Name the currency in a way that cannot be misread
Write USD 2,400.00, not $2,400.00. A dozen currencies use the dollar sign. An invoice read in the wrong one is either underpaid or disputed, and both cost more than three extra characters.
Carry the details a foreign bank actually needs
- The account holder's name exactly as the bank has it
- IBAN, or account and routing numbers, depending on the destination
- SWIFT/BIC code
- The bank's name and address, which many transfer forms ask for
- An intermediary bank, where your bank publishes one
Say what the tax treatment is
Whether you charge tax on a foreign sale depends on where you are, where the client is, and what you sold. Services and goods are often treated differently. State the treatment on the invoice. If the client needs a tax form from you, ask which one before invoicing, not after.
Agree the payment route in advance
A wire, a card payment and a platform payout arrive at different speeds and for different net amounts. If you pick one only after the invoice is out, a thirty-day term turns into a sixty-day one.
Common questions
- Which currency should I invoice in?
- The one you want to be paid in, agreed before the work starts. Invoicing in the client's currency is a courtesy, but it moves the exchange risk to you. If you offer it, build that risk into your price.
- Do I charge sales tax to a foreign client?
- It depends on your own jurisdiction's rules and on what you sold. Do not guess from the client's address alone. State the treatment on the invoice, and check it with your accountant for the countries you deal with often.
- Why did less money arrive than the invoice said?
- Almost always it is bank charges taken out along the way, or an exchange rate applied at the receiving end. Stating on the invoice who pays bank charges fixes both.