A practical guide for freelancers billing clients abroad: which currency to use, when to charge VAT or reverse-charge it, what to put on the invoice, which language to write it in, and how to get paid.
Freelancers and small businesses, especially in the Netherlands and the rest of the EU, who work for clients in other countries: a design agency in Germany, a start-up in the US, a shop in Dubai. The basics of a good invoice stay the same everywhere. What changes is the currency, the VAT treatment, the language and the way you get paid. The VAT rules below are general rules for business-to-business services from the Netherlands; goods, digital services to consumers and special sectors have their own rules, so check your situation with the Belastingdienst or an accountant.
Decide with your client before the work starts which currency you will invoice in, and put it in your quote or contract. Invoicing in your client's currency (for example USD for a US client) is often easier for them to approve and pay, but you carry the exchange-rate risk: the amount that lands in your bank in euros can be lower than expected. Invoicing in euros moves that risk to your client. Whatever you choose, show the currency clearly on every amount, not just on the total, and keep it the same on reminders and credit notes. In FaturaPro you choose the currency per invoice from 18 currencies, and the dashboard shows your totals per currency side by side, without converting them.
For a business client in another EU country, services are usually taxed in the client's country through the reverse-charge mechanism. You charge 0% VAT, write 'VAT reverse-charged' (in Dutch: 'btw verlegd') on the invoice and add both your VAT ID and your client's VAT ID. First check the client's VAT ID in the EU's VIES database. In the Netherlands you also report these sales in your VAT return and in the ICP declaration (opgaaf intracommunautaire prestaties). For a business client outside the EU, services are usually not subject to Dutch VAT, so you charge no VAT and note that on the invoice. For private individuals the rules differ, and Dutch VAT often still applies. In FaturaPro you set the VAT percentage per invoice, so you can set it to 0% and put the reverse-charge text in the invoice notes.
An international invoice needs everything a local invoice needs: a unique invoice number, the invoice date, your name, address and VAT ID, your client's name and address, a clear description of the work with the date or period, the amounts, the VAT rate and amount, and the total. For EU reverse charge, add your client's VAT ID and the reverse-charge note. If you invoice in a foreign currency and do charge Dutch VAT, also state the VAT amount in euros. Missing details are one of the most common reasons an international invoice gets stuck in a client's approval process.
There is no rule that an invoice from the Netherlands must be in Dutch. Use a language your client reads, so their finance team can approve it without questions; English works for most international clients. Some clients, especially public bodies and large companies, have their own requirements, so ask. FaturaPro lets you send each invoice in English, Dutch, French, Spanish or Arabic, while you keep working in your own language. Some clients also ask for an electronic invoice; FaturaPro can export a UBL/XML file in the EN 16931 format on paid plans, but it does not deliver invoices over the Peppol network itself.
Add your IBAN and BIC (SWIFT) and the name on your account. Within the euro area a SEPA transfer is usually cheap and fast; payments from outside often go through intermediary banks that take a fee, so agree who pays those costs and consider a payment service that handles foreign currencies well. Set a clear due date, such as 14 or 30 days, and follow up as soon as an invoice is overdue. On the Advanced plan, clients can also pay FaturaPro invoices online by card through your own Stripe account.
If you are based in the Netherlands, your bookkeeping and VAT return are in euros. Record each foreign-currency invoice in euros using a consistent exchange rate, for example the rate on the invoice date, and note the actual amount you received. The difference is an exchange-rate gain or loss. Your accountant can tell you which method to use. FaturaPro does not convert currencies, so you always see the amount you actually invoiced.
Yes. You may invoice in any currency you agree with your client. If you charge Dutch VAT on that invoice, also state the VAT amount in euros, and record the income in euros in your bookkeeping.
For business clients with a valid VAT ID, services are usually reverse-charged: 0% VAT, the note 'VAT reverse-charged' and both VAT IDs on the invoice. For private individuals, Dutch VAT often still applies.
For business clients outside the EU, services are usually not subject to Dutch VAT. Check your specific service with the Belastingdienst or an accountant, as there are exceptions.
No. Use a language your client understands. English is common for international clients.
No. FaturaPro can export a UBL/XML file in the EN 16931 format on paid plans, which your client or an access point can process, but FaturaPro is not a Peppol access point.
Use the official guidance for the rules or technical profile that applies to your transaction.