Understanding Invoice Types
Learn the differences between Standard VAT, Reverse Charge, and VAT Exempt invoices and when to use each one.
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Standard Invoice (with VAT)
A standard invoice includes VAT calculated at your country's standard rate. Use this type when you are VAT-registered and invoicing a client in the same country, or when invoicing a non-business client (B2C) in another EU country.
The VAT amount is calculated automatically based on your country's rates. For example, a German supplier would charge 19% VAT, while a Slovak supplier would charge 23%.
The invoice will show the net amount, the VAT rate and amount, and the gross total. All required tax fields for your country are included automatically.
Reverse Charge Invoice
Reverse charge applies when you provide B2B services across EU borders. Instead of you charging VAT, the responsibility to account for VAT shifts to your client.
This mechanism applies when three conditions are met: the transaction is B2B (business-to-business), the supplier and client are in different EU countries, and the client has a valid EU VAT ID.
When reverse charge is selected, the invoice shows 0% VAT and includes the legally required reverse charge statement in your country's local language, referencing Article 196 of the EU VAT Directive 2006/112/EC.
euinvoice.app detects reverse charge automatically when you enter a client in a different EU country with a valid VAT ID.
VAT Exempt (Small Business)
If your annual turnover is below your country's VAT threshold, you may qualify for a small business exemption. This means you do not charge VAT on your invoices.
Each country has its own rules and thresholds. For example, Germany's Kleinunternehmerregelung (section 19 UStG) applies under 25,000 EUR, Slovakia's exemption applies under 50,000 EUR, and Poland's threshold is 200,000 PLN.
When VAT Exempt is selected, the invoice includes the specific legal text required by your country's tax law, explaining why no VAT is charged.
How to select the right type
If you are not VAT-registered and your turnover is below the threshold, choose VAT Exempt.
If you are VAT-registered and invoicing a client in the same country, choose Standard.
If you are invoicing a business client in another EU country who has a valid VAT ID, choose Reverse Charge. The generator will often detect this automatically.
When in doubt, consult your tax advisor. The correct invoice type depends on your specific situation, VAT registration status, and the nature of the transaction.