luckpandaAn invoice to a client in another country has the same basic parts as any other invoice. What changes is the currency, the tax treatment, the bank details and a few extra lines that tell the client, their bank and the tax authorities on both sides what kind of sale this is.
Get those right and international clients pay as reliably as local ones. Get them wrong and you can lose money to exchange rates and bank fees, or charge tax you did not need to.
1. Agree the currency before you start
You can invoice in your own currency or in your client's. Each has trade-offs:
- Your currency. You know exactly what you will receive, but your client carries the exchange rate risk, which can make you less attractive than a local supplier.
- Your client's currency. Easier for the client to approve and pay, but the amount you receive in your own currency depends on the rate on the day the money converts.
- A major third currency, usually US dollars or euros, is common when neither side's currency is widely traded.
Whatever you choose, state the currency on the invoice using its code (USD, EUR, GBP, INR) as well as the symbol, because several countries use the dollar sign. Write amounts the way the invoice's country writes them: $12,400.00 for a US client, 12.400,00 € for a German one, ₹1,24,500.00 for an Indian one.
2. Work out the tax treatment
Most countries do not charge their own VAT or GST on services exported to business customers abroad. How that is described, and what you must do to qualify, depends on where you are.
| Where you are | Selling services to a business abroad | What the invoice usually shows |
|---|---|---|
| India | Export of services, zero-rated under the IGST Act if the conditions are met | 0% IGST under LUT, with the export endorsement |
| United Kingdom | Generally outside the scope of UK VAT under the general place of supply rule | No UK VAT; for EU customers, a note that the customer accounts for VAT under reverse charge |
| EU member state | To a business in another EU country: reverse charge. Outside the EU: generally outside the scope | Both VAT numbers and the words "Reverse charge" |
| United States | No federal VAT; state sales tax does not normally apply to exported services | No sales tax |
Two important exceptions. Selling goods across borders brings in customs, export documents and different VAT rules. And selling digital services to consumers abroad, such as apps, downloads or online courses, can make you liable for VAT in the customer's country, for example through the EU's One Stop Shop or UK VAT registration.
This is a summary, not tax advice. Rules depend on what you sell, who you sell to and where both of you are. Confirm your position with an accountant before relying on a zero rate or reverse charge.
3. For Indian exporters: zero-rating and the LUT
Services are treated as exported from India when, under the IGST Act, all of these are true: you are in India, your client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange (or in rupees where the RBI allows it), and you and your client are not merely establishments of the same person.
Exports are zero-rated. You have two ways to handle the tax:
- Export under a Letter of Undertaking (LUT) without paying IGST, and claim a refund of the input tax credit you have built up. This is what most service exporters do.
- Pay IGST on the export and claim a refund of that IGST later.
The LUT is filed online on the GST portal in Form GST RFD-11, and is valid for one financial year, so file it again before each April. An export invoice under LUT should carry the endorsement "SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX", along with your client's name, address and country.
Keep the bank's proof of each inward remittance, such as a Foreign Inward Remittance Certificate or advice. You will need it to show you were paid in foreign exchange and to support refund claims. Record the rupee value of each invoice at the exchange rate your accountant uses for GST returns.
Free toolInvoice generatorBill a client in any currency, with tax worked out as you type.Open the invoice generator4. Give bank details that work internationally
Domestic bank details are often not enough for a payment from abroad. Each banking system identifies accounts differently:
| Country | Domestic details | For international payments |
|---|---|---|
| India | Account number and IFSC (11 characters) | SWIFT/BIC of your bank, plus account number |
| United States | Account number and ABA routing number (9 digits) | SWIFT/BIC for incoming wires; US banks do not use IBAN |
| United Kingdom | Sort code (6 digits) and account number (8 digits) | IBAN and SWIFT/BIC |
| Eurozone | IBAN | IBAN and SWIFT/BIC |
A SWIFT or BIC code is 8 or 11 characters and identifies the bank. An IBAN identifies the account and can be up to 34 characters, starting with a two-letter country code. Check every IBAN you put on an invoice: one wrong character means a rejected or delayed payment.
Also tell your client who pays the bank charges. International transfers can pass through intermediary banks that each take a fee. "OUR" means the sender pays all charges, "SHA" means each side pays its own bank, and "BEN" means you pay all charges out of the amount received. If you need the full amount, ask for OUR and say so on the invoice.
Many small businesses also accept payment through international payment platforms or card payment links, which can be cheaper and faster than a bank wire for small amounts. Compare the exchange rate margin as well as the fee.
5. Add what an international client needs to see
- Your client's full legal name and address, including the country.
- Their tax or VAT number, where reverse charge applies.
- The currency code next to every total.
- The tax treatment in words, such as "Export of services under LUT, IGST not charged" or "Reverse charge".
- Dates written unambiguously, such as 12 Oct 2026, never 10/12/2026.
- A purchase order number if your client uses them.
- Payment terms and who pays bank charges.
A worked example
A software developer in Bengaluru invoices a client in Austin, Texas for a month's work.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Backend development (days) | 18 | $600.00 | $10,800.00 |
| Code review and deployment (days) | 2 | $600.00 | $1,200.00 |
| Cloud hosting, passed through at cost | 1 | $400.00 | $400.00 |
| IGST at 0% (export under LUT) | $0.00 | ||
| Total due (USD) | $12,400.00 |
The invoice carries the LUT endorsement, the client's US address, the bank's SWIFT code and account number, "Charges: OUR", and "Net 30, due 11 Nov 2026" for an invoice dated 12 Oct 2026. If the client wants to pay an advance first, send a proforma invoice for the deposit.
6. Follow up across time zones
Send the invoice during your client's working hours, to the person who approves payments. Agree the payment terms in writing first; our guide to Net 30 payment terms explains common options and late payment rules in the UK, EU, India and US. When the money arrives, check the amount received against the invoice, record any bank charges as an expense, and issue a receipt if the client asks for one.