How to Invoice International Clients: Currency, VAT and Getting Paid

Working with clients abroad is normal now for freelancers and small businesses. The invoice itself is familiar, but a few decisions need making up front. Here's a practical run-through. Tax rules depend on where you and your client are, so treat this as a map, and check specifics with an accountant.

1. Choose the currency

Your currency: you know exactly what you'll receive; the client carries exchange risk. Their currency: easier for the client to approve and pay; you carry exchange risk. A major third currency (USD or EUR): common when neither side's currency is widely traded.

Whatever you choose, agree it before the work and put it in your quote. On the invoice, state the currency clearly. The generator formats amounts correctly for 30 currencies.

If you invoice in a foreign currency but are VAT-registered in the UK, the VAT total must also be shown in sterling. Many other VAT countries have similar local-currency rules.

2. Work out the tax treatment

This is where it gets specific.

Selling services from the UK

Services supplied to a business customer outside the UK are generally treated as supplied where the customer belongs, which usually means no UK VAT is charged. The invoice should note that the supply is outside the scope of UK VAT. Some services have special rules (land, events, some digital services to consumers), so check if yours is one of them.

Selling services between EU countries (B2B)

Most B2B services supplied across EU borders fall under the reverse charge: you don't charge VAT, and the customer accounts for it in their own country. The invoice must show:

• Your VAT number and the customer's VAT number (check it with the EU's VIES service)
• The words "Reverse charge" (member states may require specific wording)
• No VAT amount

You'll usually also report these sales on an EC Sales List (recapitulative statement).

Selling to consumers abroad

Different rules. For example, EU VAT on digital services sold to consumers is due in the customer's country, often handled through the One Stop Shop (OSS) scheme. If you sell digital products or services to individuals internationally, look into this specifically.

US businesses selling abroad

The US has no VAT, so you don't charge VAT, but your client may need to self-account for VAT in their country under the reverse charge. They may ask for their VAT number to be shown on your invoice. Some countries also apply withholding tax on certain cross-border payments for services; your client will tell you if they're required to withhold.

3. Get the payment details right

International bank transfers need more detail:

• Account holder name exactly as the bank has it
• IBAN (for Europe, the Middle East and many other countries) or account number
• SWIFT/BIC code
• Bank name and address
• For US accounts receiving international wires: account number, the bank's SWIFT code, and sometimes an intermediary bank

Or use a multi-currency account or payment service that gives you local account details in several currencies. That often makes paying you much cheaper for the client.

4. Decide who pays fees

International transfers can lose money to sending fees, receiving fees, intermediary bank fees and exchange rate margins. Agree in advance, and put it on the invoice:

Please pay the full invoice amount in EUR. All bank charges are payable by the sender (SWIFT charge option "OUR").

If you don't specify, you may receive less than you invoiced.

5. Mind the details that differ

• Date formats: 04/09/2026 is 4 September in the UK and 9 April in the US. Write dates out ("4 September 2026"); the generator does this automatically.
• Company names: use the client's full legal entity name and address, including country.
• Tax IDs: include the client's VAT or tax number when you're invoicing under the reverse charge.
• E-invoicing: some countries now require structured e-invoices for B2B sales; see e-invoicing.

Example: UK consultant billing a German company

Invoice INV-0212, 20 September 2026 From: Harper Analytics Ltd, London. VAT GB 000 0000 00 To: Nordwerk GmbH, Munich, Germany. VAT DE 000000000 Data analysis consulting, August 2026: €6,400.00 VAT: 0% (services supplied to a business outside the UK, outside the scope of UK VAT; customer to account for any VAT due under the reverse charge in Germany) Payment: IBAN GB00 XXXX 0000 0000 0000 00, BIC XXXXGB2L. Bank charges to be paid by sender.

(Placeholder numbers shown.) Your accountant can confirm the exact wording they prefer.

Getting paid on time

Payment cultures differ. Some countries' businesses routinely pay on 60-day terms; others pay within days. Ask how the client's AP process works, confirm who approves invoices, and consider a deposit for new overseas clients, since chasing across borders is harder. For goods rather than services, see the commercial invoice guide.