Handling export invoices in Sage

choosewisely

I'm invoicing a client for services I've provided - the client is in the republic of Ireland and is VAT registered and I myself am VAT registered.

I know if I get their VAT number I don't have to charge them VAT which simplifies things but how do I work it in Sage with me invoicing them in sterling and them paying in Euros? - Do I invoice them in Euros or do I have to do something in my bank accounts to accept Euro payments?

inmypocketnottheirs

OK here is how it works. You invocie your customer, either in sterling or euros, really does not matter which, although you will need to set up invoicing seperately in euros in sage. You just give the customer your bank details, a relatively new procedure of issuing of an IBAN (International Bank Account Number) has been adopted EU wide by all banks. Basically it is a long code, which includes your banks indentifier, sort code and your account number. Most bank statements now have the IBAN number printed on them, or if not call in or telephone your bank and ask for the IBAN number.

You then notify your customer of this IBAN number, they go to their bank and transfer the amount on the invoice. If you invoice them in sterling, their bank will convert at their exchange rate on the day, and a few days later you will get an entry on your bank account that may be a few quid different from the invoice because of the handling fee your bank will add (typically £5-10 depending). Alternatively if you invoice them in Euros, the customer's bank will transfer that exact amount to your bank who will then convert to sterling using their rate, and again probably a few quid handling fee.

Personally (and I sell around £500,000 a year in Europe) I always invoice and get paid in sterling! Bet that surprises a few readers!

choosewisely

Thanks inmypocketnottheirs