Working with clients in other countries opens up your market significantly. It also introduces questions most freelancers aren't prepared for: which currency do you invoice in, how do you handle VAT across borders, and how do you actually receive the money without losing a chunk to fees?
Here's how to navigate it.
Currency: Yours, Theirs, or Neutral?
First decision: what currency goes on the invoice?
Invoice in your client's currency if they're a large company with a procurement process — US companies in particular often have internal systems that default to USD and will push back on anything else. This is smoother for them, but it means you carry the currency risk.
Invoice in your own currency if you want certainty about what you'll receive. The client handles the conversion. Some clients prefer this because it simplifies things on their end.
Invoice in a neutral currency (typically USD or EUR) when neither party's local currency is convenient or stable. Common for freelancers operating from markets with volatile local currencies.
Whatever you choose, specify the currency clearly on the invoice — don't leave it ambiguous. And if there's any risk of exchange rate movement between invoice and payment, agree on a rate or use the invoice date rate as reference.
VAT and Tax Across Borders
This is where it gets nuanced, and where you should be careful.
Freelancer in the EU, client in the EU (different country): For B2B services, you generally issue a zero-VAT invoice with a reverse charge note. The client accounts for VAT in their country. Your invoice should include both your VAT number and the client's VAT number, plus the note "VAT reverse charged."
Freelancer in the EU, client outside the EU (US, UK, etc.): Services exported outside the EU are generally zero-rated for VAT. No VAT charged, no reverse charge needed.
Freelancer outside the EU, client in the EU: VAT rules in the EU may still apply depending on the type of service, your registration status, and the client's type (business vs. consumer). B2B is generally simpler — the EU business client handles VAT themselves.
US clients: The US doesn't have a federal VAT system. State sales tax generally doesn't apply to freelance services, though this varies by state and service type.
The honest answer: international tax is complex and jurisdiction-specific. For ongoing international work, getting advice from an accountant familiar with your situation is worth the cost. The above is orientation, not advice.
How to Actually Receive the Money
Receiving international payments is where most freelancers lose money without realizing it. Traditional bank wires for international transfers often involve fees on both ends and unfavorable exchange rates.
Options worth knowing:
Wise (formerly TransferWise): Widely used by freelancers for international payments. Near-mid-market exchange rate, transparent fees. Clients can pay in their local currency and you receive in yours, with the conversion happening in between.
Stripe: If you're using an invoicing platform that supports Stripe, many clients prefer paying by card. Stripe handles the currency conversion and deposits in your local currency.
PayPal: Ubiquitous but expensive for international transfers once conversion fees are included. Convenient for small amounts, less so for large ones.
Direct bank transfer (SWIFT): Reliable for large amounts. Fees are higher — expect $15–30 per transfer on the receiving end plus the sender's fees — but for a $5,000+ invoice it may be the most straightforward.
Local banking workarounds: If you work regularly with US clients, a US bank account (or a service like Mercury) lets clients pay via ACH as if you were local. For EU clients, an IBAN-based account is standard.
What to Put on the Invoice
An international invoice typically needs:
- Your full name/business name and address
- Client's full name/business name and address
- Your tax registration number (VAT number if EU-registered, EIN or equivalent if US-based)
- Client's tax number if applicable (for EU reverse charge)
- Currency clearly specified
- Payment method and account details (IBAN + BIC for EU bank transfers, account + routing for USD)
- Any applicable tax notes ("VAT reverse charged — Article 44 EU VAT Directive" for EU B2B)
- Invoice date and due date
Practical Tips From Experience
Keep a separate record of what you invoiced in foreign currency and what you actually received in your account. The difference is your FX cost — useful to track over time and factor into pricing.
If you work regularly with clients in one market, consider holding an account denominated in that currency so you're not forced to convert at unfavorable times.
And if a client asks to pay in a different currency than what's on the invoice, get the adjusted amount agreed in writing before you accept the payment — don't let the conversion be their decision.
TAV handles multi-currency invoicing and generates invoices compliant with EU reverse charge requirements, so the paperwork side stays clean regardless of where your clients are based.