1. Register correctly
Most countries require freelancers to register with the tax office and, in many cases, with a social security body or chamber. Registration rules and deadlines differ, so check your country's official website before your first invoice.
2. Issue proper invoices
An invoice normally needs your details, the client's details, a unique invoice number, the date, a description of the service, the amount and any VAT. Rules for cross-border invoices to businesses in other EU countries can differ, for example the reverse charge. Use our VAT calculator to check amounts.
3. Separate business and personal money
Open a separate account for business income and expenses. It makes bookkeeping easier and helps if the tax office asks questions.
4. Track deductible expenses
Keep receipts for equipment, software, travel, training and a home office where allowed. Only business-related costs are deductible, and the rules differ per country.
5. Set money aside for tax
Transfer a fixed share of every payment to a savings account for income tax, social contributions and VAT. Our freelancer tax calculator gives a first estimate of how much to put aside.
6. Know your deadlines
Tax returns, VAT returns and advance payments have set dates. Put them in your calendar, and consider an accountant if your situation is complex.