How to Invoice International Clients: A Freelancer's Guide

How to Invoice International Clients: A Freelancer's Guide

Getting a client in another country feels like a win - until you try to figure out how to actually get paid. What currency do you invoice in? Do you need to deal with VAT? How do you receive the money? What if the exchange rate moves against you?

International invoicing has more variables than domestic billing, but once you've done it a few times, the process becomes routine. Here's everything you need to know.

What Currency Should You Invoice In?

You have options, and the right choice depends on the client relationship and your risk tolerance.

Invoice in your home currency (USD, GBP, AUD, etc.): The safest option for you. You know exactly what you'll receive, and the client absorbs the exchange rate risk. Many international clients are happy to pay in USD especially. The downside: it adds friction for the client, who has to handle the conversion.

Invoice in the client's currency: More convenient for the client, which can strengthen the relationship. The risk: exchange rates move. If you invoice for £2,000 when that's $2,500 USD and the pound falls before you receive payment, you get less than expected.

Invoice in USD even for non-US clients: Many international clients prefer USD because it's stable and familiar as a global trade currency. This works well for clients in countries with volatile local currencies.

Practical recommendation: Invoice in your home currency if you're doing occasional international work. For ongoing relationships with clients in stable economies, invoicing in their currency can be a useful advantage in competitive markets.

International Payment Methods

Wire transfer / SWIFT: The traditional international payment method. Reliable, but slow (3-5 business days), expensive (fees on both ends, often $25-45), and requires sharing your full banking details. Works well for large invoices where the fees are a small percentage of the total.

Wise (formerly TransferWise): A favorite among freelancers. Cheap international transfers (0.5-1% vs 3-5% with banks), mid-market exchange rates, fast delivery. You can give clients a local bank account number in their currency, so they pay a domestic transfer. Highly recommended.

PayPal: Widely available, easy to set up. Downsides: fees are significant (3-5%), exchange rates are poor, funds can be held. Better for smaller amounts where simplicity matters more than cost.

Stripe: Excellent for ongoing client relationships. Clients can pay by card in their local currency, you receive payment minus processing fees. Stripe handles the currency conversion.

Payoneer: Popular in markets like Southeast Asia, Eastern Europe, and Latin America. Works well for clients who want to pay in local currency or who have limited options for international wire transfers.

Crypto: Some freelancers accept USDC or other stablecoins for international payments, avoiding the banking system entirely. Works for tech-savvy clients but is still uncommon.

VAT and Tax Considerations

If you're in the EU or UK: VAT rules for cross-border services are complex. Generally, if you're providing services to a business in another country (B2B), you don't charge VAT and the client accounts for it under the reverse charge mechanism. If you're selling to consumers (B2C) in other EU countries, you may need to register for VAT in those countries if your sales exceed certain thresholds.

Withholding tax: Some countries require clients to withhold a percentage of your invoice as tax and pay it directly to their government. This is common in countries like India (10% TDS on freelance payments), Brazil, and some Southeast Asian countries. If a client tells you they need to withhold 10% and will remit the rest, that's likely a legal requirement, not them trying to shortchange you. You can gross up your invoice to account for withholding if needed.

If you're in the US: US freelancers generally don't charge foreign clients VAT or GST. You're outside the EU and UK tax systems. However, your income is still taxable in the US regardless of where it comes from - report all international income on your US return.

What to Include on an International Invoice

Your international invoice should include everything on a domestic invoice, plus:

Currency designation: Make the currency explicit - not just "$2,000" but "USD $2,000" or "£2,000 GBP". This removes ambiguity.

Payment instructions specific to international transfer: Include your SWIFT/BIC code, IBAN (if applicable), and your bank's full name and address. For Wise, provide the local account details for the client's currency.

VAT/GST notation: If applicable to your situation, note it explicitly. "Services provided outside the EU - VAT not charged under Article 44 EU VAT Directive" (for B2B services to EU clients if you're outside the EU).

Your business address and country: More important internationally than domestically, for tax and legal purposes.

Protecting Yourself Against Currency Risk

If you're invoicing in foreign currency for a large project, consider building in a buffer - price slightly higher to account for potential exchange rate movement. Alternatively, get paid in installments so you're not waiting months while currency values shift.

For ongoing international retainers, Wise allows you to hold money in multiple currencies and convert at the rate you choose, rather than converting immediately upon receipt.

Making International Invoicing Routine

Once you've set up your preferred international payment method and have a template for your international invoices, the process becomes fast. WaffleInvoice lets you set currency on any invoice and include custom payment instructions, so your international invoice is just as easy to create as a domestic one.

Start free and invoice your first international client today.

Related reads: Payment Terms for Freelancers · How to Get Paid Faster · How to Write a Professional Invoice