7 Best Tools for VAT-Compliant Invoicing in Europe

Let’s talk VAT. And yes, you have to.

Running a business in Europe without VAT compliance is like trying to play chess without knowing how the queen moves. You might survive for a few rounds, but sooner or later, the board bites back.

If you’re a freelancer sending invoices to Germany, or an e-commerce seller operating in three countries with one Stripe account, you probably already know: VAT is not just a percentage. It’s a system. With layers. With nuance. With country-specific rules.

You need a tool that understands that.

What makes an invoice “compliant” in Europe?

Before we jump into tools, let’s unpack what a compliant invoice even is.

An invoice isn’t just a “thank you for your purchase” note. It’s a legal document. It must be structured, detailed, and precise. Not optional. Not approximate. Here’s what it has to include (and this is not negotiable):

• Your business address and VAT number

• Your customer’s name and billing address

• A sequential invoice number

• The date of issue

• A clear description of goods or services

• Net amount

• VAT rate applied

• Total VAT

• Total including VAT

• Mention of reverse charge (if applicable)

• Reference to OSS/IOSS (if applicable)

• Proper digital format (Factur-X, FatturaPA, Peppol XML, and so on)

Sounds like a lot? That’s because it is. And doing it manually, consistently, and across countries? That’s how you burn out.

So let’s find a tool that makes this easier.

Theory and practice

Let’s think about this like Lego.

Compliance is your Lego building. Tools are your bricks. But not all bricks fit all builds.

Some tools are made for freelancers, others for large-scale operators. Some generate e-invoices with Factur-X, others offer a simple PDF. Some speak French, others Italian. And some try to speak all 24 EU languages but forget what “reverse charge” means.

You need the right tool for your type of VAT mess.

Let’s look at seven.

1. Sage FR – For serious builders with big blueprints

Imagine a Lego box for architects. That’s Sage.

It’s detailed, heavy, and built for businesses that don’t just send invoices—they structure them across departments.

What Sage gets right:

• Full VAT support across Europe

• PEPPOL and national e-invoice compatibility

• Handles multi-rate, multi-country, multi-warehouse invoicing

• Built-in audit reports and long-term invoice archiving

But…

• It’s not for quick fixes. Sage takes time to configure, and the UI hasn’t been modernised in a while.

• Not the best if you’re solo or small.

Use if: You need every brick in the box, including the tiny ones you only use once a year.

2. Acomim – For automated e-commerce invoicing (with brains)

Now imagine you’re not building a Lego castle by hand. You’re using a machine that assembles the castle for you, perfectly, brick by brick, based on your shop’s orders.

That’s Acomim.

Why it’s different:

• It was made for small e-commerce sellers in France and Belgium.

• It plugs directly into Amazon, Shopify, Cdiscount, Stripe.

• And it syncs with Pennylane, Abby, and other accounting tools used in France.

Bonus: There’s a free plan if you’re below 50 transactions/month.

Use if: You hate paperwork, love automation, and your accountant has asked you to “please stop sending screenshots of Shopify.”

3. Debitoor (SumUp Invoices) — For minimalists who invoice by hand

You don’t want a Lego city. You just want to build a neat little house.

Debitoor (now part of SumUp) is made for you. It’s simple. It’s clean. It does one thing: invoicing for small businesses, in a VAT-aware way.

What it does well:

• VAT fields per line

• EU-compliant invoice layout

• Multi-language, multi-currency

• Custom branding

• Easy exports for tax filing

Limitations:

• No automated e-invoicing

• No Factur-X or Peppol formats

• You do the sending, tracking, and compliance

Use if: You’re a solo operator who still likes to check every invoice before it goes out. Nothing wrong with that.

4. Zervant – For recurring, cross-border simplicity

Zervant is the invoicing tool you didn’t know came from Finland. But it works across the EU, and it’s surprisingly good at recurring invoices, multilingual documents, and general good taste.

It supports:

• Multiple VAT rates per invoice

• Reverse charge tagging

• Cross-border B2B invoicing

• Recurring schedules and reminders

Where it falls short:

• Doesn’t support structured e-invoice formats (e.g., Factur-X)

• No real accounting integration

• No automation for marketplaces or online platforms

Use if: You invoice manually, but often, and across different countries. And you like clean UX.

5. Pennylane – Where accounting meets invoicing in French

Let’s switch gears. You don’t want just invoicing – you want the whole back office in one place.

Enter Pennylane.

It gives you:

• Fully TVA-compliant invoicing with multi-line support

• Auto-generated VAT declarations

• Bank feeds and expense tracking

• Accountant collaboration features

• French interface, French support, French compliance

It’s not a plug-and-play for e-commerce (you’ll need a connector like Acomim), but it’s a solid core for finance operations.

Use if: You want to issue invoices, track cash flow, and file taxes in the same place. All in French.

6. Xero (with plugins) – The modular option

Xero is great. But it’s not made for Europe. That’s where plugins come in.

The toolkit:

• Use Xero for your base

• Add Acomim or Synder to sync transactions from Stripe or Amazon

• Add Datamolino for invoice scanning

• Use a local connector for e-invoicing (e.g. Chorus Pro exports)

Suddenly, Xero becomes your command centre – albeit with several moving parts.

Use if: You already use Xero globally and want to localise your invoicing in the EU without ditching your core.

7. InvoiceOcean – For custom setups that don’t break the bank

You want full control. You want custom fields, currency settings, VAT breakdowns, and a dashboard that feels built for you. InvoiceOcean delivers that.

Why it works:

• Configurable invoice layouts

• Reverse charge, OSS/IOSS support

• Multi-currency and multilingual templates

• Client and product management

• Decent export features (PDF, XML)

Where it stops:

• No built-in e-invoice export (yet)

• No full accounting functionality

• Not as “polished” as some other tools, but very functional

Use if: You’re detail-oriented and want to build your invoicing system, not just follow someone else’s template.

Recap: What kind of Lego builder are you?

Final thoughts

Invoicing in Europe in 2025 isn’t just about creating a nice-looking PDF. It’s about legal compliance. Tax alignment. E-invoice structures. And most of all – making sure your customer gets the invoice they need, and your accountant gets the report they want.

You don’t need to master VAT law. You just need to pick the right tool.

Choose one that fits your region, your model, and your growth plans.
And remember: the best invoicing system is the one that lets you spend less time invoicing – and more time building.