How to invoice a customer abroad?

Did you know that China and the United States are France's main importers? If you want to work with customers abroad , whether they are European, Asian or American, you need to know the invoicing rules that apply.

To simplify the management of your invoicing, use powerful and free software such as our Facture.net tool , available online.

These rules are also different for trade with the European Union and outside the EU . So what should you do if you need to create an invoice in a currency other than the euro? What VAT applies to international trade ?

Foreign invoicing rules

Issue an invoice abroad

You can totally invoice a foreign customer. Your invoices must be written with the usual information. Indeed, these do not differ according to the geographical area:

• Identity of the customer and the service provider;
• Invoice issue date and number ;
• Legal form of the company;
• Siren number ;
• VAT number ;
• Total amount to be invoiced.

We remind you that each invoice must be published in duplicate and carefully kept by the buyer and the seller.

If you issue your invoices in a currency other than the euro and take VAT into account, other rules must be taken into account.

The intra-community VAT number in foreign invoicing

You must have an intra-community VAT number to invoice your European customers even if you are not subject to VAT.

The intra-community VAT number consists of the country code, a 2-digit computer key and your SIREN number .

This rule essentially concerns exchanges between countries of the European Union.

• If you practice a purchase-sale activity, you must indicate an intra-community VAT number in the event that you buy or sell goods for more than €10,000 to a European customer during the previous year and the current one.
• If you provide services , you must provide your intra-community VAT number, regardless of the amount paid during the year.

You must apply to the tax services of your place of residence to obtain an intra-community VAT number.

This request can be made by email, by post or directly on the government's tax website.

If your customer does not have a VAT number, then you simply need to apply the one for his country.

The declaration of exchange of services or DES

Whether you are a freelancer or not, you must make a declaration of exchange of services if you provide services for a company based in a country of the European Union.

This declaration is made on the customs site before the 10th working day of the month following the reference month.

Customs can thus control the taxation of VAT and check the exchanges carried out between countries of the European Union.

The declaration of exchange of goods or DEB

This monthly declaration concerns activities that export to European Union countries.

The DEB must also be declared before the 10th of each month. The declaration of exchange of goods is also made on the customs site.

For imports with other countries in the European zone, you must also make a DEB if the amount of €460,000 is exceeded in the year.

VAT rules applicable to invoicing outside the European Union

VAT does not apply when you sell or buy from customers located in countries outside the European Union.

However, you must indicate the following statement on your invoices “ Exemption from VAT – Article 262 1° of the CGI”.

If you wish to translate the invoice into the customer's language, the special mentions must also be translated.

Sound easy to you? Not that much, since you don't recover the VAT from the customer. You must then declare the VAT on the raw materials and all possible expenses.

As an exporter, you can claim a VAT refund monthly instead of quarterly.

In addition, if your activity allows you to export very regularly outside the European Union, you can avoid the systematic payment of VAT and request a monthly refund.

To benefit from this advantage, make a certificate to the supplier by certifying that the products are intended to be exported abroad.

If your foreign customer picks up his products directly from your company and manages the shipment to his country, you just have to write a classic invoice with the application of French VAT.

Create an invoice in another currency

If you work with clients based in countries outside the European Union, they may use the US dollar or the Chinese renminbi for example.

You can absolutely write your invoices in another language and with a foreign currency . It is necessary to ensure that the currency is well recognized and conforms to the ISO 4217 standard.

You must also be able to convert this currency into euros.

You must establish your invoices according to an exchange rate verifiable with the European Central Bank.

You must specify the applicable euro exchange rate when you write your invoice and clearly mention the currency concerned.

Do you have to translate an invoice for a customer abroad?

Translating an invoice into your customer's language can help you stand out from the competition. But if translating an invoice into Chinese turns out to be too complicated, you can always opt for English, which is recognized as an international language.

Translating an invoice for a foreign customer is not compulsory. In case of control, it is even possible that you will be asked for the French version of the invoice. It is therefore advisable to write it in both languages.

Billing fees for a customer abroad

Fees may apply in the event of invoicing and payment by a non-SEPA customer. Here are the possible costs:

• The increase in the exchange rate ;
• Transfer fees taking into account the cost of sending;
• Bank charges in the event of a transfer via a financial institution.

Indeed, French banks are often ill-suited to managing bank transfers outside the European Union and do not hesitate to overcharge this type of operation.

You can turn to online payment platforms that offer services adapted to these transactions with foreign countries.

Our tip for invoicing a customer abroad

You now know how to invoice a customer abroad. Always take your time to avoid careless errors when making your invoices, especially for your customers based abroad.

To facilitate your accounting, you can use invoicing software such as Facture.net to establish your invoices. It is a free tool, practical and accessible even on the go since you can easily access it online.