International Billing Guide
International billing is more than currency conversion. You need the right Incoterm, the right tax treatment (reverse charge? withholding?), the right customs paperwork, and a commercial invoice that doesn't get held at the border. This guide collects the essential terms and the tools you'll actually use.
Tools
(3)Glossary
(5)Frequently asked questions
What's a commercial invoice and when do I need one?
A commercial invoice is a customs document used for international shipments of physical goods. It declares the goods, value, origin, and parties involved so customs authorities can assess duties. It's required for any cross-border shipment of physical products outside a customs union.
What are Incoterms and which one should I use?
Incoterms (International Commercial Terms) are standard rules defining who is responsible for shipping, insurance, customs, and risk in international trade. Common ones: EXW (buyer pays everything), FOB (seller pays to port), CIF (seller pays to destination port + insurance), DDP (seller pays everything including duties).
What currency should I invoice international clients in?
Invoice in the currency that minimises FX risk for both parties — typically the seller's home currency for small amounts, or USD/EUR as a neutral reference for larger contracts. KipBill supports 30 currencies and lets each client have a default currency.
Do I need a tax ID number to bill abroad?
Yes — both your tax ID (NIF, EIN, VAT number, ABN, etc.) and ideally the client's tax ID should appear on the invoice. For EU cross-border B2B you also need an EORI number for goods shipments, plus the buyer's VAT ID for reverse charge.
What's an HSN code and when do I use it?
HSN (Harmonized System Nomenclature) codes are international product classification codes. India requires them on GST invoices. They're also used in customs declarations worldwide to identify goods and apply the correct duties.