Sending invoices as a small business (SME) can be confusing, especially when you are just starting out. At Freeberry, we’ve been there and realised that we could use our 15 years of experience to help small businesses send VAT-compliant invoices quickly, conveniently and professionally.
The purpose of this article is to shed light on invoicing as a small business process and to provide you with sufficient information and tools to create your own invoices and how to create VAT deductible invoices even if you are not a VAT payer.
Sending invoices as a small business owner in the EU
Being an entrepreneur offers freedom, but it also comes with the responsibility of complying with legal regulations—especially when it comes to invoicing. To stay competitive, you need to carefully calculate your costs and ensure your services or products not only bring you a satisfying profit but also offer value to your clients. Crafting professional and compliant invoices is essential to maintain trust and streamline payments, making your business a reliable partner for companies across the EU.
You might be wondering if I can send invoices with 0% VAT for the companies. Or maybe you are thinking about how to deduct the VAT if you are not a VAT-registered small business owner.
Understanding VAT and Invoicing as a Small Business (SME)
In general, most businesses are required to obtain a tax identification number (TIN) or VAT ID, which allows you to issue invoices to other businesses and avoid the issue of double taxation.
For example, in Estonia, if your annual turnover exceeds €40,000, you must register your business for VAT and obtain a VAT ID. But what if your income is below that threshold and a client request a VAT-free invoice? Don’t worry—there are ways to handle this situation.
Two Common Scenarios for Small Business Invoicing:
- Register as a VAT Payer:
If you decide to register for VAT, even if you’re below the threshold, you’ll need to familiarize yourself with VAT reporting and accounting requirements. While this can allow you to provide VAT-compliant invoices, it also means more administrative work, such as filing tax returns and annual reports. Hiring an accountant or using accounting software may be necessary. The most desirable countries to run your online businesses are outlined in the article: TOP European countries for Freelancers.
- Use an Invoicing Solution like Freeberry:
If you prefer to avoid the complexities of VAT registration, a solution like Freeberry can be the perfect alternative. With Freeberry, you can use a virtual company to issue invoices that comply with VAT regulations, even if you’re not VAT-registered.
Freeberry takes care of the VAT requirements for you, and you only pay a flat 5% fee on processed payments—saving you time, money, and effort.
Both options are great and depending on your preferences, Freeberry can help you with both scenarios and further provide comprehensive support and consultation.
Key Benefits of Using Freeberry for Invoicing
- No Need for VAT Registration: Freeberry allows you to invoice companies without having to register for VAT yourself, while still being able to offer VAT-compliant invoices.
- Simple Invoicing Process: Our platform lets you create and send professional invoices in minutes, ensuring accuracy and compliance with VAT regulations.
- Transparent and Fair Pricing: You pay only a 5% flat fee when payments are processed—no hidden charges or complicated fee structures.
- Streamlined Business Management: Freeberry’s dashboard helps you manage all your invoices in one place, track payments, and even send reminders for unpaid bills, keeping your finances organized and stress-free.
How Freeberry Can Help Your Business Grow
Whether you’re a freelancer, small business owner, or just starting your entrepreneurial journey, Freeberry simplifies the invoicing process and allows you to focus on what matters most: growing your business. You’ll save time and avoid the hassle of setting up your own VAT structure while still providing your clients with professional, VAT-compliant invoices.
Create Your Free Account Today and Start Sending Invoices Like a Pro!