Invoicing foreign clients: a guide for freelancers

You can invoice clients abroad without your own company through Paidin. The invoice can be issued in EUR, USD or GBP as well as Swedish kronor. Paidin sends it, receives the payment and pays out your salary in SEK with the tax handled. You do not need to register for VAT abroad, open currency accounts or learn foreign tax rules. Here is how it works in practice.

Paidin handles international invoicing

When you have an assignment for a foreign client, you create an invoice in Paidin just as you normally would. You enter the client's details, what the assignment covers and the currency the invoice should be issued in. Paidin supports invoicing in EUR, USD and GBP as well as Swedish kronor.

Paidin is your employer and formally issues the invoice to your client. This means your client pays into Paidin's bank account. Once the payment has arrived, Paidin converts the amount to Swedish kronor and pays out your salary after deductions for tax, employer contributions and Paidin's service fee. You receive a salary statement showing how the invoice amount was split.

What makes Paidin particularly useful for international invoicing is that you skip all the administrative steps that would otherwise be required. You do not need to register for VAT in other countries, find out which tax rules apply in your client's country or manage currency accounts. Paidin takes care of all of this.

VAT when invoicing abroad

The VAT rules depend on whether your client is a business or a private individual, and whether the client is inside or outside the EU. Paidin makes sure the right rules are applied to every invoice, but it helps to understand the basics.

Business clients within the EU

When you invoice a business in another EU country, reverse charge applies. No Swedish VAT is added to the invoice. Instead, the buyer reports the VAT in their own country. The invoice is marked "Reverse charge" and shows the client's VAT number. It is worth checking that the number matches the client, which you can do in the EU's VIES service.

Business clients outside the EU

When you invoice a business outside the EU, for example in the United Kingdom, the USA, Canada or Australia, no Swedish VAT applies. The invoice is issued with 0 % VAT as an export of services. Paidin sets the VAT to zero and adds the correct reference on the invoice.

The United Kingdom has been outside the EU since Brexit, so a UK client is treated like any other client outside the EU, not under the EU reverse charge rules.

Private individuals

If your client is a private individual in another EU country, Swedish VAT normally applies, because the service is considered supplied in Sweden when the buyer is not a business. For private individuals outside the EU the rules depend on the type of service. Contact Paidin if you are unsure which VAT rate applies to your assignment.

Currency and exchange rates

Paidin can issue invoices in EUR, USD and GBP. Your client pays the invoice in the currency stated, and Paidin receives the payment. Once the money has arrived, Paidin converts the amount to Swedish kronor. Your salary is always paid out in SEK, whatever currency the invoice was issued in.

The exchange rate used is the rate on the payment date, the day your client's payment is registered with Paidin. The final amount in kronor can therefore differ slightly from what it was worth when the invoice was created. If the krona has weakened against the invoice currency you receive slightly more in SEK, and if it has strengthened you receive slightly less.

In practice the differences are rarely large with normal payment terms. The invoice states a due date, normally 30 days, which limits how far the rate can move. You can see the exact rate applied on your salary statement.

FastPay, where you are paid before your client pays, is only available for invoices in SEK.

What your foreign client needs to know

Your client does not need to do anything differently from paying any other invoice. Paidin sends an invoice with everything required: amount, currency, bank details, VAT reference and payment terms. The invoice can be sent by email as a PDF.

The client pays into Paidin's bank account. For payments from abroad, the client uses Paidin's IBAN and BIC/SWIFT code, which are clearly shown on the invoice. The payment is handled as a normal international bank transfer. Paidin's full company details, which your client may need to register Paidin as a supplier, are on the page Contact details for Paidin.

Paidin needs your client's VAT number on the customer card. For a business within the EU it is what makes reverse charge apply. For a business outside the EU, for example in the United Kingdom, enter the client's VAT number or equivalent tax registration number.

Frequently asked questions

Which currencies can I invoice in?

SEK, EUR, USD and GBP. If your client wants to pay in another currency, contact Paidin and we will look into it. Whatever currency the invoice is issued in, your salary is paid out in SEK.

Who carries the risk if the exchange rate changes?

Paidin converts the amount to SEK on the day the payment is registered, so the final amount in kronor depends on the rate that day. With normal payment terms (30 days) the movements are usually small. You see the exact amount in SEK on your salary statement.

Do I need to know the VAT rules in my client's country?

No. Paidin applies the right VAT rules based on the client's country and type (business or private individual). You only need to enter correct information about the client when you create the invoice. Paidin takes care of the rest, including reverse charge where it applies.

Can I invoice a client in the United Kingdom?

Yes. Choose GBP as the currency if your client wants to pay in pounds, and register the client with their UK address and VAT number. No Swedish VAT is added, because the UK is outside the EU.

Next steps

• Read more about VAT in the VAT guide for freelancers.
• See how umbrella employment works in How self-employment works.
• Work out what you will be paid in the salary calculator.