Invoicing clients abroad

An invoice to a client in another country asks four questions a domestic one doesn't: which currency, whose VAT, what extra the invoice must say, and how the money crosses the border. None is hard once you know which rule applies.

By Mikhael Benjamin

Currency	Yours or the client's. Whoever's it isn't takes the exchange-rate risk.
VAT	On services to a business abroad, usually charged where the client is, not where you are.
The invoice	The client's VAT number, a "Reverse charge" note where it applies, and VAT in your own currency if you charge it.
Getting paid	IBAN and BIC for a bank transfer, and an agreement on who pays the fees.

Which currency to invoice in

Whoever's currency the invoice is not in takes the risk that the rate moves. If you invoice in yours, the client pays whatever their bank charges to convert, and you get the amount you asked for. If you invoice in theirs, paying is easier for them, but what reaches you depends on the rate on the day it arrives, less the spread your bank or payment service takes.

Neither is wrong. Clients in the euro area or the US often expect to pay in euro or dollars, and a price in their currency can be the easier sale. If you do invoice in theirs, work out the figure so the conversion doesn't leave you short: the foreign currency invoice calculator rounds it up from the amount you need. To see how far the rate could move before they pay, try the exchange rate risk calculator. Agree the currency before the work starts, and put it in the contract, so it isn't a surprise on the invoice.

VAT on services to a business abroad

For services sold to a business, the general rule is that VAT belongs to the client's country, not yours. HMRC's VAT Notice 741A (section 6.3) puts it as "the supply is made where the customer belongs", and the EU VAT Directive says the same in article 44. There are exceptions, which section 6.4 lists: services related to land, and services linked to a physical event, such as admission, training or a conference, among others. Check that yours is not one of them.

Within the EU, the client then pays the VAT themselves under the reverse charge (article 196 of the Directive). Your invoice carries no VAT, but it has to show the client's VAT number and the words "Reverse charge" (article 226). From the UK, HMRC asks you to keep evidence that the client is in business abroad, and says that for EU clients "their VAT registration numbers is the best evidence". The VAT number checker checks the number's format and links to the official register.

Selling to private individuals abroad follows different rules, and some digital services have rules of their own. If your clients are consumers, check with your tax authority before you invoice.

VAT in a foreign currency

If you do charge VAT on an invoice in another currency, the VAT itself has to be shown in your own currency. In the UK, VAT Notice 700 allows the other amounts "in any currency", but says the total VAT "must be expressed in sterling" (section 16.3.1). To convert, you use the UK market selling rate at the time of supply, or HMRC's published period rate (section 7.6). The EU rule in article 230 of the Directive is the same: amounts "may be expressed in any currency, provided that the amount of VAT payable" is in the national currency.

In practice, that means one extra line on the invoice, such as "VAT £172.40 at the HMRC period rate", under the total in the client's currency.

Getting the money to you

Give your IBAN and BIC. Most of Europe and many other countries pay by IBAN. Inside the euro payments area the IBAN alone is usually enough, but a bank further away will ask for the BIC (the bank's SWIFT code) too. The IBAN checker catches a mistyped digit before the client does.
In euro, a SEPA transfer is the usual route. The SEPA QR code generator makes a code the client's banking app can scan to fill in your details, so nothing is mistyped.
Agree who pays the fees. Within the EU, each side pays its own bank: PSD2 (article 62(2)) requires that "the payee pays the charges levied by his payment service provider, and the payer pays the charges levied by his payment service provider". Outside it, fees can come off what arrives, so put who pays them in your terms.

A payment service that converts the money for you also takes a spread on the rate, which it rarely shows as a fee. Payment processing fees covers how to see it, and the invoice take-home calculator follows one invoice down to what you keep.

Language and dates

An invoice in English is understood by most accounts teams, but some clients prefer their own language, and some countries expect it for tax records. Invoice terms in other languages lists the headings in fifteen of them. Write dates with the month in words, because 05/10/2026 is 5 October in the UK and 10 May in the US.

Making one in the invoice generator

The invoice generator here covers each part:

Choose the Currency and, if you like, the Language in the side panel. The language switches every heading on the invoice.
Press + Add tax number for your own VAT number, and put the client's VAT number on a line of their address.
For a reverse-charge invoice, add no tax rate, and write "Reverse charge" in Notes.
If you charge VAT in another currency, add the VAT in your own currency as a line in Notes, since the totals print in one currency.
Put your IBAN and BIC in Payment details.

Short version: agree the currency first, since whoever's it isn't takes the exchange risk. For services to a business abroad, VAT usually belongs to the client's country; within the EU the invoice shows their VAT number and "Reverse charge". If you charge VAT in another currency, show the VAT in your own. And give your IBAN and BIC, with who pays the fees.