Does a contractor need to be registered as a business?

In most EU countries, yes — if the work is regular and for profit, some form of business registration is required. Otherwise it may be classified as undeclared work.

How does VAT work when paying a foreign contractor?

For cross-border B2B services within the EU, the reverse charge mechanism applies — the client self-assesses the VAT rather than the contractor charging it.

What if the contractor misses a deadline?

The contract should include a late-delivery penalty clause (e.g. 0.05 % of the price per day) and a right to terminate in case of a material breach.

How to resolve a dispute with a client without going to court?

We recommend agreeing mediation as the first step in the contract — it is faster and cheaper than litigation. The zipzipdoc audit trail serves as evidence of the signed content.

Employment

Freelancer (contractor) agreement

Freelancer contract — no chaos

Define scope, payment, confidentiality. Done in a minute.

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Contract Templates Service Agreement — Freelancer All templates

Freelancers with a signed contract get paid 11 days faster on average

45 % of freelancers reported a payment dispute in the last year when no contract was in place

Digital contracts cut engagement setup time by 80 %

For contractors without employee status. Service definition, payment terms, IP, confidentiality — all included.

Legal context

Contractor agreements fall under commercial law. In the EU, the contractor's tax and social-insurance status is governed by national law. Electronic contracts are valid under eIDAS across all EU member states.

eIDAS Art. 25(1) — an electronic signature shall not be denied legal effect

Legal basis & glossary

When to use a Freelancer (contractor) agreement

Before starting work with an external specialist
When you need to protect confidentiality of internal processes
For ongoing engagements beyond a single project
Before giving a contractor access to company systems

What you get

IP clauses
Payment terms and penalties
Confidentiality
Cancellation terms

How it works

From idea to signature

IP clauses

Payment terms and penalties

Confidentiality

FAQ

Frequently asked questions about Freelancer (contractor) agreement

A service agreement typically covers a specific deliverable. A contractor agreement can cover ongoing services without a defined output, such as consulting or system management.