Can a UK Company Issue Invoices in a Foreign Currency (USD/EUR)?

Yes, You Can Invoice in Foreign Currency

If your client is overseas or requests USD/EUR, you can invoice in that currency. But if you're VAT registered, you must also show the GBP amount and VAT calculation.

Example: USD Invoice from UK

Invoice Number: INV-0045
Currency: USD

Services: Web Design
Net: $2,500
VAT (converted to GBP at 1.27): £1,968 (20% = £394)
TOTAL USD: $3,175 (approximately £2,500 USD @ 1.27 = £1,969)

Exchange rate used: 1 GBP = 1.27 USD (date: 15 May 2026)

Note: Final amount payable in USD. GBP amounts shown for VAT purposes only.

The Key Rules

• Invoice can be in any currency customer prefers
• Show exchange rate used and date
• If VAT registered: show VAT in GBP (not converted to USD)
• For your records: convert to GBP and record in accounts books

Currency Risk

By the time customer pays (Net 30), exchange rates may have moved. You might receive less than quoted. Protect yourself by:

• Requesting payment in GBP instead
• Adding 2-3% currency buffer to price
• Using fixed payment deadlines (not open-ended)

FAQ

Should I charge different prices in USD vs GBP?

You can, to account for currency risk. But be transparent. Don't charge 50% more in USD for the same service — customers notice.

What exchange rate should I use?

Use the rate on the invoice date, from a reputable source (XE.com, OFX, or your bank's rate). Document it on the invoice.