How to Invoice International Clients: Currency, Tax & Payment Tips

1. Agree on Currency Before Starting

Decide on the billing currency before the project begins. The most common choices for international freelancers are USD and EUR as they are widely accepted and stable. If the client is in a country with a volatile currency, invoice in USD or EUR to protect yourself from exchange rate risk.

2. Use a Multi-Currency Invoice Generator

Facture Generator supports over 60 currencies including USD, EUR, GBP, JPY, AUD, CAD, CHF, DKK, SEK, NOK, and more. Simply select your currency when creating the invoice.

3. VAT and Tax on International Invoices

Tax rules vary significantly by country and business type:

• EU to EU business: If your client is VAT-registered in another EU country, you typically issue a zero-rated invoice and the client applies reverse charge VAT
• EU to non-EU: Generally no VAT charged (export of services)
• US freelancers: No VAT system; you may need to collect sales tax depending on state rules

Always consult a local accountant or tax professional for your specific situation.

4. International Payment Methods

• Wise (TransferWise): Low-fee international bank transfers, real exchange rate
• PayPal: Widely accepted, but charges 3-5% in fees
• SWIFT/IBAN transfer: Standard for larger B2B payments, include your IBAN and SWIFT/BIC code on the invoice
• Stripe: Good for card payments if you have a Stripe account

5. Include Banking Details on Your Invoice

For international bank transfers, include: your full name, bank name, IBAN, SWIFT/BIC code, and bank address. You can add this in the notes section of your invoice.

6. Account for Exchange Rate Fluctuation

If you bill in a foreign currency, you may receive a different amount than expected due to exchange rate changes. Consider adding a 2-3% buffer to your rate to account for this, especially on longer payment terms.