--- title: How to Invoice a US Client from Europe date: 2026-07-08T08:50:40Z modified: 2026-07-08T08:50:41Z permalink: "https://abill.io/en/blog/how-to-invoice-a-us-client-from-europe/" type: post status: publish excerpt: Just landed your first US client? Before you send that invoice, make sure you get the VAT, currency, and payment method right. Learn how to invoice US clients from Europe, avoid costly transfer fees, and get paid without unnecessary hassle. wpid: 4069 categories: - For freelancers translation_priority: - Optional featured_image: "https://abill.io/app/uploads/2026/07/pexels-annushka-ahuja-8055439-scaled.jpeg" author: Anna Macko --- Landing a US client as a European freelancer is a big deal. US companies pay well, they’re used to working with international contractors, and the dollar is strong. But then you sit down to create the invoice and the questions start piling up. So how to invoice a US client from Europe? Do I charge VAT? What currency? How do they actually send me the money? Why did I receive less than I invoiced? This guide answers all of it — clearly, without the jargon. ### The VAT Question – The One That Trips Everyone Up Let’s get this out of the way first, because it’s where most European freelancers make mistakes. **When you invoice a US business client, you do not charge VAT.** Here’s why. VAT is a European tax. US companies are not part of the EU VAT system. When you provide services to a business outside the EU, those services are considered a zero-rated export. No VAT applies, regardless of whether you’re VAT-registered or not. This is true whether your client is in New York, San Francisco, or anywhere else in the US. What you do need to include on the invoice is a note confirming why no VAT is charged. The standard wording is: > _“VAT not applicable – services exported outside the EU (zero-rated)”_ Some accountants prefer the more formal version: > _“Outside scope of VAT – place of supply is outside the EU”_ Either works. The point is to make it explicit so your client’s accountant doesn’t come back asking why there’s no VAT line. **One important nuance:** This applies when you’re invoicing a US _business_ (B2B). If you’re invoicing a US _individual_ (B2C), a private person, not a company, VAT applies. ### What Goes on the Invoice Every freelancer who needs to invoice a US client should make sure their invoice includes the correct tax and payment details. | Field | What to include | | --- | --- | | Your name and address | Your full legal name and address, or your intermediary’s details | | Your tax ID | Your local tax number, VAT number, or intermediary’s registration | | Client’s name and address | The US company’s full legal name and address | | Invoice number | Unique and sequential | | Invoice date | Date of issue | | Due date | Standard is Net 30 for US clients | | Description of services | Clear, specific – “Website design for \[project\]”, not just “Services” | | Amount | In agreed currency (see below) | | VAT | €0.00 / $0.00 – with the zero-rate note | | Payment details | How they send you the money (see below) | US companies are used to receiving invoices from international contractors. A clean, professional invoice with these fields will not raise any flags on their end. ### Currency: USD or EUR? You can invoice in either. There’s no legal requirement to use one or the other. But the choice has practical consequences. **Invoicing in USD:** - Easier for the US client – they pay in their own currency, no FX conversion on their end - You take on the exchange rate risk and if the dollar weakens between invoice date and payment date, you receive less in EUR - You’ll need a way to receive USD (more on this below) - Your accounting records need to show the EUR equivalent at the ECB rate on the invoice date **Invoicing in EUR:** - Simpler for your accounting – no conversion needed - The FX risk shifts to the client, they pay more or less depending on the rate - Some US clients prefer USD; others don’t mind EUR at all - SWIFT transfers in EUR from a US bank are common and work fine **Practical recommendation:** If you have a USD account (via Wise, Revolut, or Abillio), invoice in USD, it removes friction for the client and you get the full amount. If you don’t, invoice in EUR and let the client handle the conversion. Either works; just be consistent and document the rate if you convert. ### The Real Problem: Getting the Money Across This is where European freelancers lose money without realising it. The US banking system runs on ACH (Automated Clearing House) for domestic transfers. ACH is fast, cheap, and works perfectly within the US. It is not compatible with SEPA, the European payment system. So when a US client tries to pay your European IBAN directly, the money has to travel through SWIFT – the international wire transfer network. SWIFT works, but it has problems: **Correspondent bank fees.** Your money passes through one or more intermediary banks on the way from the US to Europe. Each one can deduct a fee – typically $10–$40 without telling you. You invoice $2,000 and receive $1,940. No explanation, no breakdown. **Slow settlement.** SWIFT transfers can take 3–7 business days. Sometimes longer if there’s a compliance hold. **FX spread.** If the transfer involves currency conversion, the bank applies its own exchange rate, usually worse than the mid-market rate by 1–3%. The result: you receive less than you invoiced, you don’t know exactly why, and your client thinks they paid the right amount. There are better ways. ### Payment Methods: What Actually Works **Option 1: Wise (recommended for most freelancers)** Wise gives you a US bank account number – a real ACH routing number and account number, not a workaround. Your US client pays you as if they’re paying a US company. The money arrives in your Wise account in USD, and you convert to EUR at the mid-market rate plus a small transparent fee (typically 0.4–0.6%). The fee breakdown is shown clearly. You know exactly what you received and why. No correspondent bank surprises. To use this: open a Wise account, get your USD account details, and add them to your invoice under “Payment details.” Your client sends an ACH transfer that’s free on their end, fast, and clean. **Option 2: PayPal** US clients are very comfortable with PayPal. It works, it’s fast, and there’s no SWIFT complexity. The downside: PayPal’s fees are higher (typically 3–4% for international transfers) and their exchange rates are worse than Wise. For smaller invoices it’s fine. For larger amounts, the cost adds up. **Option 3: SWIFT bank transfer** If your client insists on a traditional bank transfer, provide your IBAN and BIC/SWIFT code. Add a note on the invoice: _“All bank transfer fees to be borne by the payer.”_ This doesn’t guarantee you’ll receive the full amount – correspondent banks don’t always respect this, but it establishes the expectation. For SWIFT transfers, also provide your bank’s full name and address. US banks often require this for international wires. **Option 4: Use an intermediary (Abillio)** If you don’t have a registered company and need a compliant invoice with a legal entity behind it, an intermediary like Abillio handles the whole stack – invoice generation, USD payment collection, and payout to you in your preferred method and currency. _[Here’s a full breakdown of how invoicing without a company works](https://abill.io/en/blog/freelancer-invoicing-without-a-company-complete-guide/)_ Your US client pays Abillio’s entity. Abillio pays you. The invoice is fully compliant, the VAT treatment is correct, and you receive your payout via bank transfer, Wise, PayPal, or card, without needing to set up a Wise business account or navigate SWIFT yourself. ### The Invoice Template Here’s what a clean invoice to a US client looks like: ``` INVOICE From: [Your Name / Abillio on your behalf] [Your Address] Tax ID: [Your tax number or Abillio's registration] To: [US Company Name] [US Company Address] Invoice #: 2026-001 Invoice date: [Date] Due date: [Date + 30 days] Services: [Description of work] $[Amount] VAT: $0.00 (Services exported outside the EU — zero-rated) Total due: $[Amount] USD Payment details: Bank: [Your bank or Wise] Account number: [ACH routing + account, or IBAN + BIC] Reference: Invoice #2026-001 All bank transfer fees to be borne by the payer. ``` ### Do You Need to Report This Income? Yes. Just because you don’t charge VAT doesn’t mean the income is tax-free. You still need to declare it as income in your home country and pay applicable income tax. If you’re VAT-registered in your EU country, you’ll typically report zero-rated exports on your VAT return, but you don’t owe VAT on them. Check with your local tax authority or accountant for the specifics of your country. If you’re using Abillio, your income is reported via DAC7 to your local tax authority. You’ll receive a transaction summary for your records. ### Common Mistakes to Avoid **Charging VAT on a US client.** You don’t owe it, and your client’s accountant will flag it immediately. The invoice will come back to you for correction. **Not specifying who pays transfer fees.** Without this, correspondent banks deduct fees mid-transfer and you receive less than invoiced. Always add “fees to be borne by the payer.” **Using your personal bank account for SWIFT.** Many personal accounts aren’t set up for international wires. Use a business account, Wise, or an intermediary. **Invoicing in USD without a USD account.** If you invoice in USD but only have a EUR account, the conversion happens at your bank’s rate – usually worse than Wise or mid-market. Either get a USD account or invoice in EUR. **Vague service descriptions.** “Services – $3,000” will get questioned by the client’s finance team. Be specific: “Brand identity design for \[Project Name\], delivered \[date range\].” **Using an incomplete invoice.** Every invoice a US client freelancer sends should clearly state the services provided, payment terms, and why VAT is not charged. ### The Simplest Path If you’ve just landed your first US client and want to get paid cleanly without setting up multiple accounts or navigating SWIFT: 1. **Sign up to Abillio** at [app.abill.io](https://app.abill.io) 2. **Create your invoice**: set the amount in USD, add the service description 3. **Send it to your client**: Abillio generates a compliant invoice with the correct VAT treatment 4. **Your client pays Abillio**: via wire transfer or ACH 5. **You receive your payout**: via bank transfer, Wise, PayPal, crypto or card, in EUR or USD No Wise account setup. No SWIFT complexity. No VAT confusion. The invoice is legally compliant, the payment is clean, and you know exactly what you’ll receive before you send it. **Got a US client waiting on an invoice?** [Sign up to Abillio →](https://app.abill.io) — invoice in USD, get paid globally, no company registration needed. _For freelancers in Latvia and Estonia: Abillio handles full tax compliance, including income tax withholding. For all other countries: Abillio handles compliant invoicing and global payouts – income tax obligations in your home country remain yours to manage._