Are you a freelancer or goods & service exporter trying to learn about invoicing and how you can create one for your international clients?
Then you’re in the right place! In this article, we’ll help you learn about invoicing, the difference between domestic and international invoices, tools to create an invoice, and payment services that you should consider to payments from all around the globe.
What is an invoice and how is it different from an international invoice?
An invoice is a formal document issued by a seller containing details of the goods or services, quantity, price, and due amount. It is primarily used to request payments and acts as a record of transactions for both the sending and the receiving party. Invoices also help freelancers and businesses maintain their cash flow and can be used during tax evaluation.
While the core purpose of the invoice remains the same, an international invoice is created to send it to a client living in another country. However, an international invoice will contain additional information such as Value Added Tax (if applicable) and currency conversion.
Let us learn about international invoices in detail.
What information should an international invoice consist of?
Every country has its regulations according to which an invoice should be created including certain details. These details are-
- Company information
An international invoice should include company information, such as the address and contact information of both the sending and the receiving parties.
- Invoice details
Every invoice should have its unique number, a description of the goods and services provided, an HSN code, and an invoice amount.
- Payment information
Along with the amount, you also need to provide a payment due date in the invoice.
- Terms of payment
Your invoice should include the method of payment as well as the currency you and your client are comfortable with.
Details to consider when invoicing international clients
While creating an international invoice, the main challenge faced by the payer and the payee is the currency and local taxes.
- Currencies
To simplify the transaction process and enhance customer experience, you should consider using local currency. This can not only help you avoid foreign exchange losses but also understand their need. The US Dollar and Euro are the most popular choices for people to initiate transactions in. However, offering a flexible payment solution can result in a seamless and hassle-free transaction.
With BRISKPE’s virtual international account, you can receive international payments in multiple currencies and convert them into INR at a favourable rate.
- International taxes
It is important to understand the tax regulations of different countries to deal with their invoices. For example, a UK-based business might need to account for Value Added Tax (VAT) when servicing overseas clients, especially in the European Union where VAT rates can exceed 20%. Therefore, you need to research the tax implications of your client’s country to ensure compliance and avoid penalties. Including all the necessary tax implications will not only streamline your payment process but will also show your transparency and professionalism.
- Payment methods
When dealing with international clients, you need to carefully choose a payment method that can help you receive your international payments fast and hassle-free. Most goods and service exporters use bank transfers, credit/debit cards, digital wallets and cheques. However, providing a payment method through which clients can pay in their currency can ease the transaction process.
BRISKPE can simplify this process by allowing you to set up a local bank account to minimize the transaction fee and facilitate faster payments. We offer multiple currencies i.e., you can receive your international payments from various countries such as the USA, Europe, UK, Canada, Australia, and Singapore.
Through the BRISKPE app, you can request payment or use our payment links option to receive money through a credit/ debit card.
Also Read: How to start transacting with BRISKPE?
Tools to create an international invoice
There are various tools available online that can help you create an international invoice. Some of them are-
Conclusion
Creating an invoice for international clients might seem complex but understanding the details of it is essential to streamline the process and maintain your cash flow.
To receive your international payment seamlessly, it is essential to have the right knowledge and resources as a goods & service exporter.
By taking the right approach, invoicing can become a hassle-free part of your business operations. And with BRISKPE by your side, you focus on what you do best- providing goods and services to your international customers.
