Foreign Currency Sales invoice
Last updated: 2023-11-30
Post view count: 128
After saving, you can now issue documents of this type. Simply choose Income > Foreign Currency Sales, and then click on Add new invoice.
A Foreign Currency Sales invoice is an accounting document confirming a transaction resulting from the sale of a product or the provision of services. It is similar to a standard VAT invoice, with the only difference being that the Foreign Currency Sales invoice is issued in a foreign currency, whereas a VAT invoice is in the currency of your country, in this case USD. Consequently, a Foreign Currency Sales invoice is used when a business makes payments in a currency other than USD. Such an invoice is valid both in domestic and international transactions, meaning it can be issued by taxpayers collaborating with companies providing services within and beyond the country. The only condition is to generate the invoice in a foreign currency.
A Foreign Currency Sales invoice differs only in currency from a traditional VAT invoice and includes the following elements:
- Type and document number,
- Document issuance date,
- Seller's name and address along with their tax identification number (VAT ID),
- Buyer's name and address along with their tax identification number (VAT ID),
- Details regarding the goods or services,
- Net price of the goods,
- VAT rate expressed in the currency of the issuing country, in this case USD,
- Gross value
Additionally, include information on the currency in which the invoice is issued.
In summary, all amounts are expressed in a foreign currency, with the exception of the tax, which must be provided in the currency of the issuing country, in this case USD.
The amount constituting the tax base, expressed in a foreign currency, is converted into USD using the average exchange rate announced by the European Central Bank (ECB) on the last working day preceding the day the tax liability arises. In the situation where the foreign currency invoice is generated before the tax liability arises, the average rate published by the ECB on the last working day preceding the day the invoice was issued is applied.
A Foreign Currency Sales invoice must be issued no later than the 15th day of the month following the month of delivery or service provision. In the case of issuing an invoice before the tax liability arises, the deadline is 30 days before the delivery of goods or provision of services, or before receiving the full/partial payment
Learn how to issue a foreign currency Sales invoices from this post