Question 1

What is EU VAT Directive 2006/112/EC?

Accepted Answer

The EU VAT Directive 2006/112/EC is the primary EU legislation governing Value Added Tax (VAT) across all EU member states. It establishes the common system of VAT, rules for taxable transactions, VAT rates, exemptions, and compliance requirements for businesses operating within the European Union.

Question 2

What is the Reverse Charge mechanism?

Accepted Answer

Reverse Charge is a B2B VAT mechanism for intra-EU transactions where the customer (not the supplier) accounts for VAT. It applies when both parties are VAT-registered in different EU countries. The supplier issues an invoice with 0% VAT and includes the compliance note as per Article 196 of the VAT Directive.

Question 3

What is Intra-Community Supply of Goods?

Accepted Answer

Intra-Community Supply refers to the movement of goods from one EU member state to another for business purposes. It's VAT-exempt (0% rate) when the customer has a valid VAT ID and proof of transport is obtained. The supplier must keep documentation for at least 10 years.

Question 4

What is the Distance Selling threshold?

Accepted Answer

Distance Selling applies to B2C cross-border sales within the EU. The threshold is €10,000 per year per destination country. Once exceeded, you must register for VAT in the customer's country and charge their local VAT rate. Alternatively, you can register for the OSS scheme to simplify reporting.

Question 5

What is OSS (One-Stop Shop)?

Accepted Answer

OSS (One-Stop Shop) is a simplified VAT scheme for businesses selling to consumers across multiple EU countries. Instead of registering in each country, you register once in your home country and submit a single quarterly VAT return covering all EU sales. It's particularly useful for e-commerce and digital services.

Question 6

What is IOSS (Import One-Stop Shop)?

Accepted Answer

IOSS is a scheme for distance sales of imported goods valued up to €150. It allows sellers and marketplaces to collect VAT at the point of sale and declare it through a monthly return. This simplifies customs clearance and ensures VAT compliance for imports into the EU.

Question 7

What is Call-off Stock and why is it being phased out?

Accepted Answer

Call-off Stock allows businesses to move goods to another EU country before the sale, with VAT deferred until the goods are called off. Under ViDA (VAT in the Digital Age) reforms from 2025, the simplified reporting for Call-off Stock is being phased out to standardize cross-border transactions.

Question 8

Is EUINVOICE GEN free to use?

Accepted Answer

Yes, EUINVOICE GEN is completely free to use with no hidden fees. You can generate unlimited invoices with full EU VAT compliance features including all VAT mechanisms (Reverse Charge, OSS, IOSS, Distance Selling, etc.). Some advanced features like automated Distance Selling threshold tracking may be offered as premium features in the future.

Question 9

What languages does EUINVOICE GEN support?

Accepted Answer

EUINVOICE GEN supports 8 languages: English, German (Deutsch), French (Français), Spanish (Español), Italian (Italiano), Dutch (Nederlands), Polish (Polski), and Portuguese (Português). This ensures accessibility for businesses across the European Union.

Question 10

Can I export invoices as PDF?

Accepted Answer

Yes, all invoices can be exported as professional A4 PDF documents with full compliance notes, VAT breakdown, and your company branding. PDFs include all required information according to EU VAT Directive 2006/112/EC and can be printed or sent directly to clients.

Free EU Invoice Generator – Compliant VAT PDF Invoices