TiBook
Free Tool

VAT Generator

Generate VAT invoices with accurate tax calculations. Calculate VAT amounts and create professional VAT invoices.

Business Information
Customer Information
Invoice Details
VAT Calculation
VAT Invoice Preview

Enter an amount to generate VAT invoice

Understanding VAT: European Union Tax System

Value Added Tax (VAT) is a consumption tax used across the European Union and many other countries. Understanding VAT calculation and invoice requirements is essential for businesses operating in EU member states.

🇪🇺 European Union VAT Facts & Requirements

VAT Registration Thresholds (2025)

  • Germany: €22,000 annual turnover
  • France: €85,800 for goods, €34,400 for services
  • Italy: €65,000 annual turnover
  • Spain: No threshold - mandatory registration
  • UK (post-Brexit): £85,000 annual turnover
  • Ireland: €75,000 for goods, €37,500 for services

Standard VAT Rates in EU (2025)

  • 20-27%: Most EU countries use rates between 20-27%
  • Germany: 19% standard rate, 7% reduced rate
  • France: 20% standard rate, 5.5% and 10% reduced rates
  • Italy: 22% standard rate, 10% and 5% reduced rates
  • Spain: 21% standard rate, 10% and 4% reduced rates
  • Hungary: 27% (highest in EU)

VAT Invoice Requirements

EU VAT invoices must include:

  • Supplier's name, address, and VAT number
  • Customer's name and address (VAT number for B2B)
  • Invoice number and date
  • Description of goods/services
  • Net amount, VAT rate, VAT amount, and gross total
  • Currency (if different from local currency)

Digital Invoicing Requirements

  • Italy: E-invoicing mandatory for B2B transactions since 2019
  • Spain: E-invoicing mandatory for large businesses from 2025
  • Poland: E-invoicing mandatory from 2024
  • France: E-invoicing mandatory for large businesses from 2024, all businesses from 2026

VAT Return Filing

  • Most EU countries require monthly or quarterly VAT returns
  • Deadlines vary: typically 15-25 days after period end
  • Late filing penalties: €50-€25,000 depending on country and delay
  • VAT MOSS (Mini One Stop Shop) for digital services across EU

Why Accurate VAT Calculation Matters

  • ✓Compliance: Incorrect VAT can lead to penalties, interest charges, and VAT disallowance
  • ✓Input VAT Recovery: Accurate calculation ensures proper recovery of input VAT on business expenses
  • ✓Cross-Border Trade: Proper VAT handling is crucial for intra-EU and international transactions
  • ✓Audit Protection: Well-documented VAT invoices reduce audit risk and simplify compliance checks