What is Cross-border invoicing?

Cross-border invoicing

Cross-border invoicing is issuing invoices to clients located in another country, applying whichever indirect tax rules fit depending on where the client sits and whether they are a business or a consumer. It determines whether you charge tax, whether the reverse charge applies, or whether the transaction is out of scope.

The most common failure is assuming that invoicing abroad means invoicing without tax. It depends on the type of client and the place of supply: between businesses in different countries the reverse charge usually applies, whereas selling to final consumers can require specific registrations. Getting the invoice wrong complicates deducting expenses later.

Also called: international invoicing, foreign invoicing

Related terms

International contractorAn international contractor is a self-employed professional who provides services to a company in another country and invoices for them, with no employment relationship. They handle their own taxes, contributions and time off, and in exchange usually command higher rates and more flexibility than an equivalent employee.
Multi-currency accountA multi-currency account lets you receive, hold and convert money in several currencies within the same account, with local banking details in different countries. It avoids every international payment going through a conversion with a hidden margin, which is where much of the income is lost when invoicing abroad.