Every taxable person must issue an invoice where supplies are made to another taxable person and to non-taxable legal person, a payment on account is made for one of the above supplies and where distance selling provisions apply.
Member States can impose the obligation to issue invoices for other transactions to the extent these take place on their territory. The invoices have to include all mandatory mentions stated in the VAT Directive.

The second VAT Directive on VAT invoicing has been implemented in all Members States since 01/01/2013. It aims to promote and further simplify invoicing rules by removing existing burdens and barriers. It establishes equal treatment between paper and electronic invoices without increasing the administrative burden on paper invoices and has the aim to promote the uptake of e-invoicing by allowing freedom of choice regarding the invoicing method. For a clear understanding of the main VAT invoicing rule changes as from 1 January 2013 a set of Explanatory notes has been written in 21 languages.

Every taxable person must keep accounts in sufficient details for VAT to be applied and its application checked by the tax authorities.

Recapitulative statement of exempt IC supplies of goods and services ("European Sales List")

Every taxable person must submit recapitulative statements where exempt intra-Community supplies of goods and, from January 1st, 2010, intra-Community supplies of services for which the recipient is liable to pay the tax, are made.
A recapitulative statement must be drawn up for each calendar month within a period not exceeding one month and in accordance with procedure to be determined by each Member State.

Derogation: However, Member States may allow taxable persons to submit the recapitulative statement for each calendar quarter within a time limit not exceeding one month from the end of the quarter, where the total quarterly amount, excluding VAT for supplies of goods, does not exceed either in respect of the quarter concerned or in respect of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. This option will cease to be applicable after the end of the month during which the total value, excluding VAT, of the supplies of goods exceeds, in respect of the current quarter, the sum of € 50.000 or its equivalent in national currency. In this case, a recapitulative statement must be drawn up for the month(s) which has (have) elapsed since the beginning of the quarter, within a time limit not exceeding one month.

Recapitulative statement of IC acquisitions of goods ("European Purchases List")

Member States may require that taxable persons who, in their territory, make intra-EU acquisitions of goods, or transactions treated as such, submit statements giving details of such acquisitions, provided, nevertheless, that such statements are not required in respect of a period of less than one month [art. 268 of the VAT Directive].Every taxable person must submit recapitulative statements where exempt intra-Community supplies of goods and, from January 1st, 2010, intra-Community supplies of services for which the recipient is liable to pay the tax, are made. European Purchases List is required notably in Poland, Spain, Hungary and Latvia.

Annual Sales & Purchases Lists

Member States may impose other obligations which they deem necessary to ensure the correct collection of VAT and prevent evasion, subject to the requirement of equal treatment as between domestic transactions and transactions carried out between Member States by taxable persons. Some countries (Portugal, Spain, Italy and Czech Republic) require annual listing reporting all purchases and sales with local VAT registered companies. Belgium also requires annual sales listing but only for sales to VAT registered customers.