Skip to main content

VAT Explained for Invoicing Sales

E
Written by Elvia Amelia
Updated over 12 months ago

VAT depends on your customer’s location and VAT status. Here's a general guide:

  1. Intra-EU Transactions (Other than Estonia):
    If your customer has a valid VAT number, VAT is generally 0% due to the reverse-charge mechanism.

  2. Estonia:
    For customers in Estonia, apply the local VAT rate of 22%, regardless of their VAT status.

  3. EU (Without a Valid VAT Number):
    If the customer is in another EU country without a valid VAT number, you must apply the 22% VAT rate from Estonia.

  4. Non-EU Customers:
    If your customer is outside the EU, VAT is generally 0%.

You can verify the validity of your customer’s VAT number using the VIES (VAT Information Exchange System) database.

Did this answer your question?