How to Invoice Foreign Customers as a Freelancer: EU vs. Outside the EU

#The truth: Invoicing abroad can be very profitable (if you do it right)

Thirty-four percent of Spanish freelancers have ever invoiced international clients.

And many of them have done it wrong:

• VAT applied when it was not due
• VAT not applied when it was due
• Unfiled quarterly forms
• Fines for errors in international invoicing

But here comes the good news: Invoicing abroad is easier than it looks if you understand the basic rules.

This article teaches you exactly how to do it step by step, with real examples and all the tax obligations.

#⚠️ First of all: Invoicing to Europe is not the same as invoicing outside Europe

The rules change completely depending on where your customer is.

#Three different scenarios:

1. Customer in the European Union (EU) → Investment of the Taxable Person (ISP)
2. Customer outside the EU → Export (excluding VAT)
3. Spanish customer → Normal VAT (21%, 10% or 4%)

#Scenario 1: Invoice to the European Union (B2B)

#When does it apply?

When you sell services or goods to another company or freelancer within the EU.

EU countries (27 members): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden.

#VAT Rule: Inversion of the Passive Subject (ISP)

What does it mean? You do NOT charge VAT. The customer pays the VAT in your country.

Requirements to apply ISP:

1. Your customer must be a company or self-employed (B2B)
2. Your customer must have a valid intra-community VAT number
3. You must validate your VAT number in the VIES system
4. The service or good must be intra-community

#How to invoice EU customer (step by step)

1️⃣ Validate the intracommunity VAT number

Tool: VIES system of the European Commission

• Web: https://ec.europa.eu/taxation_customs/vies/

Example:

• Customer in France: FR 12345678901
• You enter the NIF in VIES
• If valid, you can apply ISP

2️⃣ Invoice structure

INVOICE

Nº 2026-001

Date

15 January 2026

Issuer

Your name/business name

NIF: B12345678

Your address in Spain

Client

ABC GmbH

Intracommunity VAT number: DE123456789

Your address in Germany

Concept	Amount
Consultancy services	1.000,00€

Tax base:1.000,00€

VAT:0,00€ (Taxpayer's investment)

TOTAL:1.000,00€

Observations

Operation exempt from VAT according to Art. 69 and 84 LIVA. Reverse Charge. Customer responsible for the payment of VAT in his country.

📱 Invoice generated with software adapted to electronic invoicing requirements.

Verification code

3️⃣ File the Form 349 (quarterly)

What is Form 349? Informative declaration of intra-community transactions.

When to file it:

• Every quarter (together with Model 303)
• If you exceed 50.000€ per year in intracommunity transactions: monthly

What to include:

• Customer’s VAT number
• Total amount invoiced (excluding VAT)
• Type of transaction (E = delivery of goods, S = provision of services)

Filing deadline:

• Quarterly: Until the 20th of the month following the quarter
• Example: 1Q 2026 → Up to April 20th

#Types of intra-community transactions

A) Services (most common)

General rule: VAT is paid where the customer is (ISP).

Examples:

• Consulting
• Graphic design
• Programming
• Digital marketing
• Translation

Exception: Real estate related services → VAT where the real estate is located.

B) Goods (physical products)

Rule: Intra-Community supply exempt from VAT (if eligible).

Requirements:

1. Goods transported from Spain to another EU country
2. Customer with valid intra-EU VAT number
3. Proof of transport (CMR, delivery note, tracking)

Submit: Form 349 with key “E” (delivery of goods).

#Common errors in EU invoicing

❌ Error 1: Failure to validate the intra-community VAT number

Consequence: Hacienda can force you to pay Spanish VAT retroactively.

Solution: Always validate in VIES before issuing the invoice.

❌ Error 2: Failure to submit Model 349

Consequence: Fine from 300€ to 6.000€.

Solution: Set up quarterly reminders.

❌ Error 3: Apply VAT when it is not due

Consequence: You charge VAT that you then have to refund (and the customer gets angry).

Solution: If in doubt, consult your manager BEFORE issuing the invoice.

#Scenario 2: Invoicing outside the European Union

#When does it apply?

When you sell to customers in:

• United Kingdom (since Brexit)
• United States
• Latin America
• Asia
• Africa
• Oceania

#VAT Rule: Export without VAT

Principle: Exports are exempt from VAT.

Requirements:

1. Customer outside the EU
2. Service provided from Spain
3. Goods physically shipped outside the EU (if applicable)

#How to invoice outside EU (step by step)

INVOICE

Nº 2026-002

Date

20 January 2026

Issuer

Your name/business name

NIF: B12345678

Your address in Spain

Client

XYZ Inc.

Tax ID: 12-3456789 (USA)

Your address in USA

Concept	Amount
Web Application Development	2.000,00€

Tax base:2.000,00€

VAT:0,00€ (Export Services)

TOTAL:2.000,00€

Observations

Operation exempt from VAT according to Art. 21 LIVA (export of services). Invoice issued according to Spanish legislation.

📱 Invoice generated with software adapted to electronic invoicing requirements.

Verification code

#Is there a form to submit?

Form 349: ❌ NO (it is only for EU intra-community operations)

Form 303 (VAT): ✅ YES, but you declare the transaction as exempt.

#Special cases: United Kingdom after Brexit

As of January 1, 2021, the United Kingdom is considered outside the EU.

Invoicing to UK:

• No Spanish VAT (export)
• Customer pays VAT in UK (if applicable)
• You do NOT file Form 349

#Export of physical goods

Additional requirement: You must prove that the product left Spain.

Documentation required:

• Transport document (international CMR, DUA)
• Invoice with carrier’s details
• Proof of delivery at destination

#Scenario 3: Private customers (B2C) abroad

#General rule: Spanish VAT applies

If you sell to a final consumer (non-business) in any country, you apply Spanish VAT (21%).

Exceptions:

• Digital services (ebooks, online courses, SaaS): VAT of the consumer’s country
• Physical goods shipped: VAT of the destination country (if you exceed thresholds)

#Digital services: OSS (One Stop Shop) Regime

What is it? System that allows you to pay the VAT of all EU countries from Spain.

When to use it: If you sell digital services to end consumers in the EU (B2C).

Examples:

• Online courses
• Ebooks
• Software (SaaS)
• Streaming

Registration: AEAT e-Office (OSS Regime).

Declaration: Quarterly, with VAT differentiated by country.

#International collections: how to receive the money?

#Main options

1️⃣ International bank transfer (SWIFT)

Advantages:

• Traditional method
• Globally accepted

Disadvantages:

• High commissions (10-40€ per transfer)
• Delay (3-5 business days)
• Unfavorable exchange rate

2️⃣ Digital platforms (Wise, PayPal, Stripe)

Advantages:

• Lower fees (1-3%)
• Fast transfer (1-2 days)
• Better exchange rate

Disadvantages:

• Not all customers use them

Recommendation: Wise for transfers, Stripe for recurring payments.

3️⃣ Cryptocurrencies (Bitcoin, USDT)

Advantages:

• No middleman
• Fast transfers
• Low commissions

Disadvantages:

• Volatility (if you cash in Bitcoin)
• Complex tax regulation in Spain
• Few customers use it

#Additional tax obligations

#Form 303 (VAT quarterly)

What to declare:

• Box 61: Exempt transactions (exports + ISP)
• Box 59: Taxable base excluding VAT

Example:

• EU invoices (ISP): 5.000€ → Box 61
• Invoices outside EU: 3.000€ → Box 61

#Form 349 (only intra-community transactions)

When to file:

• If you invoice customers in the EU (with ISP)

What to include:

• Intra-EU VAT number of the customer
• Amount (excluding VAT)
• Key: “S” (services) or “E” (goods)

#Form 036/037 (registration in the Register of Intra-Community Operators)

Is it mandatory? YES, if you are going to invoice customers in the EU on a regular basis.

How to register:

• Form 036 (census registration)
• Box 582: “Registration in the Register of Intra-Community Operators”

#Practical cases

#Case 1: Spanish programmer invoicing startup in Berlin (Germany)

Client: German company with VAT number DE123456789

Invoice:

• Base: 3.000€
• VAT: 0€ (ISP)
• Total: 3.000€

Obligations:

• ✓ Validate NIF in VIES
• ✓ Include ISP mention in invoice
• ✓ File Form 349 (quarterly)
• ✓ Declare in Model 303 (box 61)

#Case 2: Graphic designer invoices to agency in New York (USA)

Client: US company (outside EU)

Invoice:

• Base: 1.500€
• VAT: 0€ (Export)
• Total: 1.500€

Obligations:

• ✓ Include mention “VAT exempt export”
• ✓ Declare in Model 303 (box 61)
• ❌ Do NOT file Form 349

#Case 3: Consultant invoices a company in London (UK) after Brexit

Client: UK company (outside EU from 2021)

Invoice:

• Base: 2.500€
• VAT: 0€ (Export)
• Total: 2.500€

Obligations:

• ✓ Treat as export (same as USA)
• ✓ Declare in Model 303 (box 61)
• ❌ Do NOT file Form 349

#Checklist before you issue your first international invoice

#✅ Step 1: Verify the type of customer

• are you a company or an individual?
• where are you located (EU or non-EU)?
• do you have a valid EU VAT number (if EU)?

#Step 2: Determine if you are subject to VAT

• EU customer + company → ISP (excl. VAT)
• Customer outside EU → Export (without VAT)
• Private customer → Spanish VAT (21%)

#✅ Step 3: Issue the invoice correctly

• Intracommunity VAT number of the customer (if applicable)
• Legal mention (ISP or Export)
• Taxable amount excluding VAT

#✅ Step 4: Submit the corresponding forms

• Form 349 (if EU)
• Form 303 (always)

#✅ Step 5: Collect the money

• Define payment method before starting work
• Consider digital platforms to reduce commissions

#Frequently Asked Questions

#Serious mistakes to avoid

#❌ Not issuing an invoice

Risk: Fine + tax inspection

Solution: Issue invoice ALWAYS, even if the customer does not ask for it.

#❌ Charge in cash or crypto without declaring

Risk: Tax offense (fine + interest + possible jail if exceeds 120.000€)

Solution: Declare EVERYTHING you charge, in any currency.

#❌ Apply VAT when it’s not due (or vice versa)

Risk: Problems with tax authorities + angry customer

Solution: ALWAYS consult your manager before the first international invoice.

#Useful tools for international invoicing

#VIES (intra-community VAT number validation)

• Web: https://ec.europa.eu/taxation_customs/vies/
• Free
• Mandatory for ISP

#Bank of Spain (official exchange rate)

• Web: https://www.bde.es
• To convert foreign currency to euros

#Wise (international transfers)

• Low commissions (0.5-1%)
• Real exchange rate
• Alternative to traditional banks

#BeeL.es (billing with Verifactu + ISP)

• Creates international invoices correctly
• Includes legal mentions automatically
• Compatible with Verifactu 2025

#Conclusion: Invoicing internationally is easier than it seems

Most freelancers avoid invoicing abroad for fear of “doing it wrong”.

But the reality is simple:

• ✓ EU customer (company) → No VAT (ISP) + Form 349
• ✓ Customer outside EU → No VAT (export)
• ✓ Always in Model 303

Errors occur when:

• You do not validate the intracommunity NIF
• You forget the Form 349
• You apply VAT when it is not due

The solution: Use software that guides you automatically.

Start invoicing internationally with BeeL.es: automatic VAT, legal mentions included, Verifactu compliant.

#📚 Sources and References

AEAT: Reversal of the taxpayer in intra-community transactions

European Commission: VIES - Intracommunity VAT number validation

BOE: VAT Law - Articles 69, 84 (intra-community operations)