International invoices: VAT, legal information, what are your obligations?
When your business goes international, it's 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's the essential information you need to know to send invoices to your foreign customers, including VAT management, specific requirements and the case of services.
How to invoice internationally
1 - Know the different invoice formats
3 types of invoices 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 fiscal or legal value of a definitive invoice. It is used by buyers to obtain authorization to import goods, or to obtain foreign currency to pay for their purchases;
- the commercial invoice, which replaces the proforma invoice. It is issued by the supplier at the time the order is placed. This document must comply with both French legislative standards and those of the importing country;
- the customs invoice, also known as the consular invoice, which may be required by some countries. It takes the form of a form to be completed by the exporting company. It can be obtained from consular services or specialized bookshops.
2 - Understanding VAT management
There are a few basic rules you need to know about VAT in France, if you're invoicing customers.
In cross-border trade, if you had to remember one thing, it would be that VAT is not applicable on your international invoices. This means that the price of your exported goods is calculated without VAT.
Here's what you need to know in the following cases:
- For intra-Community deliveries, i.e. the sale of goods to a business customer established in another EU country, VAT is not applicable. As the seller, you issue an invoice exclusive of tax (HT), as you are not responsible for collecting VAT. It is the buyer who declares the delivery and remits 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 (exceptions will be discussed below) is not subject to French VAT.
☝️ Micro-entrepreneurs : with this status, you benefit from basic VAT exemption. When invoicing your international customers, you should generally create an invoice without VAT calculation.
3 - Include the required information on your EU and non-EU invoices
If you want to issue invoices that comply with legal requirements, you need to include the following information on your documents:
- Issue date,
- Invoice number
- buyer identification (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, if applicable,
- the rate of late payment penalties and the flat-rate indemnity to be paid in the event of late payment, for BtoB customers, etc.
When invoicing foreign customers, 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 invoices exclusive of VAT, as applicable:
- for intra-Community deliveries from France to a customer in the European Union, subject to VAT in his own country: "VAT exemption, article 262 ter I of the CGI";
- for exports to third countries: "VAT exemption, article 262 I of the CGI".
4 - Accompany invoices with additional documents
Depending on the case, purchasers or customs authorities may require additional documents to accompany invoices, such as :
- price justification (for goods, insurance, transport),
- a certificate attesting to the Community origin of the products,
- 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 forwarder can draw up these documents on your behalf.
How do I invoice for a service abroad?
The same general rule applies to the provision of services abroad, namely that they are not subject to French VAT.
For all services supplied :
- to a taxable person within the EU: the service provider must indicate 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 service provider must indicate "TVA non applicable, article 44 de la directive 2006/112/CE", or "hors du champ d'application de la TVA française, article 259-1 du CGI".
However, there are special cases, depending on the company and the services provided. For example, catering or other localizable 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's an example of an invoice for an overseas 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 tax-free invoice? You can use the example above to create your own invoice, or download the Appvizer template for a VAT-free international invoice in just a few clicks:
The advantages of electronic invoicing for international business
You can use electronic invoicing for your international invoices.
In addition to providing you with greater simplicity in your management, there are many other advantages, such as :
- cost savings,
- increased productivity,
- compliance with legal obligations,
- simplified VAT management,
- increased customer satisfaction, etc.
Using an invoicing tool saves you time in your international invoicing, as you fill in the details of your situation and the software takes care of the rest, issuing compliant invoices.
Invoicing software offers you options such as :
- Invoices with or without VAT,
- customized footers and legal notices,
- management of foreign currencies and languages,
- the choice of a ready-to-use invoice template, and the possibility 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 complete business management tool, which includes invoicing and adapts to your international needs. This is the case with TRADE.EASY, which issues 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 efficiently 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, discover our white paper produced in collaboration with TRADE.EASY. Whether you're just launching your business or in the throes of acceleration, 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?