International invoices: VAT, legal information, what are your obligations?
When your business goes international, it is essential to know how to draw up an international invoice, whatever the size of your company, and in particular the international trade standards imposed by the WTO or the European Commission.
If you are supplying goods or services outside France, within the European Community or beyond, make sure you are well informed to avoid any disappointment that could lead to a dispute with the foreign company.
Here are the essentials you need to know about sending invoices to your foreign customers, including VAT management, specific information requirements and the case of services.
How do you invoice internationally?
1 - Understanding the different invoice formats
3 types of invoice are generally used internationally:
- the international proforma invoice , which has all the features of a commercial invoice, but remains provisional and does not have the tax or legal value of a final invoice. It is used by buyers to obtain authorisation to import goods or to obtain foreign currency to pay for their purchases;
- the commercial invoice, which replaces the pro forma invoice. It is issued by the supplier at the time the order is placed. This document must comply with both French legislation and that of the importing country;
- the customs invoice, also known as the consular invoice, which may be required depending on the country. It takes the form of a form to be completed by the exporting company. It can be obtained from consular services or specialist bookshops.
2 - Understanding VAT management
You need to know a few basic rules about VAT in France, as soon as you invoice customers.
In cross-border trade, if you had to remember just one thing, it would be that the amount of VAT is not applicable on your international invoices. This means that the price of your exported goods is calculated without VAT.
Here are the clarifications to be made in the following cases:
- For intra-Community supplies, i.e. the sale of goods to a business customer established in another EU country, VAT is not applicable. As the seller, you therefore issue an invoice exclusive of tax (HT), as you are not responsible for collecting VAT. It is the buyer who declares the delivery and pays the VAT to the tax authorities to which he belongs (intra-Community VAT reverse charge).
- For deliveries abroad, i.e. goods sold to third countries outside the EU, the invoice issued must not include VAT, and must therefore show prices exclusive of tax (HT). In other words, the sale of goods or certain services (the exceptions will be discussed below) is not subject to French VAT.
☝️ Micro-entrepreneurs : with this status, you are exempt from basic VAT. When invoicing your international customers, you should generally create an invoice without calculating VAT.
3 - Include the mandatory information on your EU and non-EU invoices
Remember that in order to issue compliant and legal invoices, you must include the following information on your documents:
- the issue date
- the invoice number
- identification of the buyer (including name and address),
- supplier identification (including name and address),
- the exact description and quantity of each product,
- prices (per unit, excluding VAT and totals),
- details of VAT or VAT exemption, where applicable,
- the rate of late payment penalties and the fixed amount of compensation payable in the event of late payment, for B2B customers, etc.
When you invoice customers established abroad, specific information must be added:
- the seller's intra-Community VAT number,
- the buyer's intra-Community VAT number, for a customer based in a Member State other than France,
- the currency in which the amounts are expressed, if different from the euro,
- the exchange rate used to convert the price of the goods sold,
- the cost of transport paid by the exporter,
- VAT exemption clauses, for your invoices exclusive of VAT, depending on the case:
- for an intra-Community delivery from France to a customer in the European Union who is liable for VAT in his own country: "VAT exemption, article 262 ter I of the General Tax Code";
- for exports to third countries: "exemption from VAT, article 262 I of the CGI".
4 - Accompany invoices with additional documents
Depending on the circumstances, purchasers or customs authorities may require additional documents to accompany invoices, such as :
- information to justify the price (of the goods, insurance, transport),
- a certificate attesting to the Community origin of the products,
- an invoice endorsement, which can be provided by the Chamber of Commerce and Industry,
- a certificate of conformity for the goods, etc.
💡 Good to know: the freight forwarder can draw up these documents on your behalf.
How do I invoice for a service provided abroad?
The same general rule applies to the provision of services abroad, i.e. they are not subject to French VAT.
For any service supplied :
- to a taxable person within the EU: the service provider must state the customer's intra-Community VAT number and the words "reverse charge" and "Article 196 of Directive 2006/112/EC";
- to a taxable person established outside the EU: the supplier must indicate "VAT not applicable, Article 44 of Directive 2006/112/EC", or "outside the scope of French VAT, Article 259-1 of the General Tax Code".
However, there are special cases depending on the company and the services provided. For example, restaurant services or other localisable services supplied to customers based abroad are taxable under French VAT.
💡 Good to know: service providers who supply services by electronic means within the EU (telecommunications, radio and television broadcasting) must desormais déclarer et payer la TVA selon le taux appliqué par l'État du client professionnel, en passant par la procédure spécifique " Moss ".
Example of an international invoice
Here is an example of an invoice for a foreign customer based in Morocco. The exchange rate does not need to be specified, as the invoice was issued in euros.
▶ ︎ How do I create a VAT-free invoice? You can use the example above as a guide to create your invoice, or download the Appvizer template for an international invoice without VAT in just a few clicks:
The advantages of electronic invoicing for international transactions
You can use electronic invoicing for your international invoices.
As well as making it simpler for you to manage, there are many other benefits, including
- cost savings
- increased productivity
- compliance with legal obligations,
- simplified VAT management
- increased customer satisfaction, etc.
Using an invoicing tool saves you time when invoicing internationally, because you fill in the details of your situation and the software takes care of the rest, issuing compliant invoices.
Invoicing software offers options such as :
- Invoices with or without VAT,
- customised footers and legal notices,
- management of foreign currencies and languages
- the choice of a ready-to-use invoice template, with the option of adapting it ad infinitum, adding your logo, etc.
You reduce the risk of forgetting or making mistakes, and thanks to the recording of your customer information, you can also manage recurring invoicing and customer reminders.
You can also opt for a comprehensive business management tool that includes invoicing and adapts to your international needs. This is the case with TRADE.EASY, which produces your compliant proforma invoices in just a few clicks, as soon as an order is created. With its modules for sales management, order tracking, logistics management and more, the solution is ideal for effectively managing and structuring your international business.
👉 And if you'd like to find out more about how to get your growth off to a flying start, read our white paper produced in collaboration with TRADE.EASY. Whether you're just launching your business or just ramping up, you'll find best practices and actionable advice:
Ready to automate the management of your international digital invoices and stop seeing VAT management as a headache?