In This Guide
1. Which Currency Should You Invoice In?
This is the most common question, and the answer depends on your situation:
Invoice in USD/EUR if:
- You have multiple international clients
- You want predictable income
- Your bank offers good exchange rates
Invoice in client's currency if:
- It's a large, ongoing contract
- The client specifically requests it
- You can hedge currency risk
Pro tip
Many freelancers invoice in USD regardless of the client's location. USD is widely accepted, and you avoid the complexity of tracking multiple currencies.
2. How to Handle Exchange Rates
When invoicing in a foreign currency, you need to specify which exchange rate applies. There are three common approaches:
Spot Rate (Invoice Date)
Use the exchange rate on the day you issue the invoice. This is the most common method.
Fixed Contract Rate
Agree on a fixed rate for the duration of the project. Good for large projects.
Payment Date Rate
Use the rate on the day payment is received. Adds uncertainty but can work in your favor.
Important
Always state the exchange rate source on your invoice (e.g., "Exchange rate: XE.com, Jan 15, 2026"). This prevents disputes and is often required for tax purposes.
3. Best Payment Methods for International Clients
Not all payment methods are equal for international transfers. Here's what works best:
| Method | Fees | Speed | Best For |
|---|---|---|---|
| Wise (TransferWise) | 0.5-1% | 1-2 days | Most freelancers |
| PayPal | 2.9% + $0.30 | Instant | Small amounts |
| Bank Wire (SWIFT) | $15-40 | 3-5 days | Large invoices ($5k+) |
| Stripe | 2.9% + $0.30 | 2-7 days | Recurring clients |
4. Tax Considerations & VAT
International invoicing comes with tax complexities. Here are the key points:
- B2B services to other countries: Usually VAT-exempt (reverse charge mechanism in EU)
- Record exchange rates: You'll need these for tax reporting in your home currency
- Keep proof: Save screenshots of exchange rates used on invoice dates
5. Get a Multi-Currency Invoice Template
Stop manually looking up exchange rates. Our multi-currency invoice template automatically fetches live rates and calculates totals for you automatically.