Summary
- In case a transaction is qualified as a ”supply of goods” or ”supply of services” made to another taxable person or to a non-taxable legal person, it is the supplier who SHALL issue an invoice. In specific circumstances, the customer can issue the invoice (”self-billing”) or by a third party in the name and on behalf of the supplier.
- An invoice also needs to be issued in case of
- B2C Distance Sales of Goods (non-domestic B2C E-Commerce) excl. if ”Union Scheme” is applied.
- Intra-Community Supply of Goods (B2B only)
- A payment on account (pre-payment) for both goods and services
- However, Member States MAY require the issuance of an invoice for other transactions
- An invoice SHALL NOT be required for exempted financial and insurance related services (more specifically for the transactions mentioned in Art. 135(1)(a) to (g). Howver, Member States MAY require that an invoice is issued for these transactions.
- For B2C E-Commerce transactions, this means that an invoice MAY be required for domestic transactions. An invoice CAN NOT be required for intra-EU distance sales of goods (application of the Union Scheme).
Relevant article in the EU VAT Directive
Article 220
1. Every taxable person shall ensure that, in respect of the following, an invoice is issued, either by himself or by his customer or, in his name and on his behalf, by a third party:
(1) supplies of goods or services which he has made to another taxable person or to a non-taxable legal person;
(2) supplies of goods as referred to in point (a) of Article 33 except where a taxable person is making use of the special scheme in Section 3 of Chapter 6 of Title XII (which is the Union scheme);
(3) supplies of goods carried out in accordance with the conditions specified in Article 138;
(4) any payment on account made to him before one of the supplies of goods referred to in points (1) and (2) was carried out;
(5) any payment on account made to him by another taxable person or non-taxable legal person before the provision of services was completed.
2. By way of derogation from paragraph 1, and without prejudice to Article 221(2), the issue of an invoice shall not be required in respect of supplies of services exempted under points (a) to (g) of Article 135(1).
Article 221
1. Member States may impose on taxable persons an obligation to issue an invoice in accordance with the details required under Article 226 or 226b in respect of supplies of goods or services other than those referred to in Article 220(1).
2. Member States may impose on taxable persons who have established their business in their territory or who have a fixed establishment in their territory from which the supply is made, an obligation to issue an invoice in accordance with the details required in Article 226 or 226b in respect of supplies of services exempted under points (a) to (g) of Article 135(1) which those taxable persons have made in their territory or outside the Community.
3. Member States may release taxable persons from the obligation laid down in Article 220(1) or in Article 220a to issue an invoice in respect of supplies of goods or services which they have made in their territory and which are exempt, with or without deductibility of the VAT paid in the preceding stage, pursuant to Articles 110 and 111, Article 125(1), Article 127, Article 128(1), Article 132, points (h) to (l) of Article 135(1), Articles 136, 371, 375, 376 and 377, Articles 378(2) and 379(2) and Articles 380 to 390c.
See also
- Overview of the European Union VAT Directives, Implementing regulation, Council decisions
- E-Commerce: What are the different invoicing obligations under the schemes?
