How to Invoice a Company Without a Formal Business:  A Simple Guide for Freelancers and Solopreneurs 

Freelancing in the European Union is on the rise, offering more professionals the freedom to work on their terms without the constraints of a traditional office. But with this freedom comes certain challenges—especially when it comes to VAT invoicing, taxes, and ensuring compliance as a solopreneur. 

Many freelancers ask, “How do I invoice as a freelancer?” or “How can I invoice as a company?” These questions can seem overwhelming, but with the right tools, like Freeberry, managing your freelance invoicing and taxes becomes straightforward. 

In this comprehensive guide for EU freelancers, we’ll break down the essentials of invoicing, guide you through obtaining a VAT number, and introduce you to tools that make freelance invoicing quick and effortless. Whether you’re just starting or looking to streamline your freelance business, this guide will help you navigate the European freelance landscape with ease. 

Let’s get started on simplifying your freelance finances! 

Why Do I Need to Invoice as a Freelancer? 

Invoicing is a critical part of freelancing, not just a formality. Here’s why every freelancer should issue professional invoices: 

• Proof of Work: A freelance invoice serves as a legal record of the services or products you’ve provided. It details what was delivered, when, and for how much—offering clear documentation that protects both you and your client. 

• Tax Compliance: Invoices are essential for tracking your income and are crucial during tax filing. They help you claim deductions and expenses, and in some countries, freelancers are required to retain invoices for up to seven years. 

• Professionalism & Trust: A well-designed, accurate invoice enhances your credibility. It reflects professionalism, increasing client trust and solidifying your reputation in the freelance market. 

Freelance Invoicing: Common Challenges 

Invoicing as a freelancer can present several challenges, especially when dealing with taxes, international clients, and adhering to various national and banking regulations. Below are some of the most common problems freelancers encounter: 

• VAT Calculation 

Many companies prefer to work with freelancers who can include Value Added Tax (VAT) in their invoices. VAT rates vary across countries, and it’s up to the freelancer to calculate and apply the correct rate. If you’re working with clients from multiple countries, this can become particularly complicated as VAT regulations differ widely across borders. 

Managing VAT doesn’t have to be a headache, though. Thanks to modern invoicing solutions, even freelancers without an established company can issue VAT-compliant invoices effortlessly. Tools like Freeberry or similar invoicing platforms automatically calculate VAT and ensure that your invoices meet the legal requirements of the client’s country—helping you save time and avoid errors. 

• Overdue Payments 

In an ideal world, every client would pay on time, but the reality is far less predictable. Dealing with overdue payments can be uncomfortable and stressful, especially when it’s a client you value and don’t want to risk upsetting. Chasing overdue payments drains your energy and takes time away from focusing on new projects. 

Unfortunately, no freelancer is immune to this issue, but there are strategies to help navigate it. If you find yourself in this situation, we recommend checking out this helpful resource: 12 Tips for Navigating a Past Due Payment. These tips will guide you on approaching clients professionally and ensuring you receive the payments you’ve earned—without damaging important relationships. 

• Tracking Your Invoices 

As your freelance business grows, so does the volume of paperwork. With multiple projects running simultaneously, keeping track of paid and unpaid invoices can quickly become overwhelming. Missing payments or overlooking outstanding invoices can impact your cash flow and lead to confusion, especially if you’re juggling clients across different time zones or currencies. 

Without a reliable system, you may find yourself spending valuable hours manually tracking down payments, following up with clients, and reconciling your records. The risk of error increases, and the administrative burden can take a toll on your productivity. This is why it’s essential to have an efficient invoicing solution in place—one that allows you to stay organized, avoid missed payments, and focus on growing your business instead of getting bogged down by paperwork. 

📌 Important Invoice Details You Don’t Want to Miss

An invoice is more than just a payment request—it’s a formal, legal document that establishes a record of the transaction between a service provider and a client. Failing to include key details can lead to delays in payment, misunderstandings, or even disputes. Whether you’re a freelancer, contractor, or small business owner, ensuring your invoices are comprehensive and professional is critical for maintaining trust and a smooth business relationship with clients. 

At a minimum, your invoice should include essential information about both parties involved—the service or product provider (you) and the company that hires you. Here are some key elements you should never leave out: 

☑️ Your Business Information: This includes your name (or business name if applicable), address, and contact details. If you’re VAT-registered, make sure to include your VAT number. 

☑️ Client Information: Clearly state the client’s name, business name, and contact information. This ensures the invoice is directed to the right person or department, reducing the risk of payment delays. 

☑️ Unique Invoice Number: Assigning a unique invoice number to each invoice helps you keep track of your billing history and allows your clients to easily reference specific payments. 

☑️ Description of Services or Products: Provide a detailed breakdown of the services rendered or products delivered. Vague descriptions can confuse, so it’s important to be clear and precise.  

For example, instead of writing “Consulting services,” specify “10 hours of strategic consulting for [specific project].” 

☑️ Dates: Include the date the invoice is issued and the due date for payment. Some clients operate on strict payment cycles, and providing clear timelines will help you get paid on time. 

☑️ Payment Terms: Specify your payment terms, including accepted payment methods (bank transfer, PayPal, etc.) and any late payment fees or early payment discounts, if applicable. 

☑️ VAT and Other Taxes: If you’re charging VAT, include the VAT rate and total amount, along with a breakdown of how it was calculated. This is especially important for EU-based freelancers dealing with international clients. 

☑️ Total Amount Due: Finally, make sure the total amount due is clearly stated at the bottom of the invoice. Double-check your calculations to avoid any discrepancies. 

📢 Missing out on these details can lead to delayed payments, confusion, or disputes, so it’s crucial to ensure your invoice is accurate and complete.  

Let’s take a closer look at a template provided by Freeberry, which includes all these critical elements and simplifies the invoicing process for freelancers. 

So, How Do I Invoice Without a Company? 

The answer is simple: find a solution that handles the invoicing, VAT, and payments for you—without the need to open and maintain a company.  

Freeberry is your reliable partner in this process, providing a streamlined system that allows freelancers, solopreneurs, and independent contractors to send invoices and manage their payments without needing to establish a formal business entity. 

With Freeberry, you can send professional, VAT-compliant invoices instantly, bypassing the complicated paperwork typically involved with setting up a company. This platform simplifies everything from invoice creation to tax and VAT handling, making it easy for freelancers across the EU to focus on their work, while Freeberry takes care of the administrative details. 

Why join Freeberry?

There are several reasons why you would benefit from joining Freeberry.  

• Free from paperwork – No need to spend time and resources on bureaucratic work – Freeberry will handle invoicing, VAT, and taxes, giving you full control of your checks. 

• User-Friendly interface – Set up your account in less time than it takes to prepare your coffee and track all your payments in one place. 

• Legal Compliance – Invoices sent via Freeberry adhere to EU regulations, including all required tax and VAT details. This ensures legal compliance, safeguarding you from potential issues and allowing for smooth operations without the burden of legal concerns. 

• VAT Automation – Freeberry automatically calculates and applies the correct VAT for your invoices based on your client’s location and the type of service provided. 

• No Hidden Costs – The platform offers a transparent and simple fee structure with no extra charges or unpleasant surprises. Freeberry charges a small flat rate for every transaction, allowing you to get paid profitably and predictably. 

• Secure and Fast Payments – Freeberry ensures that all your payments are processed securely and on time, integrated with trusted payment gateways, so you can accept payments via preferred payment methods. 

Freeberry – Invoice like a company, work like a freelancer. 

Our platform takes care of all your paperwork, allowing you to focus more on your projects. With its user-friendly interface, you can easily keep track of your paid and unpaid invoices and send new ones that meet all legal requirements.  

By using Freeberry, freelancers can avoid the complexities of creating and managing a company while still enjoying the benefits of professional invoicing, tax compliance, and secure payments. Freeberry is the perfect solution for anyone wanting to simplify their freelance financial management. 

Create a free account now and enjoy an elevated freelance experience! 🚀