fields for EU Compliance
Getting paid starts with being compliant. Missing fields = delayed payment while accounting departments send you back-and-forth emails asking for your VAT number.
Here's what every EU invoice must include:
Mandatory Fields
| Field | Description | Example |
|-------|-------------|---------|
| Invoice Number | Sequential, unique identifier | INV-2026-001 |
| Invoice Date | Date the invoice was issued | January 15, 2026 |
| Due Date | Payment deadline | February 14, 2026 |
| Seller Details | Your name/business name, address, VAT number | Your Business Ltd
123 Example Street
Berlin, Germany
VAT: DE123456789 |
| Buyer Details | Client name, address, VAT number (if B2B) | Client GmbH
456 Avenue
Munich, Germany
VAT: DE987654321 |
| Description | Clear description of work/services | Web development services - January 2026
Mobile app design - Phase 1 |
| Quantity & Unit Price | Itemized breakdown | 40 hours × €75/hour
1 project × €3,000 |
| Net Amount | Total before VAT | €3,000 |
| VAT Rate & Amount | Percentage and calculated amount | 19% VAT = €570 |
| Gross Amount | Total amount due (net + VAT) | €3,570 |
| Currency | ISO currency code | EUR |
| Payment Details | Bank account, IBAN, BIC | IBAN: DE89370400440532013000
BIC: COBADEFFXXX |
Country-Specific Requirements
Each EU country has small variations:
- Germany: Requires either Steuernummer (tax number) or USt-IdNr (VAT ID)
- France: SIRET number required (14-digit business identifier)
- Netherlands: KVK number (Chamber of Commerce) strongly recommended
- Italy: Codice Fiscale or Partita IVA needed
- Spain: NIF (tax ID) required on all invoices
If you work across multiple EU countries, include all relevant identifiers. Better to have too much info than miss something and delay payment.
VAT Handling for Freelancers
VAT is where most freelancers screw up. Charge it when you shouldn't. Don't charge it when you should. Both create accounting nightmares for clients and payment delays for you.
Here's what you actually need to know.
When to Charge VAT
The rules depend on who you're invoicing and where they are:
Domestic sales (same country as you):
- Charge your country's VAT rate
- Exception: If you're under the small business threshold (see below)
EU B2B cross-border (business client in another EU country):
- Use reverse charge mechanism
- Charge 0% VAT
- Include client's VAT number on invoice
- Add statement: "VAT reverse charge applies - Article 196 EU VAT Directive"
- Your client pays the VAT in their country
EU B2C cross-border (individual in another EU country):
- Charge your country's VAT rate for small amounts
- For substantial cross-border B2C sales: Use OSS (One Stop Shop) scheme
- Thresholds vary, but generally €10,000/year across all EU B2C sales
Non-EU clients (anywhere outside Europe):
- Charge 0% VAT
- Add statement: "Export of services - outside the scope of EU VAT"
- Keep proof of client location (contract, correspondence)
VAT Registration Thresholds
You don't have to register for VAT until you hit your country's threshold:
| Country | Annual Threshold |
|---------|------------------|
| Germany | €22,000 |
| France | €36,800 (services)
€85,800 (goods) |
| Netherlands | €20,000 |
| Italy | €65,000 |
| Spain | No threshold (register immediately) |
| Ireland | €37,500 |
| Poland | PLN 200,000 (~€43,000) |
| Belgium | €25,000 |
Below these thresholds, you can operate as a small business and skip VAT entirely. Once you cross it, you must register and start charging VAT on all applicable invoices.
The Reverse Charge Mechanism Explained
This trips up every freelancer at least once.
How it works:
- You invoice a business client in another EU country
- You verify their VAT number is valid (use VIES database)
- You charge 0% VAT on the invoice
- You include their VAT number and the reverse charge statement
- They pay the VAT in their own country (not to you)
What to include on the invoice:
Net Amount: €3,000
VAT: 0% (Reverse Charge)
Total Due: €3,000
VAT reverse charge applies under Article 196 of the EU VAT Directive.
Customer VAT number: DE987654321
Common mistake: Charging your domestic VAT rate to EU B2B clients. This creates a mess. The client can't reclaim it properly, and you've overcomplicated their accounting.
How to verify VAT numbers: Use the EU VIES database. Takes 30 seconds. If the number is invalid, don't use reverse charge - charge your domestic rate.
Non-EU Clients
This is the easiest scenario. Services to clients outside the EU are typically zero-rated.
What to include:
Net Amount: €3,000
VAT: 0% (Export of services)
Total Due: €3,000
Export of services - outside the scope of EU VAT.
What to keep: Documentation proving the client is outside the EU. Contracts, email correspondence, IP addresses from service delivery - whatever shows the service was consumed outside Europe.
Setting Payment Terms That Work
Payment terms aren't just formalities. They're the difference between consistent cash flow and chasing money every month.
Standard Payment Terms
- Net 7: Payment due within 7 days - best for established relationships or small amounts
- Net 14: Two-week turnaround - reasonable for most freelance work
- Net 30: Industry standard in many sectors - default if you don't specify
- Net 60: Avoid unless working with large enterprises that require it
Why Shorter is Better
Each extra day your money sits in someone else's account is opportunity cost for you.
Over a year, the difference between Net 14 and Net 60 is massive:
- 12 invoices at Net 14 = paid within 2 weeks, can reinvest or cover expenses faster
- 12 invoices at Net 60 = waiting 2 months per invoice, perpetual cash flow gap
The compound effect is real. Shorter terms mean you can take on new projects, cover expenses, and grow without constantly running on empty.
Payment Method Specification
Be explicit about how you want to be paid.
Within EU: SEPA Bank Transfer
Payment method: Bank transfer (SEPA)
IBAN: DE89370400440532013000
BIC: COBADEFFXXX
Account holder: Your Business Name
For international or faster payments:
- PayPal: Include email and note processing fees (2.9% + €0.35)
- Stripe: Send payment link
- Wise: For multi-currency at better rates than banks
Who pays transfer fees? State it clearly:
- "All bank fees are the responsibility of the payer. Please ensure full amount is received."
Late Payment Clauses
This is where EU law actually helps freelancers.
Under EU Directive 2011/7/EU, you're entitled to:
- Fixed compensation of €40 for recovery costs
- Interest on the outstanding amount (typically 8% + ECB reference rate)
- Start charging the day after the due date
Sample clause to include:
Late Payment Terms:
Payment is due within 14 days of the invoice date.
In accordance with EU Directive 2011/7/EU, late payments
will incur a compensation fee of €40 plus interest at
8% above the ECB reference rate per annum.
Does this make you feel awkward? Get over it. Companies include this stuff on every invoice they send you. It's not personal. It's professional.
Retainers and Milestone Billing
For larger projects, don't invoice at the end. Break it up.
Retainer structure:
- Monthly recurring payment for ongoing work
- Invoiced on the 1st of each month
- Example: €2,000/month for 20 hours of consulting
Milestone structure:
- Payment tied to project phases
- Example for a €10,000 project:
- 30% upfront (€3,000) - starts the work
- 40% at design approval (€4,000) - validates direction
- 30% at launch (€3,000) - completes delivery
Deposit requirements: New clients? Get 25-50% upfront. This filters out non-serious clients and covers your initial time investment if things go wrong.
Multi-Currency Invoicing
Working with clients in UK, Switzerland, or outside Europe? You'll need to handle currency conversions.
When to Invoice in Client's Currency
Pros:
- Removes friction for client payment
- Shows you're professional and international
- Large clients often require it
Cons:
- Exchange rate risk (rate changes between invoice and payment)
- Currency conversion fees when you receive payment
- More complex accounting
Best practice: For clients over €5,000 or long-term relationships, invoice in their currency. For one-off small projects, stick to EUR.
Exchange Rate Considerations
Which rate to use:
- ECB (European Central Bank) daily reference rate
- Your bank's commercial rate
- Specific rate on the invoice date
State it on the invoice:
Amount: £2,500
Exchange rate: 1 EUR = 0.85 GBP (ECB rate, January 15, 2026)
Equivalent: €2,941
Fixed vs. variable: Decide whether you accept variance between invoice date and payment date. Most freelancers fix the rate at invoice date and accept minor variance (±2%).
Bank Fees and Transfer Costs
SEPA transfers (within EU):
- Usually free or €0.50-2
- Standard 1-2 business days
International transfers:
- €15-50 per transfer depending on bank
- Can take 3-5 business days
- Intermediary banks may take additional cuts
Who pays? Specify in your payment terms:
All international transfer fees are the responsibility of
the client. Please ensure the full invoiced amount is
received in our account.
Or build it into your rate if dealing with non-EU clients regularly.
The Art of Invoice Follow-Up
The best invoice in the world doesn't matter if you never follow up.
Follow-Up Timeline
Day 0 (invoice sent):
- Confirm receipt: "Invoice sent for [project] - let me know if you need anything."
Due date:
- Quick check: "Hey, just checking - payment for Invoice #X should be arriving today. Let me know if there are any issues."
1-7 days late:
- Friendly reminder: "Following up on Invoice #X from [date]. It's now [X] days overdue. Can you confirm when payment will be processed?"
7-14 days late:
- Formal reminder: "Invoice #X (€3,000) is now 10 days overdue. Please arrange payment by [specific date]. Let me know if there's an issue I can help resolve."
14-30 days late:
- Final notice: "This is a final reminder for Invoice #X. Payment is now 21 days overdue. If payment is not received by [date], I will need to pause work and pursue late payment compensation under EU law."
30+ days late:
- Stop work, formal letter, small claims court, or collections agency
Tone: Professional But Firm
Don't apologize for asking: ❌ "Sorry to bother you, but..." ✅ "Following up on Invoice #X..."
Be specific: ❌ "Just checking on that invoice..." ✅ "Invoice #2026-003 for €3,000, sent January 15, due January 29..."
Make it easy: Include the invoice attachment again, restate the amount and payment details. Don't make them dig through old emails.
Escalation Ladder
Friendly tone (0-7 days late):
"Hey [name], just checking in on Invoice #X from January 15. Payment was due yesterday - can you confirm it's been processed? Let me know if you need anything."
Professional tone (7-14 days late):
"Hi [name], Invoice #2026-003 for €3,000 is now 10 days overdue. Can you please confirm when payment will be made? If there's an issue preventing payment, I'm happy to discuss."
Firm tone (14-30 days late):
"[Name], Invoice #2026-003 (€3,000) is now 21 days past due. As per our agreement and EU Directive 2011/7/EU, late payment incurs a €40 compensation fee plus interest. Please arrange immediate payment. If payment is not received by [specific date], I will need to pause all work and pursue formal collection."
Legal tone (30+ days):
"Dear [name], This is formal notice that Invoice #2026-003 remains unpaid 35 days after the due date. Total amount now due: €3,040 (original amount plus late payment compensation). Unless payment is received within 7 days, this matter will be referred to [collections agency/small claims court]."
Automating Reminders
Here's the thing: following up feels awkward. Even when you're 100% in the right.
Automation removes that emotional friction. Set the schedule once, let the system send reminders, get paid.
Typical automation sequence:
- Invoice sent → automatic confirmation email
- 3 days before due date → gentle reminder
- Due date → "payment due today" notice
- 7 days overdue → first follow-up
- 14 days overdue → formal reminder
- 21 days overdue → final notice
You set it and forget it. No more checking your calendar, wondering if you should send that email, debating the wording. It just happens.
How Chronobill Streamlines EU Invoicing
We built Chronobill because dealing with all this manually is a pain.
Pre-built EU-compliant templates:
- All required fields included
- Country-specific formats for Germany, France, Netherlands, etc.
- Professional design that doesn't look like a spreadsheet
Automatic VAT handling:
- Detects client location
- Applies correct VAT rate or reverse charge
- Includes required statements automatically
- Updates when regulations change
VIES VAT validation:
- Checks EU VAT numbers instantly
- Warns you if invalid before you send
- Prevents the "wrong VAT number" delay
Multi-currency support:
- Invoice in EUR, GBP, USD, CHF, or 150+ currencies
- Live ECB exchange rates
- Automatic conversion for accounting
Automated reminder sequences:
- Set your follow-up schedule once
- System sends reminders automatically
- Track payment status in real-time
- Never manually chase invoices again
Payment tracking:
- Mark invoices paid with one click
- See outstanding amounts at a glance
- Reconcile with bank statements
E-invoicing ready:
- EN 16931 compliant format
- Ready for mandatory e-invoicing rollout
- Future-proof your business
EU late payment compensation:
- Automatic calculation of €40 fee + interest
- Legal clause templates included
- Know exactly what you're owed
All of this means you spend less time on invoice admin and more time doing actual work.
Common Invoicing Mistakes to Avoid
Even experienced freelancers mess these up:
1. Missing VAT numbers Creates immediate delays. Accounting departments won't process invoices without proper VAT info. Include yours, verify theirs.
2. Unclear payment terms "Payment upon receipt" means nothing. Due in 7 days? 30 days? State it clearly.
3. No late payment clause Without it, you have no leverage. Include standard EU late payment terms.
4. Wrong client details Typo in company name? Invoice gets rejected. Double-check before sending.
5. Sending to wrong email Goes to spam, gets lost, or sits in someone's inbox who doesn't handle payments. Confirm the right accounts payable contact.
6. Not tracking payment status You sent the invoice... now what? Without tracking, you forget to follow up and lose money.
7. Inconsistent invoice numbering "INV-001, INV-002, INV-005" - where's 003 and 004? Tax authorities hate this. Keep it sequential.
8. Missing your own bank details Seems obvious, but it happens. Client wants to pay, can't find your IBAN, emails you asking, payment delayed another week.
9. Incorrect VAT calculation Math errors look unprofessional. Worse, they create accounting headaches for clients.
10. No invoice copies for yourself Keep records. Tax audits happen. Export PDFs and store them.
Conclusion
Professional invoicing isn't complicated. It's just detail-oriented.
Get the required fields right. Handle VAT correctly. Set clear payment terms. Follow up consistently.
Do this well, and you get paid faster. Do it poorly, and you waste time chasing money that should already be in your account.
The difference between freelancers who constantly struggle with cash flow and those who don't usually comes down to invoicing systems. Not talent. Not rates. Systems.
Companies figured this out decades ago. That's why they have entire departments making sure they get paid on time.
As a freelancer, you can't hire an accounting department. But you can use tools that do the same job.
Professional invoicing gets you paid in 14 days instead of 60. Over a year, that's the difference between financial stress and financial stability.
Ready to stop chasing invoices and start getting paid on time? Try Chronobill free for 14 days - no credit card required.