Billing Clients Outside the US: Currency, Card Fees and VAT Basics for Agencies

White-label work travels well. A coach in London or a consultancy in Dublin can hire a US agency to rebrand a course or build a done-for-you funnel as easily as a client down the street. Billing them, though, raises questions that domestic invoices never do: which currency to quote, who pays conversion costs and whether VAT applies. This article gives general information as of October 2026. Tax rules have many exceptions, so confirm your own situation with a qualified tax professional in the relevant country.

Choosing the Invoice Currency

Stripe’s documentation separates three currencies in every payment: the currency of the customer’s card or bank account, the currency you charge in (the presentment currency) and the currency your bank account receives (the settlement currency). When they differ, two kinds of cost can appear:

If you charge in a currency your bank does not hold, Stripe converts the payment to your settlement currency. Its US pricing page lists a 1% currency conversion fee when conversion is required.
If the charge currency differs from the client’s card currency, or the card and your business are in different countries, Stripe notes that the client’s bank or card issuer may charge them a foreign exchange fee.

Stripe’s US pricing also lists a 1.5% surcharge for international cards on top of the standard 2.9% plus 30 cents. As an example only, a $4,000 package paid with a UK card in US dollars would carry $116.30 in standard card fees plus a $60 international card surcharge; no Stripe conversion fee would apply because both the charge and your payout are in dollars, though the client’s card issuer may add its own fee. Other processors price differently, so treat this as a way to think about costs, not a quote.

Questions to Settle in the Proposal

Which currency the price is fixed in, and whether that changes for deposits and later milestones
Which payment methods you accept from clients abroad, since some local methods are limited to domestic customers; for example, Stripe’s ACH Direct Debit accepts only US bank accounts
Who bears conversion or transfer costs, stated in plain terms
How refunds are handled if exchange rates move between payment and refund

VAT Basics When the Client Is a UK Business

The UK guidance on services from abroad says that when a UK business buys services from a supplier outside the UK, the buyer generally accounts for VAT under the reverse charge in its own VAT return. HMRC’s VAT Notice 741A sets the general rule that business-to-business services are supplied where the customer belongs, and advises suppliers to keep commercial evidence that the customer is in business, with a VAT number being the strongest evidence. Without sufficient evidence, the notice says to treat the supply as business-to-consumer.

The same notice lists exceptions, including electronically supplied services such as digitally downloaded material, which follow different rules. That matters if part of what you sell is a downloadable product rather than a service.

VAT Basics When the Client Is an EU Business

The European Commission’s Your Europe portal explains that a business receiving services from a supplier outside the EU should usually pay VAT at its own country’s rate under the reverse charge, and can usually deduct it in its VAT declaration. For sales to private consumers, it states that electronic services are always taxed in the customer’s country, and it describes the One-Stop Shop as a way to declare that VAT in one country. The portal also warns that there are several important exceptions.

What This Means in Practice

Ask business clients for their VAT number and business details before you invoice, and keep them on file.
Describe the work on the invoice clearly, separating services such as rebranding and setup from any downloadable products.
Be careful with clients who buy as individuals rather than businesses, because consumer rules differ and may create obligations for the seller.
Speak with an accountant who handles cross-border VAT before taking on regular overseas consumer sales.

A Short Pre-Invoice Checklist

Client’s legal business name, address and VAT number (if any) recorded
Invoice currency and payment methods agreed in writing
Conversion and transfer costs allocated
Services and digital products listed as separate lines
Tax treatment confirmed with your tax adviser