How to Invoice in Foreign Currency: Step by Step

How to show a foreign currency amount on an invoice

If you're invoicing in a different currency, specify every amount using the three-letter currency code that's part of the agreement with your client. Place the code, like EUR, USD, or GBP, next to each amount listed and next to the total.

Use the currency code from ISO 4217. Include it near the top of your invoice, and enter that same code in your accounting system. Don't use just a symbol; for example, a dollar sign could mean several different currencies.

Which exchange rate to show and who pays the conversion

If you settled on a price in the client's currency from the beginning, you can often leave out the exchange rate. But if you're quoting in your own currency and converting, say exactly which rate you used and on what date; this lets the client verify your calculation.

Clarify who pays for converting the money. For example, if your client wires you 1,000 euros but their bank takes a fee and applies a margin, you might only receive 980 euros. State whether your amount is before or after such fees, or whether they need to pay enough to cover all costs. If you want more on this, see our guide to choosing your invoice currency, it explains how costs can shift depending on which currency you use.

Payment instructions and handling a short payment

Give precise payment instructions. List the account holder's name, the bank's name, the IBAN or local account number, the BIC (also known as SWIFT code), the right currency code, and a clear payment reference such as your invoice number. This detail reduces the chance of delays and rejected payments.

If you receive less than expected, look up which exchange rate the bank used and whether any charges were deducted. Normally, small shortfalls happen due to those reasons. Record any difference in your accounts; you'll find steps in our guide to recording foreign currency transactions.

Frequently asked questions

Should an invoice show the exchange rate?

The answer depends on how you and your client set the price. If you already agreed a sum in their currency, an exchange rate isn't necessary. If you instead converted a price from your own currency, show the rate and date so your client can confirm the calculation is correct. Always make the currency clear, and keep a record of what you used.

What happens if the client pays a different amount?

First, check if the difference comes from bank fees or the exchange rate on the transaction, these explain most minor mismatches. If it's bank charges, your terms should specify who covers those. If the client has simply underpaid, notify them briefly with the invoice number, show the missing amount, and request the outstanding balance.