How to Invoice International Clients (Currency, Tax, and Banking)

To invoice an international client, agree on four things before the first invoice: the currency, who pays transfer and conversion fees, how tax is treated, and how the client will pay. Then put them on the invoice along with both parties' legal names, addresses and any tax IDs, a clear description of the services, and complete payment instructions. Tax rules depend on the countries involved and on whether your client is a business, so check them with your accountant before you bill.

Billed publishes this page. The tax rules below are quoted from EU law on EUR-Lex, HM Revenue & Customs (HMRC) for the UK, and the IRS for the US, each labeled with its jurisdiction and opened on October 29, 2026. This is general information, not tax advice; ask your accountant how the rules apply to you.

Agree on the terms first

Put these in your agreement or estimate:

• Currency: which currency the invoice is in.
• Fees: who pays bank transfer and conversion fees.
• Tax: how VAT, GST or sales tax is handled, as confirmed with your accountant.
• Payment method: bank transfer, card or another method, and the details the client needs.
• Due date: a calendar date, so time zones don't cause confusion.

Choose the invoice currency

• Your own currency: your records stay simple, and the client handles conversion.
• The client's currency: paying is simpler for the client, and you take on the exchange rate risk between the invoice date and payment.

Whichever you choose, show the currency code (such as USD, EUR or GBP) next to every amount. Billed's invoice software page says you can "Invoice customers in multiple currencies, choosing a different currency for each invoice or customer." Its estimating software page says you can "create estimates in different currencies for each customer."

Show legal names, addresses and tax IDs

Use the legal business names and full addresses that match your agreement. If the client gives you a VAT or other tax number, include it, along with yours if you have one. HMRC's guidance on services (UK) also says "The invoices should avoid general or generic descriptions and make clear the nature of the services involved." For more, see invoice compliance requirements and what is a VAT invoice.

VAT and reverse charge

EU

Council Directive 2006/112/EC, the EU VAT Directive (EUR-Lex consolidated text, version of January 1, 2025), sets the general rule for services sold to businesses:

• Place of supply (Article 44): "The place of supply of services to a taxable person acting as such shall be the place where that person has established his business."
• Who pays the VAT (Article 196): "VAT shall be payable by any taxable person, or non-taxable legal person identified for VAT purposes, to whom the services referred to in Article 44 are supplied, if the services are supplied by a taxable person not established within the territory of the Member State."
• Invoice wording (Article 226, point 11a): among the details an invoice must show, the directive lists "where the customer is liable for the payment of the VAT, the mention ‘Reverse charge’".

There are exceptions to the general rule, and each EU country applies the directive through its own law. Ask your accountant whether the reverse charge applies to your services and what your invoice should say.

UK

HMRC's Place of supply of services (VAT Notice 741A) (last updated September 29, 2022) says "B2B general rule services: supplied where the customer belongs". For a UK business buying services from a supplier outside the UK, it says "The reverse charge applies to almost all B2B supplies of services except exempt supplies," and "Where it applies to services which you receive, you, the customer, must act as if you are both the supplier and the recipient of the services." Ask your accountant how this applies to your services.

US

• Worldwide income: the IRS page U.S. citizens and resident aliens abroad (last reviewed or updated October 20, 2026) says "You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code."
• Foreign currency: the IRS page Foreign currency and currency exchange rates (last reviewed or updated May 22, 2026) says "You must express the amounts you report on your U.S. tax return in U.S. dollars." For taxpayers whose functional currency is the US dollar, it says "Use the exchange rate prevailing when you receive, pay, or accrue the item."

Ask your accountant which exchange rate and date to use for your records.

E-invoicing

Certain countries require invoices in a structured electronic format for certain transactions. Rather than repeat those rules here, see e-invoicing mandates, how to prepare for e-invoicing and e-invoicing statistics.

Payment instructions

List everything the client's bank needs:

• Account holder name, exactly as your bank has it.
• Bank name and address.
• Account number or IBAN, and the SWIFT/BIC code.
• Any intermediary bank your bank requires.
• The reference to use, such as the invoice number.

If you change bank details, tell the client before the next invoice and suggest they confirm the change with you by phone. For card or PayPal payments, Billed's accept payments page says "Billed integrates with Stripe to enable online payments on invoices," and "Add your Paypal account to Billed to start accepting payments via Paypal on your invoices."

Worked example: a US freelancer invoicing an EU business

The freelancer, client, exchange rate and figures here are a sample, invented for this example. They aren't tax advice.

A US designer invoices a business in Germany in euros, as agreed in the contract. The client's accountant has confirmed the VAT treatment and asked for the client's VAT number and the note "Reverse charge" on the invoice.

• Brand strategy workshop: €1,200.
• Website design: €1,800.
• Subtotal: €1,200 + €1,800 = €3,000.
• VAT: €0, with the note "Reverse charge" and the client's VAT number.
• Amount due: €3,000, by bank transfer, with fees for the sender as agreed.

The client pays the full €3,000. For US tax, the designer records the income in US dollars. At a sample rate of 1 EUR = 1.15 USD on the day the payment is received, that's €3,000 × 1.15 = $3,450.00. A different rate on a different day would give a different dollar amount, which is why the designer asks their accountant which rate and date to use.

When this guide isn't for you

This guide is for freelancers and small businesses selling services across borders. If you sell physical goods, customs documents also apply; see what is a commercial invoice. If you sell to consumers rather than businesses, or you're registered for VAT in another country, different rules can apply. For recurring work with an overseas client, see recurring invoices, and for templates, see invoice templates and the invoice generator.

Related Articles

• Invoice Compliance Requirements
• What Is a VAT Invoice?
• What Is a Commercial Invoice?
• How to Invoice for Freelance Work

Frequently Asked Questions

What currency should I invoice international clients in?

Use the currency in your agreement. Invoicing in your own currency keeps your records simple, and invoicing in the client's currency makes paying simpler for them but leaves you with the exchange rate risk. Show the currency code next to every amount.

Do I charge VAT to a business client in the EU?

Under the EU VAT Directive's general rule, services to a business are supplied where the customer is established, and the customer pays the VAT when the supplier isn't established in that country. There are exceptions, and each country has its own law, so ask your accountant what applies to your services.

What does "Reverse charge" mean on an invoice?

It tells the reader that the customer, not the supplier, accounts for the VAT. The EU VAT Directive lists the mention "Reverse charge" among the invoice details required when the customer is the one liable for the VAT.

How do US freelancers record income paid in foreign currency?

The IRS says amounts on a US tax return must be in US dollars. For taxpayers whose functional currency is the dollar, it says: "Use the exchange rate prevailing when you receive, pay, or accrue the item." Ask your accountant which rate to use.

What bank details should an international invoice include?

The account holder name, bank name and address, account number or IBAN, SWIFT/BIC code, any intermediary bank, and the payment reference to use.