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EU Compliance in docs101

docs101 generates invoices in ZUGFeRD/Factur-X format — a hybrid PDF with embedded EN 16931-compliant XML. This page covers the standards behind that format and what you need to configure for your business. For a detailed breakdown of which countries are supported, see Country Availability & E-Invoicing Requirements.

Standards and Regulations​

docs101 is designed to comply with:

  • EN 16931 — The European standard for electronic invoicing, defining the structure and content of compliant e-invoices. This is the standard that ZUGFeRD/Factur-X implements.
  • Directive 2014/55/EU — EU regulation mandating that all public sector entities accept e-invoices in an EN 16931-compliant format.

Both standards require invoices to contain specific data elements and follow structured formats — which docs101 handles automatically through its ZUGFeRD/Factur-X implementation.

What docs101 Handles Automatically​

When you create an invoice in docs101, the system automatically ensures:

  • EN 16931-compliant XML — The embedded ZUGFeRD/Factur-X XML follows the EN 16931 schema and is validated via KOSiT
  • Required data elements — All mandatory fields are included (invoice number, dates, amounts, party information)
  • VAT categorization — Line items are assigned the correct VAT category:
    • S — Standard rate
    • Z — Zero-rated
    • E — Exempt (also used for small business exemption)
    • AE — Reverse charge
    • K — Intra-community supply
    • G — Export (outside EU)
    • O — Not subject to VAT
  • Currency handling — Invoices use the currency you specify with VAT amounts calculated correctly
  • Payment terms — Due dates and payment conditions are embedded in the XML
  • VIES VAT number validation — Customer EU VAT numbers are verified against the official VIES (VAT Information Exchange System) database to confirm they are valid and active
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Every invoice generated by docs101 is validated against EN 16931 using the KOSiT validator before it is finalized. This ensures structural and business-rule compliance automatically.

What You Need to Configure​

1. Company Profile​

Navigate to Administration > Company Setup and ensure:

  • Company name, address, and business location match your official registration
  • VAT number (Umsatzsteuer-ID / VAT ID) is entered correctly
  • Country is set correctly (this determines default VAT rates)
  • Director name and other required fields are complete
  • Business registration details (TIN, commercial register number) are accurate

See Company Setup for detailed instructions.

2. VAT Configuration​

docs101 applies VAT based on:

  • Your company's country — Different countries have different standard and reduced rates
  • Customer's country — Intra-community supplies, reverse charge, and export sales require different categorization
  • Line item VAT rate — You assign this when creating products or invoicing

Standard and reduced VAT rates for each EU country are pre-configured in docs101. Review your settings to ensure accuracy:

  • Standard rate (S): The normal VAT rate for your country
  • Reduced rates: For specific goods/services (varies by country)
  • Zero-rated (Z): For exports outside the EU
  • Exempt (E): For exempt supplies (e.g., financial services)
  • Reverse charge (AE): For certain B2B cross-border supplies where the buyer accounts for VAT
  • Intra-community (K): For supplies between EU businesses with valid VAT numbers
  • Export (G): For goods shipped outside the EU
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If you sell across multiple EU countries, ensure each customer's country is set correctly on their profile. This directly affects VAT categorization on invoices.

3. Reverse Charge​

Reverse charge applies when you supply services or goods to a business in another EU country and the customer has a valid VAT number. In this case:

  • docs101 sets the VAT category to AE (reverse charge)
  • No VAT is charged on the invoice
  • The buyer is responsible for accounting for VAT in their country
  • The customer's VAT number is validated via VIES to confirm eligibility

docs101 handles this categorization automatically based on the seller country, buyer country, and the buyer's VAT number status.

4. Bank Account Details​

For B2B invoices, bank details are often required. Configure in Administration > Bank Accounts:

  • Set a default bank account (used on all invoices)
  • Include IBAN, BIC, account holder name, and country
  • Verify the currency matches your invoicing currency

See Bank Accounts for details.

5. Country-Specific Requirements​

For a complete overview of which countries docs101 supports, where it works without restrictions, and where national e-invoicing mandates apply, see the Country Availability & E-Invoicing Requirements guide.

Key country-specific configuration notes:

  • Germany: Ensure VAT number format is correct (DE followed by 9 digits). Invoices to private customers require your commercial register number (Handelsregisternummer). Small business exemption (Kleinunternehmerregelung) available under Section 19 UStG.
  • France: Invoices must include the order reference if available. SIRET number (business identifier) is often required. VAT number format: FR followed by 11 alphanumeric characters.
  • Other countries: Consult your local tax authority or accountant for country-specific requirements. Ensure customer tax IDs are correctly formatted and VAT rates match the current country rates.

6. Small Business Exemption​

If your country offers a VAT exemption for small businesses:

  1. Go to Administration > Company Setup
  2. Enable "Small Business Exemption" if you qualify
  3. docs101 will automatically assign the "Small business" tax treatment (VAT category E, 0%) to all invoice positions
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Enabling the small business exemption may affect customer requirements — some customers cannot accept zero-VAT invoices. Verify with each customer before enabling.

Validation and Verification​

Every invoice in docs101 is validated against EN 16931 before being finalized. If there is an issue:

  • You see an error message with details on what is missing or incorrect
  • Fix the issue in the invoice editor
  • The system validates again when you save

For additional verification:

  • Use the PDF Validation Tool to validate any ZUGFeRD/Factur-X PDF
  • Download invoices and verify with external ZUGFeRD validators
  • Share invoices with your tax advisor — they can verify compliance in their accounting software

Staying Compliant Over Time​

EU regulations and VAT rates change occasionally. To stay compliant:

  1. Monitor VAT rate changes — When your country updates VAT rates, update your configuration in docs101
  2. Review invoices regularly — Spot-check invoices for accuracy and completeness
  3. Work with your accountant — Share invoices regularly and ask for feedback on compliance
  4. Keep docs101 updated — Updates are released to reflect new regulations; keep your account current

Common Issues and Solutions​

Issue: "Invalid VAT number format"

  • Verify your VAT number matches your country's format. Each country has specific VAT ID formats (e.g., DE followed by 9 digits for Germany).

Issue: "Missing required field"

  • Check that your company profile and customer profile are complete. EN 16931 requires specific fields like address, business identifier, and VAT information.

Issue: "Incorrect VAT category"

  • Verify the customer's country and VAT number. Intra-community and export sales require different VAT categories than domestic sales.

Issue: "VIES validation failed"

  • The customer's VAT number may be invalid, inactive, or not yet registered in the VIES database. Contact the customer to confirm their VAT number.

Resources​

Next: Learn how the PDF Validation Tool can help you verify any ZUGFeRD/Factur-X invoice.