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Invoice for US company

Discussion in 'Accounting and Legal' started by Nina Porter, Apr 27, 2017.

  1. Nina Porter

    Nina Porter New Member

    SOS everybody,

    I've done a small translation job for a US company. I've never worked for the US before. And probably won't do it again by the looks of tax things. Can someone help me with the invoice? I've read there is a 30% tax rate that gets taken and that I need to fill in a W8 form?? Also, how did you get paid. You probably loose money doing a bank transfer, don't you?
  2. Kate Debitoor

    Kate Debitoor New Member

    Hi Nina :)

    Working out tax abroad is quite complicated - especially in the US as there can be both federal and state laws. The rules depend a lot on your specific circumstances (where the customer was based, how much you charged, etc.) so I'd suggest looking at gov.uk, as they explain all the different rules and guidelines in quite a lot of detail: https://www.gov.uk/guidance/exporting-to-the-usa#taxation-in-the-us

    When you send an invoice, you can set payment terms to tell the client how to pay you. With a bank transfer, it's likely that your customer will have to pay the bank fees rather than you, but it depends on the rules set by your bank. You could also look at online currency exchange services as these often save you quite a bit in fees.

    Also bear in mind that when you are selling services to customers in the US, you can send invoices in either GBP or USD. However, if you use USD, it's likely that the exchange rate will fluctuate, so you'll need to record this in your accounts. We have written about how you can this, here: https://debitoor.com/dictionary/exchange-gain-or-loss

    Fortunately, online accounting and invoicing software like Debitoor makes it easier for you to send invoices to customers abroad. With Debitoor, you have the option to change the language and currency on your invoices, and the exchange rate automatically updates to reflect up-to-date rates:

    I hope this helped answer your question! :)
  3. Lupita

    Lupita Member

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