Department for International Trade – http://www.great.gov.uk
If you ship goods overseas, a commercial invoice must be included with the shipment. Commercial invoices contain more information than a normal invoice including the:
Some countries require invoices to be certified by a Chamber of Commerce or embassy. Your local Chamber of Commerce should be able to tell you the requirements of your target market.
Currency exchange rates go up and down. Setting a price in a foreign currency could see the value of your invoice rise or fall depending on the exchange rate on the day it is paid.
If you haven’t fixed your exchange rate, you haven’t fixed your price.
You can pass the risk of currency fluctuation on to the buyer by invoicing in pounds. The buyer may not want to take on the risk making you less competitive than someone invoicing in the buyer’s local currency.
Sometimes the buyer may be happy to pay in pounds. The currency you invoice in should be part of your negotiations with the buyer.
Invoicing in the buyer’s currency could make you more competitive but you will be exposed to the risk of currency fluctuation.
You can reduce this risk by:
You should also account for the cost of exchanging currency in your pricing.
Think about your exchange strategy and consider getting financial advice on exchange rates (sometimes called FX).