Summary of key articles regarding invoicing obligations, content, and electronic invoicing within the EU VAT system (Articles 217-240 of the EU VAT Directive 2006/112/EC).
1. Introduction:
This document summarises the key provisions of the EU VAT Directive 2006/112/EC related to invoicing. It outlines the requirements for issuing invoices, their content, the rules surrounding electronic invoices, and simplification measures. These provisions are crucial for businesses operating within the EU as they dictate how VAT is accounted for and reported.
2. Key Themes and Articles:
- Definition of Electronic Invoice (Article 217):
- The directive provides a simple definition: “‘electronic invoice’ means an invoice that contains the information required in this Directive, and which has been issued and received in any electronic format.” This broad definition emphasizes the format-agnostic nature of electronic invoices, as long as the required information is present.
- Concept of Invoice (Article 218 & 219):
- Member States must accept both paper and electronic invoices, provided they meet the conditions laid out in the Chapter. Furthermore, any document that amends an original invoice is also treated as an invoice: “Any document or message that amends and refers specifically and unambiguously to the initial invoice shall be treated as an invoice.” This covers credit notes, debit notes, and other adjustments. Article 218(2) provides a potential derogation where Member States may mandate e-invoicing for taxable persons within their territory.
- Invoicing Rules & Responsibility (Article 219a & 220):
- The general rule is that invoicing is subject to the rules of the Member State where the supply of goods or services is deemed to be made. However, there are exceptions. Article 219a(2) outlines scenarios where the invoicing rules of the supplier’s Member State apply, particularly when the supplier is not established in the Member State where the supply is deemed to be made, or the customer is liable for VAT under reverse charge.
- Article 220 establishes the obligation to issue invoices for supplies to other taxable persons or non-taxable legal persons, certain supplies of goods, supplies of goods carried out in accordance with Article 138, and payments on account. There are exemptions for certain services (Article 135(1)(a)-(g)).
- Simplified Invoices (Article 220a & 226b):
- Member States must allow simplified invoices in certain cases, primarily when the invoice amount is below EUR 100, or when the invoice is an amending document. However, simplified invoices are not allowed for supplies of goods or services carried out in accordance with Article 220(1)(2), (3) or where the supplier is not established in the Member State where the VAT is due (and the customer is VAT liable). Article 226b specifies the minimum required details for simplified invoices: date of issue, identification of the supplier, identification of the goods/services, the VAT amount payable/calculation information, and a reference to the initial invoice if it’s an amending document.
- Time of Issue (Article 222):
- For supplies of goods under Article 138 (intra-Community supplies) or services where the customer is liable for VAT (under Article 196), the invoice must be issued by the 15th day of the month following the chargeable event. Member States can impose time limits for other supplies.
- Summary Invoices (Article 223):
- Member States must allow summary invoices, which detail several separate supplies of goods or services. “Member States shall allow taxable persons to issue summary invoices which detail several separate supplies of goods or services provided that VAT on the supplies mentioned in the summary invoice becomes chargeable during the same calendar month.”
- Self-Billing (Article 224):
- Invoices can be drawn up by the customer if there is a prior agreement with the supplier and a procedure for acceptance of each invoice.
- Content of Invoices (Article 226):
- This article specifies the mandatory details required on invoices, including:
- Date of issue
- Sequential number
- Supplier’s VAT identification number
- Customer’s VAT identification number (where applicable)
- Full names and addresses of supplier and customer
- Quantity and nature of goods/services
- Date of supply or payment on account (if different from the invoice date)
- Taxable amount per rate or exemption
- VAT rate applied
- VAT amount payable
- Specific mentions where applicable, such as “Self-billing”, “Reverse charge”, “Margin scheme”, or reference to exemptions.
- Article 226a allows taxable persons not established in the Member State where the tax is due to omit details regarding taxable amount, VAT rate and VAT amount where the customer is liable for payment of VAT, instead indicating the taxable amount by reference to the quantity or extent of the goods or services supplied.
- This article specifies the mandatory details required on invoices, including:
- Currency (Article 230):
- Invoices can be in any currency, but the VAT amount must be expressed in the national currency of the Member State.
- Acceptance of Electronic Invoices (Article 232):
- Generally, the use of electronic invoices is subject to acceptance by the recipient. However, Member States exercising the option in Article 218(2) (mandating e-invoicing) may remove the recipient’s right to refuse electronic invoices.
- Authenticity, Integrity and Legibility (Article 233):
- “The authenticity of the origin, the integrity of the content and the legibility of an invoice, whether on paper or in electronic form, shall be ensured from the point in time of issue until the end of the period for storage of the invoice.” The taxable person is responsible for ensuring these aspects, through business controls creating a reliable audit trail. Examples of technologies that can ensure authenticity and integrity include advanced electronic signatures and EDI.
- Simplification Measures (Article 238):
- Member States can allow only the information required in Article 226b (simplified invoices) to be entered on invoices where the amount of the invoice is higher than EUR 100 but not higher than EUR 400, or where commercial/administrative practice or technical conditions make it particularly difficult to comply with the full requirements. These simplifications are not permitted in scenarios described in Article 220(1)(2), (3) or where the supplier is not established in the Member State where VAT is due and the customer is VAT liable.
3. Implications for Businesses:
- Businesses must ensure their invoicing systems comply with the requirements of the EU VAT Directive and the specific implementations in each Member State where they operate.
- The provisions on electronic invoicing provide a framework for digitalising invoicing processes, but acceptance by recipients remains a key factor (unless Member States mandate e-invoicing).
- Maintaining the authenticity, integrity, and legibility of invoices is crucial for VAT compliance.
- Businesses should carefully consider the implications of using simplified invoices and ensure they meet the eligibility criteria.
4. Further Considerations:
- The directive is subject to ongoing interpretation and implementation by Member States and the European Court of Justice.
- Businesses should stay informed about any changes to the VAT rules in the countries where they operate.
- The report mentioned in Article 237 highlights the ongoing assessment of invoicing rules and potential future amendments.
This briefing document provides a high-level overview of the key invoicing provisions within the EU VAT Directive. Businesses should consult the full text of the directive and seek professional advice to ensure full compliance.
Text of the Articles (per June 1, 2025)
TITLE XI
OBLIGATIONS OF TAXABLE PERSONS AND CERTAIN NON-TAXABLE PERSONS
CHAPTER 3
Invoicing
Section 1
Definition
Article 217
For the purposes of this Directive, ‘electronic invoice’ means an invoice that contains the information required in this Directive, and which has been issued and received in any electronic format.
Section 2
Concept of invoice
Article 218
For the purposes of this Directive, Member States shall accept documents or messages on paper or in electronic form as invoices if they meet the conditions laid down in this Chapter.
- By way of derogation from paragraph 1, Member States may, according to the conditions they may lay down, impose the obligation to taxable persons established within their territory to issue electronic invoices for supplies of goods and services within their territory, other than those referred to in Article 262
Article 219
Any document or message that amends and refers specifically and unambiguously to the initial invoice shall be treated as an invoice.
Section 3
Issue of invoices
Article 219a
Invoicing shall be subject to the rules applying in the Member State in which the supply of goods or services is deemed to be made, in accordance with the provisions of Title V.
By way of derogation from paragraph 1, invoicing shall be subject to the following rules:
(a)
the rules applying in the Member State in which the supplier has established his business or has a fixed establishment from which the supply is made or, in the absence of such place of establishment or fixed establishment, the Member State where the supplier has his permanent address or usually resides, where:
(i)
the supplier is not established in the Member State in which the supply of goods or services is deemed to be made, in accordance with the provisions of Title V, or his establishment in that Member State does not intervene in the supply within the meaning of point (b) of Article 192a, and the person liable for the payment of the VAT is the person to whom the goods or services are supplied unless the customer issues the invoice (self-billing);
(ii)
the supply of goods or services is deemed not to be made within the Community, in accordance with the provisions of Title V;
(b)
the rules applying in the Member State where the supplier making use of one of the special schemes referred to in Chapter 6 of Title XII is identified.
Paragraphs 1 and 2 of this Article shall apply without prejudice to Articles 244 to 248.
Article 220
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;
(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.
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 220a
Member States shall allow taxable persons to issue a simplified invoice in any of the following cases:
(a)
where the amount of the invoice is not higher than EUR 100 or the equivalent in national currency;
(b)
where the invoice issued is a document or message treated as an invoice pursuant to Article 219;
(c)
where the taxable person is benefitting from the exemption for small enterprises provided for in Article 284.
Member States shall not allow taxable persons to issue a simplified invoice where invoices are required to be issued pursuant to points (2) and (3) of Article 220(1) or where the taxable supply of goods or services is carried out by a taxable person who is not established in the Member State in which the VAT is due, or whose establishment in that Member State does not intervene in the supply within the meaning of Article 192a, and the person liable for the payment of VAT is the person to whom the goods or services are supplied.
Article 221
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).
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.
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 at the preceding stage, pursuant to Article 98(2), Articles 105a and 132, Article 135(1), points (h) to (l), Articles 136, 371, 375, 376 and 377, Article 378(2), Article 379(2) and Articles 380 to 390c.
Article 222
For supplies of goods carried out in accordance with the conditions specified in Article 138 or for supplies of services for which VAT is payable by the customer pursuant to Article 196, an invoice shall be issued no later than on the fifteenth day of the month following that in which the chargeable event occurs.
For other supplies of goods or services Member States may impose time limits on taxable persons for the issue of invoices.
Article 223
Member States shall allow taxable persons to issue summary invoices which detail several separate supplies of goods or services provided that VAT on the supplies mentioned in the summary invoice becomes chargeable during the same calendar month.
Without prejudice to Article 222, Member States may allow summary invoices to include supplies for which VAT has become chargeable during a period of time longer than one calendar month.
Article 224
Invoices may be drawn up by the customer in respect of the supply to him, by a taxable person, of goods or services, where there is a prior agreement between the two parties and provided that a procedure exists for the acceptance of each invoice by the taxable person supplying the goods or services. Member State may require that such invoices be issued in the name and on behalf of the taxable person.
Article 225
Member States may impose specific conditions on taxable persons in cases where the third party, or the customer, who issues invoices is established in a country with which no legal instrument exists relating to mutual assistance similar in scope to that provided for in Directive 2010/24/EU ( 17 ) and Regulation (EC) No 1798/2003 ( 18 ).
Section 4
Content of invoices
Article 226
Without prejudice to the particular provisions laid down in this Directive, only the following details are required for VAT purposes on invoices issued pursuant to Articles 220 and 221:
(1)
the date of issue;
(2)
a sequential number, based on one or more series, which uniquely identifies the invoice;
(3)
the VAT identification number referred to in Article 214 under which the taxable person supplied the goods or services;
(4)
the customer’s VAT identification number, as referred to in Article 214, under which the customer received a supply of goods or services in respect of which he is liable for payment of VAT, or received a supply of goods as referred to in Article 138;
(5)
the full name and address of the taxable person and of the customer;
(6)
the quantity and nature of the goods supplied or the extent and nature of the services rendered;
(7)
the date on which the supply of goods or services was made or completed or the date on which the payment on account referred to in points (4) and (5) of Article 220 was made, in so far as that date can be determined and differs from the date of issue of the invoice;
(7a)
where the VAT becomes chargeable at the time when the payment is received in accordance with Article 66(b) and the right of deduction arises at the time the deductible tax becomes chargeable, the mention ‘Cash accounting’;
(8)
the taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit price;
(9)
the VAT rate applied;
(10)
the VAT amount payable, except where a special arrangement is applied under which, in accordance with this Directive, such a detail is excluded;
(10a)
where the customer receiving a supply issues the invoice instead of the supplier, the mention ‘Self-billing’;
(11)
in the case of an exemption, reference to the applicable provision of this Directive, or to the corresponding national provision, or any other reference indicating that the supply of goods or services is exempt;
(11a)
where the customer is liable for the payment of the VAT, the mention ‘Reverse charge’;
(12)
in the case of the supply of a new means of transport made in accordance with the conditions specified in Article 138(1) and (2)(a), the characteristics as identified in point (b) of Article 2(2);
(13)
where the margin scheme for travel agents is applied, the mention ‘Margin scheme — Travel agents’;
(14)
where one of the special arrangements applicable to second-hand goods, works of art, collectors’ items and antiques is applied, the mention ‘Margin scheme — Second-hand goods’; ‘Margin scheme — Works of art’ or ‘Margin scheme — Collector’s items and antiques’ respectively;
(15)
where the person liable for payment of VAT is a tax representative for the purposes of Article 204, the VAT identification number, referred to in Article 214, of that tax representative, together with his full name and address.
Article 226a
Where the invoice is issued by a taxable person, who is not established in the Member State where the tax is due or whose establishment in that Member State does not intervene in the supply within the meaning of Article 192a, and who is making a supply of goods or services to a customer who is liable for payment of VAT, the taxable person may omit the details referred to in points (8), (9) and (10) of Article 226 and instead indicate, by reference to the quantity or extent of the goods or services supplied and their nature, the taxable amount of those goods or services.
Article 226b
As regards simplified invoices issued pursuant to Article 220a and Article 221(1) and (2), Member States shall require at least the following details:
(a)
the date of issue;
(b)
identification of the taxable person supplying the goods or services;
(c)
identification of the type of goods or services supplied;
(d)
the VAT amount payable or the information needed to calculate it;
(e)
where the invoice issued is a document or message treated as an invoice pursuant to Article 219, specific and unambiguous reference to that initial invoice and the specific details which are being amended.
They may not require details on invoices other than those referred to in Articles 226, 227 and 230.
Article 227
Member States may require taxable persons established in their territory and supplying goods or services there to indicate the VAT identification number, referred to in Article 214, of the customer in cases other than those referred to in point (4) of Article 226.
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Article 229
Member States shall not require invoices to be signed.
Article 230
The amounts which appear on the invoice may be expressed in any currency, provided that the amount of VAT payable or to be adjusted is expressed in the national currency of the Member State, using the conversion rate mechanism provided for in Article 91.
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Section 5
Paper invoices and electronic invoices
Article 232
The use of an electronic invoice shall be subject to acceptance by the recipient.
- By way of derogation from paragraph 1, Member States which exercise the option foreseen in Article 218(2), may provide that the use of electronic invoices issued by taxable persons established within their territory shall not be subject to the acceptance of the recipient established in their territory.
Article 233
The authenticity of the origin, the integrity of the content and the legibility of an invoice, whether on paper or in electronic form, shall be ensured from the point in time of issue until the end of the period for storage of the invoice.
Each taxable person shall determine the way to ensure the authenticity of the origin, the integrity of the content and the legibility of the invoice. This may be achieved by any business controls which create a reliable audit trail between an invoice and a supply of goods or services.
‘Authenticity of the origin’ means the assurance of the identity of the supplier or the issuer of the invoice.
‘Integrity of the content’ means that the content required according to this Directive has not been altered.
Other than by way of the type of business controls described in paragraph 1, the following are examples of technologies that ensure the authenticity of the origin and the integrity of the content of an electronic invoice:
(a)
an advanced electronic signature within the meaning of point (2) of Article 2 of Directive 1999/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community framework for electronic signatures ( 19 ), based on a qualified certificate and created by a secure signature creation device, within the meaning of points (6) and (10) of Article 2 of Directive 1999/93/EC;
(b)
electronic data interchange (EDI), as defined in Article 2 of Annex 1 to Commission Recommendation 1994/820/EC of 19 October 1994 relating to the legal aspects of electronic data interchange ( 20 ), where the agreement relating to the exchange provides for the use of procedures guaranteeing the authenticity of the origin and integrity of the data.
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Article 235
Member States may lay down specific conditions for electronic invoices issued in respect of goods or services supplied in their territory from a country with which no legal instrument exists relating to mutual assistance similar in scope to that provided for in Directive 2010/24/EU and Regulation (EC) No 1798/2003.
Article 236
Where batches containing several electronic invoices are sent or made available to the same recipient, the details common to the individual invoices may be mentioned only once where, for each invoice, all the information is accessible.
Article 237
By 31 December 2016 at the latest, the Commission shall present to the European Parliament and the Council an overall assessment report, based on an independent economic study, on the impact of the invoicing rules applicable from 1 January 2013 and notably on the extent to which they have effectively led to a decrease in administrative burdens for businesses, accompanied where necessary by an appropriate proposal to amend the relevant rules.
Section 6
Simplification measures
Article 238
After consulting the VAT Committee, Member States may, in accordance with conditions which they may lay down, provide that in the following cases only the information required pursuant to Article 226b shall be entered on invoices in respect of supplies of goods or services:
(a)
where the amount of the invoice is higher than EUR 100 but not higher than EUR 400, or the equivalent in national currency;
(b)
where commercial or administrative practice in the business sector concerned or the technical conditions under which the invoices are issued make it particularly difficult to comply with all the obligations referred to in Article 226 or 230.
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The simplified arrangements provided for in paragraph 1 shall not be applied where invoices are required to be issued pursuant to points (2) and (3) of Article 220(1) or where the taxable supply of goods or services is carried out by a taxable person who is not established in the Member State in which the VAT is due or whose establishment in that Member State does not intervene in the supply within the meaning of Article 192a and the person liable for the payment of VAT is the person to whom the goods or services are supplied.
Article 239
In cases where Member States make use of the option under point (b) of the first subparagraph of Article 272(1) of not allocating a VAT identification number to taxable persons who do not carry out any of the transactions referred to in Articles 20, 21, 22, 33, 36, 138 and 141, and where the supplier or the customer has not been allocated an identification number of that type, another number called the tax reference number, as defined by the Member States concerned, shall be entered on the invoice instead.
Article 240
Where the taxable person has been allocated a VAT identification number, the Member States exercising the option under point (b) of the first subparagraph of Article 272(1) may also require the invoice to show the following:
(1)
in respect of the supply of services, as referred to in Articles 44, 47, 50, 53, 54 and 55, and the supply of goods, as referred to in Articles 138 and 141, the VAT identification number and the tax reference number of the supplier;
(2)
in respect of other supplies of goods or services, only the tax reference number of the supplier or only the VAT identification number.
