OUTPUT TAX - 27.08.2020

Can I raise sales invoices in foreign currency?

Q. One of our customers has asked us to raise our sales invoices in euros, which we are happy to do in principle. But are there any specific VAT requirements that we need to be aware of?

A. If you issue invoices in foreign currency for supplies of goods or services that take place in the UK, you must convert the total amount of VAT payable into sterling. You must use the rate of exchange that applies at the time of supply. HMRC confirms that you can use any daily rate published in a national newspaper, although the best option is to use HMRC’s own exchange rates, published on its website (see The next step ). This information is published at the beginning of each calendar month and the rate applies for the whole month. Tip. Whichever published rate you use ensure you print a copy of the information and keep it filed with the invoice.

For a link to HMRC’s rates, visit http://tips-and-advice.co.uk/vat-dz (VA 10.10.08).


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