Service Agreement in the EU: Template, Clauses and Local Law (2026)

What is a service agreement in the EU, and which law governs it? A service agreement in the EU is a contract in which a provider performs services for a client for a fee. The key thing to understand first is that there is no single European contract law. Each member state has its own civil or common law of contract, so an "EU service agreement" is really a national-law contract that pays attention to the EU rules that cut across borders: which country's law applies, which courts hear disputes, how VAT works, and how personal data is handled. Two EU regulations do most of the cross-border work. The Rome I Regulation decides which country's law governs the contract. The Brussels regime decides which courts have jurisdiction. Both let the parties choose, within limits, which is why a clear governing-law clause and a clear jurisdiction clause matter so much in a cross-border deal. This article is general guidance, not legal advice. Contract, tax and data rules differ by member state and change, so have a qualified professional review an agreement before you rely on it. Last verified October 2026. ## EU service agreement template Copy the block below and fill the bracketed fields. ```

SERVICE AGREEMENT This Service Agreement (the "Agreement") is made on [DATE] BETWEEN: [CLIENT NAME], of [country / address] (the "Client") AND [PROVIDER NAME], of [country / address] (the "Provider") 1. SERVICES The Provider will perform the services set out in Annex 1 (the "Services") with reasonable skill and care. 2. TERM This Agreement runs from [START DATE] for [fixed term / until complete], and may be renewed by [written agreement]. 3. FEES AND VAT The Client will pay [fee / rate], invoiced [schedule] and due within [N] days. Fees are exclusive of VAT. VAT is handled under the place-of-supply rules; for cross-border B2B services the Client accounts for VAT by reverse charge where it applies, and both parties state their VAT numbers. 4. INTELLECTUAL PROPERTY Deliverables created under this Agreement transfer to the Client on full payment, so far as national law allows that transfer, and the Provider keeps its pre-existing materials and licenses them for use in the deliverables. 5. CONFIDENTIALITY Each party keeps the other's confidential information secret and uses it only for this Agreement. 6. DATA PROTECTION Where either party processes personal data, it complies with the GDPR, and if the Provider processes personal data on the Client's behalf the parties sign a data processing agreement under Article 28. 7. LIABILITY To the extent national law allows, neither party is liable for indirect loss, and the Provider's liability is capped at [the fees paid]. Nothing limits liability that cannot be limited by law. 8. TERMINATION Either party may end this Agreement on [N] days notice, or for material breach not cured within [N] days. 9. GOVERNING LAW AND JURISDICTION This Agreement is governed by the law of [MEMBER STATE]. The courts of [MEMBER STATE] have [exclusive / non-exclusive] jurisdiction. Signed for the Client: __________ Signed for the Provider: __________ Name / title / date Name / title / date

- **Fees and VAT (clause 3).** Make fees exclusive of VAT and handle VAT separately from governing law, because Rome I does not decide tax. For business-to-business services supplied across borders, the general rule places the supply where the customer is established, and the customer accounts for VAT by reverse charge, so neither side charges VAT on the invoice when both hold valid VAT numbers. Watch the exceptions: services connected to land are taxed where the land is, and some services (such as events or catering) follow their own rules.
- **Intellectual property (clause 4).** How far you can assign rights, and whether moral rights survive, depends on national law. Draft a full assignment, then let the provider keep and license its pre-existing material.
- **Data protection (clause 6).** If personal data is involved, the GDPR applies across the EU. Where the provider processes data for the client, add an Article 28 data processing agreement.
- **Governing law and jurisdiction (clause 9).** Under Rome I, for a business-to-business contract the parties' choice of law comes first. If you choose nothing, the default for a service contract is the law of the country where the provider is based. The Brussels regime handles which courts hear a dispute, so set both clauses, not just one. ## Common mistakes to avoid - Assuming there is one "EU law" of contract and leaving governing law blank. There is not, and the Rome I default may not be the law you expected.
- Charging VAT on a cross-border B2B invoice that should have been reverse-charged, or the reverse, without checking VAT numbers.
- Treating land-related or event services under the general VAT rule when they have their own place-of-supply rule.
- Ignoring the GDPR when the services touch personal data, and skipping the Article 28 processing agreement.
- Setting a governing-law clause but no jurisdiction clause, so you do not know which courts decide a dispute. ## A note on jurisdiction and current law - **Which law applies.** Rome I applies in all EU member states except Denmark. Party choice governs a B2B contract; absent a choice, a service contract defaults to the provider's country of residence or head office.
- **Which courts.** The Brussels regime, separate from Rome I, decides jurisdiction, and generally honours a jurisdiction clause in a commercial contract.
- **VAT.** The place-of-supply rules sit outside the contract's governing law. The B2B general rule is the customer's country with reverse charge, subject to the land and event exceptions. <!-- [VERIFY: current standard VAT rates vary by member state; confirm the specific member state rate before invoicing] -->
- **Consumers.** If the client is a consumer, mandatory consumer-protection rules of the consumer's home country can override your chosen law. This template is for business-to-business use. ## Where a contract workspace helps A template gets you a sound cross-border service agreement. The ongoing work is keeping governing law, VAT wording and data-protection terms consistent across deals in different member states, checking a draft for weak or missing clauses before you sign, and tracking renewal and notice dates across a portfolio. Drafting for the right member state, reviewing governing-law and data-protection terms, and keeping renewal and notice dates in view can sit in one AI workspace tuned to how your company contracts across the EU. [Adira](https://adiralaw.com) centres on one workspace for cross-border service agreements and the laws they touch. The template alone can still put a fair agreement in place; the workspace simply keeps the member-state differences in one view.