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How to make an invoice abroad
Perhaps you have landed your first foreign customer? Congratulations!
Perhaps you are also wondering how one invoice to abroad must look like, and whether there must be VAT on an invoice to abroad or not.
You don't need to search any further - below we have made it easy and clear for you to get started with sending invoices abroad both in the EU and the world.
Invoice your foreign customers with Factofly
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help nearly 3,000 others with an everyday life without administration – regardless of where in the world your customers are located.
How to make an invoice abroad
Som udgangspunkt bør en faktura til udlandet indeholde de samme oplysninger som en faktura til en dansk virksomhed.
Therefore, you create the invoice in the same way as a regular invoice for a Danish company. If your customer speaks English and not Danish, you can quickly change the language of your invoice to English in your accounting program.
The following information must be on an invoice abroad:
- Invoice date
- Invoice number
- Seller's name, address and VAT number
- Buyer's name and address
- Description and quantity of goods sold
- Product price with or without VAT
- Discounts
- Delivery date (date of work completed)
- Possibly VAT amount
When selling to a VAT registered company in a country in Europe, you must be aware of having this on your invoice:
- Country code in connection with own VAT number
- The customer's country code and VAT number
- The VAT number is used in the same way as the Danish one CVR number
Is VAT due on invoices abroad?
When it comes to VAT on invoices abroad, a distinction is made between whether companies or private individuals are being invoiced, then whether the customer is based inside or outside the EU, and whether it is a product or service you are selling. Here the countries outside the EU are referred to as "the world" and the EU countries as the EU.
As a general rule, however, there is usually no Danish VAT on an invoice abroad if it is for a company. In most cases, the customer is themselves responsible for reporting and paying the VAT in the country they belong to - according to the VAT rules in the applicable country.
A VAT example:
A customer who is a company, from e.g. The Netherlands and buys a service from you do not normally have to pay Danish VAT. Instead, they are obliged to follow the VAT rules that apply in the Netherlands. This is called reverse payment obligation, or in English: 'reverse charge'.
VAT on trade with companies in the EU
Sales of services to other companies in the EU are usually exempt from Danish VAT, which must also appear on the invoice. This is where the general rule of reverse obligation to pay normally applies.
VAT on trading with companies in the world (outside the EU)
Sales of services to companies in the world are normally also exempt from Danish VAT. However, there are a few exceptions, depending on the service you are selling, and there are also certain requirements you must be able to meet. Read more about these here.
VAT on trade with private individuals in the EU
Sales of services to private individuals in the EU are generally not exempt from VAT. This must therefore also be stated on the invoice with Danish sales tax (25%).
However, the EU has set a limit for significant sales of a maximum of 35,000 euros.
This means that if the sale exceeds this amount, VAT must be charged according to the rules of the customer's home country.
VAT on trade with private individuals in the world (outside the EU)
Sales of services to private individuals must, as a rule, be subject to Danish sales tax. However, as always, there are exceptions where you only have to charge Danish VAT for certain types of services if the service is used in Denmark. Read more about these here.
Invoices in foreign currency
If you must invoice in a foreign currency, the Danish price in kroner must be converted to the currency in which you want to invoice your customer, e.g. euros.
When you convert from Danish kroner to another currency, there may be an exchange rate difference which must be booked.
If the invoicing takes place in a foreign currency, apart from euros, and there is VAT on your invoice, the VAT amount must also be described in Danish kroner.
Fortunately, there are many invoicing services that make it much easier and time-saving for you. Most often, you will find various functions for your foreign invoices in your accounting program, if you have not yet chosen the completely easy solution with Factofly.
At Factofly, you can easily create an invoice abroad and choose the currency your invoice should be in - without having to think about anything else.
Invoice your foreign customers with Factofly
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help nearly 3,000 others with an everyday life without administration – regardless of where in the world your customers are located.
Are you in doubt about your invoice abroad?
If you sit back and are still in doubt about your specific situation, whether your sale is exempt from VAT or something else, you can always make sure by contacting treasure.
You can also create your foreign invoice with Factofly, then we make sure that the invoice is correct and that all rules are complied with and send the invoice correctly to your foreign customer.
If you have an accountant or bookkeeper, he or she will also be able to advise and guide you if you are in doubt about invoicing your foreign customers.
How to make an invoice abroad
Perhaps you have landed your first foreign customer? Congratulations!
Perhaps you are also wondering how one invoice to abroad must look like, and whether there must be VAT on an invoice to abroad or not.
You don't need to search any further - below we have made it easy and clear for you to get started with sending invoices abroad both in the EU and the world.
Invoice your foreign customers with Factofly
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help nearly 3,000 others with an everyday life without administration – regardless of where in the world your customers are located.
How to make an invoice abroad
Som udgangspunkt bør en faktura til udlandet indeholde de samme oplysninger som en faktura til en dansk virksomhed.
Therefore, you create the invoice in the same way as a regular invoice for a Danish company. If your customer speaks English and not Danish, you can quickly change the language of your invoice to English in your accounting program.
The following information must be on an invoice abroad:
- Invoice date
- Invoice number
- Seller's name, address and VAT number
- Buyer's name and address
- Description and quantity of goods sold
- Product price with or without VAT
- Discounts
- Delivery date (date of work completed)
- Possibly VAT amount
When selling to a VAT registered company in a country in Europe, you must be aware of having this on your invoice:
- Country code in connection with own VAT number
- The customer's country code and VAT number
- The VAT number is used in the same way as the Danish one CVR number
Is VAT due on invoices abroad?
When it comes to VAT on invoices abroad, a distinction is made between whether companies or private individuals are being invoiced, then whether the customer is based inside or outside the EU, and whether it is a product or service you are selling. Here the countries outside the EU are referred to as "the world" and the EU countries as the EU.
As a general rule, however, there is usually no Danish VAT on an invoice abroad if it is for a company. In most cases, the customer is themselves responsible for reporting and paying the VAT in the country they belong to - according to the VAT rules in the applicable country.
A VAT example:
A customer who is a company, from e.g. The Netherlands and buys a service from you do not normally have to pay Danish VAT. Instead, they are obliged to follow the VAT rules that apply in the Netherlands. This is called reverse payment obligation, or in English: 'reverse charge'.
VAT on trade with companies in the EU
Sales of services to other companies in the EU are usually exempt from Danish VAT, which must also appear on the invoice. This is where the general rule of reverse obligation to pay normally applies.
VAT on trading with companies in the world (outside the EU)
Sales of services to companies in the world are normally also exempt from Danish VAT. However, there are a few exceptions, depending on the service you are selling, and there are also certain requirements you must be able to meet. Read more about these here.
VAT on trade with private individuals in the EU
Sales of services to private individuals in the EU are generally not exempt from VAT. This must therefore also be stated on the invoice with Danish sales tax (25%).
However, the EU has set a limit for significant sales of a maximum of 35,000 euros.
This means that if the sale exceeds this amount, VAT must be charged according to the rules of the customer's home country.
VAT on trade with private individuals in the world (outside the EU)
Sales of services to private individuals must, as a rule, be subject to Danish sales tax. However, as always, there are exceptions where you only have to charge Danish VAT for certain types of services if the service is used in Denmark. Read more about these here.
Invoices in foreign currency
If you must invoice in a foreign currency, the Danish price in kroner must be converted to the currency in which you want to invoice your customer, e.g. euros.
When you convert from Danish kroner to another currency, there may be an exchange rate difference which must be booked.
If the invoicing takes place in a foreign currency, apart from euros, and there is VAT on your invoice, the VAT amount must also be described in Danish kroner.
Fortunately, there are many invoicing services that make it much easier and time-saving for you. Most often, you will find various functions for your foreign invoices in your accounting program, if you have not yet chosen the completely easy solution with Factofly.
At Factofly, you can easily create an invoice abroad and choose the currency your invoice should be in - without having to think about anything else.
Invoice your foreign customers with Factofly
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help nearly 3,000 others with an everyday life without administration – regardless of where in the world your customers are located.
Are you in doubt about your invoice abroad?
If you sit back and are still in doubt about your specific situation, whether your sale is exempt from VAT or something else, you can always make sure by contacting treasure.
You can also create your foreign invoice with Factofly, then we make sure that the invoice is correct and that all rules are complied with and send the invoice correctly to your foreign customer.
If you have an accountant or bookkeeper, he or she will also be able to advise and guide you if you are in doubt about invoicing your foreign customers.
