Guide

International Invoicing Guide for Freelancers

Published June 5, 2026 · 9 min read

Getting paid by someone in another country sounds straightforward until you actually try it. Which currency do you use? Do you charge VAT? What's the cheapest way to receive the money? Why is your bank taking a 3% cut?

This guide covers the things that trip people up when they invoice across borders for the first time — and the things that still trip up experienced freelancers.

Pick a currency

This is the first thing you need to decide, and ideally it's in your contract before the work starts.

The general rule: invoice in whatever currency you agreed on. If your contract says you'll be paid in USD, invoice in USD. If it says EUR, invoice in EUR. Don't switch currencies partway through a project.

If the currency wasn't discussed upfront, think about who bears the exchange risk:

• You invoice in your currency — you get the exact amount you asked for. The client's bank converts it and charges them a fee. Some clients don't like this.
• You invoice in the client's currency — the client pays exactly what's on the invoice. But your bank or payment service converts it, and you might get less than expected when it lands in your account.
• You invoice in a neutral currency — USD is the default for international contracts, even if neither of you is in the US. It's understood everywhere and most payment services handle it cheaply.

VAT, GST, and sales tax

This is where most people get confused. Here's the short version:

You're in the EU or UK

If you're VAT-registered and selling services to another VAT-registered business in a different EU country, you usually apply the reverse charge. That means you don't charge VAT — the client accounts for it in their own country. You write "Reverse charge applies" on the invoice and include both your VAT number and the client's.

If the client is not VAT-registered, or if they're outside the EU entirely, the rules depend on the type of service and where the client is based. Talk to an accountant if you're not sure.

You're in Australia, Canada, or another GST country

Similar principle. If you're selling to a business overseas, GST often doesn't apply. But the specifics depend on your country's rules. Check with your local tax authority.

You're in the US

The US doesn't have a national VAT or GST. You might need to charge state sales tax depending on what you're selling and where the client is. For digital services, the rules are all over the place. When in doubt, ask a tax professional.

You're not registered for VAT/GST

If your revenue is below the registration threshold in your country, you probably don't need to charge VAT at all. But check your local rules — some countries require you to register once you hit a certain amount of international sales.

Important: Tax rules change, and they vary by country. What's written here is a general overview, not advice. For your specific situation, talk to someone who does this for a living.

Payment methods that work across borders

Not all payment methods are equal when you're dealing with international clients. Here's how the common ones compare:

Wise (formerly TransferWise)

Good for: Receiving bank transfers from clients in other countries.

Wise gives you local account details in multiple currencies (USD, EUR, GBP, and more). Your client sends a regular bank transfer to a local account — no international wire fees on their end. You pay a small conversion fee when you withdraw, but it's usually cheaper than what banks charge.

Typical cost: 0.5–2% depending on the currency pair.

PayPal

Good for: Speed and convenience. Most clients already have a PayPal account.

PayPal is easy to set up and clients can pay with a credit card. But the fees add up — you pay a percentage of the transaction plus a fixed fee, plus a conversion fee if the payment is in a different currency.

Typical cost: 3–5% when you factor in the commercial rate and currency conversion.

Bank wire transfer (SWIFT)

Good for: Large payments ($5,000+) where the fixed fee is a small percentage of the total.

Wire transfers go directly from the client's bank to yours. They're reliable for large amounts, but there are usually fees on both ends, and the exchange rate your bank gives you might not be great.

Typical cost: $15–40 in fees. Exchange rate markup varies by bank.

Other options

• Payoneer — similar to Wise but more focused on marketplaces. Decent for recurring payments.
• Stripe — if you need to accept credit card payments. Requires a Stripe account. Good for one-off payments from clients who prefer card.
• Crypto — some freelancers use stablecoins (USDC, USDT) for international payments. Fast and low-fee, but not all clients are comfortable with it, and tax reporting can be complicated.

What to put on an international invoice

An international invoice needs everything a regular invoice has, plus a few extra details:

• Both addresses in full — including country. "123 Main St" isn't enough when the client is in another country.
• Currency clearly stated — write "USD" or "EUR" next to the total. Don't assume the client knows.
• Tax ID / VAT number — yours and the client's (if applicable).
• Payment instructions — spell out exactly how to pay. Include account numbers, SWIFT/BIC codes, or whatever the payment method requires.
• Any tax notes — if reverse charge applies, say so. If you're not charging VAT, note why (e.g. "VAT not applicable — service supplied outside the EU").

Common mistakes

• Not agreeing on currency upfront. This leads to awkward conversations when the invoice arrives and the client realizes they're paying in a currency they didn't expect.
• Ignoring exchange rate changes. If you quote a project in EUR and the euro drops 5% against your home currency before you get paid, that's money out of your pocket. For long projects, consider building in a small buffer or agreeing on a fixed exchange rate.
• Using expensive payment methods by default. PayPal is convenient but expensive for large payments. If the client is paying $5,000, the difference between PayPal (4% fee) and Wise (1% fee) is $150.
• Forgetting about withholding tax. Some countries require the client to withhold tax on payments to foreign contractors. If the client withholds 10%, you get less than what's on the invoice. Look into whether your country has a tax treaty that reduces or eliminates withholding.
• Missing tax details on the invoice. EU businesses need your VAT number to process the invoice. Forgetting it means delays.

Frequently asked questions

Can I invoice a foreign client in my own currency?

You can, but it's often better to invoice in the client's currency or the currency you agreed on in your contract. If you invoice in USD but your client is in Europe, they have to convert the amount — and their bank will charge a fee for that.

Do I need to charge VAT when invoicing international clients?

It depends on where you're based and where your client is. In the EU, B2B services between VAT-registered businesses in different countries often use the reverse charge mechanism — the client accounts for the VAT, not you. Check with a tax professional for your specific situation.

What is the best way to receive payment from international clients?

Wise (formerly TransferWise) and PayPal are the most common options for freelancers. Wise generally has lower fees and better exchange rates for bank transfers. PayPal is faster but more expensive. For large amounts, a direct wire transfer might be better.

Should I include my tax ID on international invoices?

Yes, if you have one. Your VAT number, GST number, or local tax ID should appear on the invoice. For EU and UK businesses, the VAT number is legally required on invoices. Even if it's not required where you are, including it looks professional and helps the client's accounting.

Create an international invoice

Ready to send that invoice? Open the generator, pick your currency, fill in the details, and download the PDF. You can also start from the international client template with sample data pre-filled.

Written by Allen Wong. If this guide helped you, consider supporting InvoiceCraft on Ko-fi. Tax information in this guide is general in nature and does not constitute tax advice.