As the freelance economy expands, digital nomads are redefining the traditional workspace. According to Eurostat, over 19 million professionals in the EU were classified as self-employed in early 2025, and a growing portion of them work remotely across borders. While flexibility is a major advantage, cross-border work comes with complexities, especially regarding Value-Added Tax (VAT).
One of the most frequent questions we receive at Freeberry is:
“Do I need a VAT number as a freelancer working remotely across Europe?”
Let’s break it down.
What Is a VAT Number and Why Does It Matter?
VAT (Value-Added Tax) is a consumption tax applied to goods and services in the European Union and many other countries. A VAT number is a unique identifier assigned to businesses and individuals who are registered for VAT in a particular country.
Having a VAT number allows freelancers to:
- Issue compliant invoices to VAT-registered clients
- Deduct input VAT on business expenses (if applicable)
- Avoid VAT being withheld by clients in certain cross-border transactions
- Appear more professional and credible to corporate clients
But not everyone must register for VAT.
🌍 VAT and Freelancers: Who Needs It?
Whether you need a VAT number depends on several factors:
| Scenario | Do You Need a VAT Number? |
| You’re earning below your local VAT threshold (e.g. €42,500 in Ireland, €25,000 in Belgium) and working with local clients | ❌ Not mandatory |
| You invoice clients in other EU countries and want to reverse-charge VAT | ✅ Recommended |
| You work with VAT-registered companies and want to be taken seriously as a business | ✅ Often expected |
| You use platforms that require a VAT ID to issue invoices (e.g. Upwork, Fiverr) | ✅ Usually required |
| You live outside the EU but serve EU clients | 🚫 Not required by EU, but local laws may apply |
💡 In 2025, most EU countries still allow freelancers to operate without a VAT number until they cross the annual revenue threshold.
| Member State | VAT Threshold for Services (€) | Notes (e.g., SME Scheme Implementation) |
| Ireland | 42,500 | Increased from €40,000 in 2024. Also participates in the EU SME scheme. |
| Belgium | 25,000 | National threshold. Also participates in the EU SME scheme with a €100,000 EU-wide threshold. |
| Germany | 22,000 (previous year) / 100,000 (current year) | Also participates in the EU SME scheme with a €100,000 EU-wide threshold. |
| France | 37,500 | Also participates in the EU SME scheme with a €100,000 EU-wide threshold. |
| Spain | No threshold | Mandatory registration for any taxable activity. Participates in the EU SME scheme with a €100,000 EU-wide threshold. |
| Italy | 85,000 (special regime) / No threshold | No general threshold, but a special regime for turnover under €85,000. Participates in the EU SME scheme with a €100,000 EU-wide threshold. |
| Netherlands | No threshold | Participates in the EU SME scheme with a €100,000 EU-wide threshold. |
🚀 Why Digital Nomads Register for VAT Even If It’s Not Required
- Professional Image: Having a VAT number signals to clients that you’re a legitimate service provider.
- Client Requirements: Some corporate clients only work with VAT-registered professionals.
- Reverse-Charge Mechanism: VAT registration allows you to avoid charging VAT on cross-border services within the EU.
- Platform Compliance: Many freelance platforms now require VAT info for tax compliance under EU DAC7 and similar regulations.
What If You Don’t Have a VAT Number?
Many freelancers and digital nomads prefer to keep things simple—especially if their income is modest or they’re just starting out. That’s where Freeberry comes in.
With Freeberry, you can:
- Send professional invoices (with or without VAT)
- Operate legally across borders without needing to register a business
- Comply with tax rules thanks to automatic EU invoicing logic
- Focus on your craft while we handle the paperwork
No need to get a VAT number unless you really want or need one.
✍️ Final Thoughts
In 2025, the answer to “Do I need a VAT number?” depends more on who you’re working with than where you are physically based. As a digital nomad, staying ahead of regulatory changes is part of running a smooth freelance operation.
Still not sure if VAT registration is right for you?
Our team at Freeberry is happy to help you navigate it, all from the comfort of your laptop.
🔗 Ready to invoice like a pro?
