Who handles VAT on my invoices — me or Juuli?
The short answer
When you invoice a client through Juuli's marketplace as a Freelancer, Juuli acts as the Merchant of Record (MoR). That means Juuli takes on the VAT and tax compliance for the invoice,* as well as its legal validity. You focus on your work — we handle the heavy lifting on the paperwork side.
*This covers VAT and the invoice's legal validity only. Your own income tax stays your responsibility — you declare and pay it to your local tax authority, and the rules vary from country to country. Juuli can't provide personal tax advice.
What "Merchant of Record" means for VAT
As Merchant of Record, Juuli issues the invoice to your client and is responsible for applying the correct VAT treatment and keeping the invoice compliant with the relevant rules. In practice this means:
- Juuli determines and applies the appropriate VAT/tax handling on the marketplace invoice.
- The invoice is issued in a legally valid format on your behalf.
- You don't have to calculate cross-border VAT rules yourself for each client.
Your own details — including your VAT number, where you have one — are shown on the invoice so it accurately reflects who provided the service.
What you're still responsible for
Juuli handling VAT on the invoice does not replace your personal tax obligations. You remain responsible for:
- Declaring and paying your own income tax to your local tax authority — this is separate from VAT (which Juuli handles for you on the invoice), and the rules vary by country.
- Your own personal or business tax filings and any registrations that apply to you.
- Keeping your profile details (such as your VAT number and address) accurate and up to date.
If you're unsure how your earnings should be reported where you live, we recommend speaking with a local tax advisor. Juuli can't give individual tax advice.
Who pays the service fee?
Juuli charges a service fee of 4.5% per invoice for the Merchant-of-Record service. When you create the invoice, you can choose whether you or your client pays this fee — it's a setting on the invoice itself.
| Item | Who handles it |
|---|---|
| VAT / tax compliance on the invoice | Juuli (Merchant of Record) |
| Legal validity of the invoice | Juuli (Merchant of Record) |
| Your personal income tax filing | You |
| Service fee (4.5% per invoice) | You or your client (your choice) |
Does this apply to every account type?
Merchant-of-Record invoicing is currently available for Freelancer accounts. Invoicing for Sole Trader and Company accounts is coming soon — until then, those account types can't issue marketplace invoices through Juuli.
Related: What is Merchant of Record — and how does Juuli use it for freelancers?, Does Juuli have hidden fees? Here's every cost, laid out
Still have questions? Email our support team at support@juuli.com — we're happy to walk you through how VAT is handled on your invoices. Please note that we can't provide personal tax advice.