Working with clients in other countries opens up a bigger market — and adds questions a domestic invoice never raises. Which currency? Do you charge VAT? Will the client withhold tax? Why did $4,000 arrive as $3,955? This guide brings the answers together and links to deeper guides on each topic.
International tax rules are complex and depend on where you and your client are based and what you sell. This guide is general information, not tax or legal advice.
1. Agree the basics before the first invoice
| Question | Why it matters |
|---|---|
| Which legal entity do we invoice, and at what address? | Multinationals have many entities; wrong entity = rejected invoice |
| Which currency? | Determines who carries exchange-rate risk |
| Do you need our tax ID, a W-8 form or a supplier registration? | Many companies can’t pay unregistered suppliers |
| Do you need a PO number on invoices? | Common in large organisations |
| What are your payment terms and payment runs? | International payments can add days |
| Do you require e-invoices or a supplier portal? | Some countries and companies won’t accept PDF |
2. Currency
Invoice in a currency you’ve both agreed, and show the ISO code (USD, EUR, GBP) next to amounts — “$” alone is ambiguous. Pricing in the client’s currency can win work but exposes you to exchange-rate swings; pricing in yours shifts the risk to them. If you’re VAT-registered and invoice in a foreign currency, many systems (including the EU and UK) require the VAT amount in your local currency too. Details: how to invoice in a foreign currency.
3. VAT, GST and sales tax
The key question is where the supply is taxed — the “place of supply”. Broad patterns for services (rules for goods differ):
| You are… | Client is… | Typical treatment (simplified) |
|---|---|---|
| EU, VAT-registered | Business in another EU country | No VAT charged; reverse charge — note it and show both VAT numbers |
| EU, VAT-registered | Business outside the EU | Often outside the scope of EU VAT; note the reason on the invoice |
| EU, VAT-registered | Consumer in another EU country | Your VAT up to the €10,000 EU-wide threshold for certain services/distance sales; then the customer’s country’s VAT (often via OSS) |
| UK, VAT-registered | Business outside the UK | Often outside the scope of UK VAT for B2B services under the general rule |
| Outside the EU | EU business | Usually no EU VAT on your invoice; the client self-accounts under reverse charge |
| Outside the EU | EU consumers (digital services) | You may need to register for and charge EU VAT from the first sale (non-Union OSS) |
| US business | Foreign client | No US sales tax on most services exported; foreign VAT may be the client’s responsibility |
Exceptions are numerous — services connected to land, events, transport and digital services to consumers follow special rules. See how to charge VAT on invoices and, for the US side, sales tax on invoices.
4. Withholding tax
Some countries require clients to withhold income tax from payments to foreign service providers and pay it to their tax authority — so you receive less than the invoice total. A tax treaty between the two countries may reduce or eliminate it, usually if you provide a certificate of tax residence or a specific form beforehand.
- US clients typically ask non-US contractors for a Form W-8BEN (individuals) or W-8BEN-E (entities) to document foreign status and any treaty claim.
- Countries such as India, Mexico, Brazil and the Philippines, among others, apply withholding to certain cross-border service payments.
Ask early, and decide in your contract whether your price is net or gross of withholding.
5. Getting paid across borders
- Provide complete international details: IBAN, BIC/SWIFT, bank name and address; for the US, account and ABA routing number.
- Ask the client to pay with charges code OUR if you need the full amount, or factor fees into your price.
- Consider a multi-currency account that gives you local details in the client’s currency — cheaper and faster for them to pay.
- Card or online payment links are convenient for smaller clients; check conversion and processing fees.
6. Language, dates and formats
- Language: English is widely accepted for B2B invoices, but some countries require invoices for local VAT purposes in the official language, or translations on request.
- Dates: write months in words (“3 Nov 2026”) —
03/11/2026means March to an American reader. - Numbers:
1.250,00and1,250.00mean the same thing in different countries; using the currency code avoids confusion. - Addresses: include the country and postcode in the client’s format.
7. E-invoicing and portals
A growing number of countries require structured e-invoices for domestic B2B sales (Italy, Poland, Belgium, with Germany and France phasing in), and large clients often require uploads to a supplier portal. As a foreign supplier you may be outside a domestic mandate, but your client’s systems may still require a specific format. See what is an e-invoice.
8. Selling goods abroad
Shipping physical products adds customs paperwork: a commercial invoice with HS codes, country of origin, Incoterms and weights, plus packing lists and transport documents. See commercial invoices for export and proforma invoices.
Example: freelancer in Spain invoicing a US company
| Field | Example |
|---|---|
| Client | Lumen Software Inc., 500 Market St, San Francisco, CA, USA |
| Currency | USD |
| Service | Product design services, October 2026 — 32 hours × USD 85 |
| Total | USD 2,720.00 |
| VAT | Not charged — service to a business outside the EU (note per Spanish VAT rules) |
| Payment | Via multi-currency account details in USD; charges: OUR |
| Docs | Client holds W-8BEN on file |
(Illustrative only — confirm the exact wording your local rules require.)
Checklist
- Correct legal entity, address and any tax ID of the client
- Currency agreed; ISO code shown
- VAT/GST treatment determined and noted on the invoice
- Your VAT number (and the client’s for reverse charge)
- Local-currency VAT amount if required
- Withholding tax discussed; forms (e.g. W-8BEN) provided
- International bank details and fee instruction
- Dates written unambiguously
- PO number / supplier ID / portal requirements met
Country-by-country invoice requirements are summarised in our invoice templates by country — for example Germany, the United Kingdom and the United States. When you’re ready, set the currency and tax in the invoice generator.