Invoicing without VAT: when is a VAT-free invoice allowed?
Updated on 18 July 2026 · 4 min read
Sometimes you put no VAT on your invoice, but the reason why determines what exactly you must state. "No VAT" can be the small business scheme, an exempt service, reverse-charged VAT or the zero rate. Here is how to know which applies.
Four reasons for an invoice without VAT
1. You use the KOR
Under the small business scheme you are exempt from VAT and put no VAT on your invoices, not even "0%". Many participants add a line such as "exempt from VAT under the small business scheme". Whether the KOR is smart for you is covered in the KOR: when is the small business scheme smart?.
2. You provide an exempt service
Some services are legally exempt from VAT regardless of your revenue: certain medical care, education, childcare and some financial and insurance services. If you fall under this, you charge no VAT and also cannot reclaim input VAT. State the exemption on the invoice.
3. The VAT is reverse-charged
For a business client in another EU country, or as a subcontractor in construction, you reverse-charge the VAT to your client. You put "btw verlegd" on the invoice plus the client's VAT number. See invoicing abroad.
4. The zero rate (0%)
For exporting goods outside the EU and some international services the zero rate applies: you charge 0% VAT, but unlike an exemption you keep your right to deduct input VAT.
Why the distinction matters
The difference is in your input VAT. With an exemption and the KOR you lose the VAT on your own business purchases. With reverse-charged VAT and the zero rate you keep your right to deduct. Factor that in before you choose, especially if you buy or invest a lot.
State the right note
An invoice without the right explanation raises questions from your client and their accountant. Make clear why there is no VAT on it. The other invoice requirements still apply.
In Finq you pick the right VAT treatment per invoice, including reverse-charged and exempt, and the matching note appears on the invoice automatically. See how invoicing works.