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Invoicing in a Foreign Currency

  • 07-08-2019 8:27pm
    #1
    rymass
    Registered Users, Registered Users 2 Posts: 34 ✭


    Hello All,

    I am a bit stumped at the moment... If I invoice an international customer, can I invoice them in their local currency or does it have to be the currency of the country where the business is located?

    A few international companies have invoiced me in Euros, even though they are outside of the EU. However, a friend is adamant that it is wrong and the company should have invoiced me in their local currency.

    In my mind, you can invoice in whichever currency you wish to use. But I'd like to double-check if I am wrong or not.

    Thanks, Ryan


Comments

  • #2
    onlinepal100
    Registered Users, Registered Users 2 Posts: 36 ✭onlinepal100


    You can invoice in any currency you wish.

    The 2 norms are the currency of the customer or the seller.

    If you in voice in a currency which is not your operating currency (which is for this example EURO) then you bear the risk of any change in exchange rates.

    If you invoice in the customer's currency the income will need to be exchanged for EURO on receipt, unless you maintain a currency account. You would only do this if you will have regular income and expenses in that currency.


  • #3
    frankythefish
    Closed Accounts Posts: 339 ✭✭frankythefish


    Can always raise the invoice in euros and other currency with fx rate stated on invoice. Client can pay in either currency then


  • #4
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,628 ✭✭✭✭Marcusm


    frankythefish wrote: »
    Can always raise the invoice in euros and other currency with fx rate stated on invoice. Client can pay in either currency then

    That makes it impossible for OP to manage FX risk. Client gets a free option to choose the more favourable outcome and OP receives nothing for granting the option.


  • #5
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Perhaps But then again, loose a bit on FX but then get paid without having to chase because the client wants to take advantage of a favourable exchange rate.

    Rule of thumb is always make it super easy to get paid so you dont have to chase

    Best Regards


    dbran


  • #6
    rymass
    Registered Users, Registered Users 2 Posts: 34 ✭rymass


    Many thanks everyone. Just as I thought and it's great to get a second opinion.


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  • #7
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,628 ✭✭✭✭Marcusm


    dbran wrote: »
    Perhaps But then again, loose a bit on FX but then get paid without having to chase because the client wants to take advantage of a favourable exchange rate.

    Rule of thumb is always make it super easy to get paid so you dont have to chase

    Best Regards


    dbran

    In that case, invoice in the local currency of the customer. Provided embedded optionality does not make it simpler for the customer. Having a recognisable acceptable price does.


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