Issuing an Invoice to a Foreign Client as a Freelancer

When you land your first foreign client, the joy is huge. But right after that comes the question: “How exactly do I issue them an invoice?”. As a freelancer in Bulgaria, you have the right to work with companies from all over the world. The process is not complicated as long as you follow a few basic rules for taxes and currencies.

In 2026, with the introduction of the euro, things became even easier. Here is everything you need to know to invoice your international projects properly and without stress.

1. What details must the invoice contain?

For your invoice to be valid internationally, it must contain standard fields translated into English:

  • Your details: Name, address, and identification number (EGN or Bulstat/UIC). If you have a VAT number, you must include it.
  • Client details: Company name, address, and their tax number (Company ID or VAT number if they are in Europe).
  • Dates: Date of issue and date of the tax event (when the work was actually delivered).
  • Description of the service: Be as specific as possible, e.g., “Graphic design services for April 2026”.
  • Amount and currency: Clearly stated final price for the service.

2. Should you charge VAT?

This is the most common question. The answer depends on where your client is located and whether they are a company (B2B) or an individual (B2C).

  • Client company in the EU: If you work with a company in Germany or France, you DO NOT charge VAT on your invoice. The “reverse charge” mechanism is used. The tax is owed by the recipient in their country. It is mandatory to write the legal grounds on the invoice: “Reverse charge – Art. 44 of the VAT Directive”. To understand the exact logic of this law, read What Does Reverse VAT Charging Mean?.
  • Client company outside the EU (USA, UK): Here you also do not charge VAT. The service has its place of supply outside Europe. The mandatory text is “Outside the scope of EU VAT”. For more specific situations where tax is not due, check out Opportunities for VAT Exemption in Bulgaria.

Even if you do not charge VAT, when working with EU companies you are obliged to register under Art. 97a of the VAT Act (registration for services) before your first invoice. If your niche is in tech, you can also take a look at our specialized guide How to Invoice Foreign Clients as an IT Freelancer in Bulgaria

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3. Currencies and exchange rates

Since 2026, our main currency is the euro. If you invoice in euros, you have no additional calculations or exchange rate differences. But what happens if a client in the US wants an invoice in US dollars (USD) or a client in London pays in British pounds (GBP)?

  • You have the right to issue the invoice in whatever currency you agree upon.
  • However, the invoice itself must contain the euro equivalent, calculated at the central exchange rate of the BNB (Bulgarian National Bank) for the date of the tax event.
  • To understand how this affects your year-end reports, see Accounting Transition to the Euro: A Business Guide.

4. Automate invoicing with Invoice Smetalnik

Issuing a foreign invoice manually in Word or Excel hides huge risks of exchange rate errors and missing mandatory texts. The Invoice Smetalnik system is designed specifically to solve these problems for freelancers.

Here is how the system makes invoicing abroad a task that takes under 1 minute:

  • Up-to-date BNB exchange rates: Choose a currency different from your base one (e.g., USD) and the system will automatically calculate the amounts at the official BNB rate for the day. No more manual searching for rates on websites.
  • Automatic client data filling: Once you enter your foreign client, all their details (name, VAT number, address) are populated automatically on every subsequent invoice.
  • Invoice or proforma with one click: If the client abroad requires a “Proforma Invoice” before issuing the payment, you create it with the same effort from the exact same place.
  • AI expense recognition: If you buy software or pay subscriptions to foreign providers, upload a photo or PDF. Smetalnik automatically extracts the amounts, supplier, and expense category – without manual entry.
  • Track everything visually: The software gathers all your financial data in one place and creates interactive monthly charts. You clearly see your international income and make business decisions based on real data.

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Conclusion

Working with international clients expands your opportunities immensely. VAT rules and currency recalculations sound scary only the first time. When you use the right tools like Invoice Smetalnik, the process becomes fully automatic, fast, and secure.

Author

Деси / Desi
is an accountant with over 10 years of experience, specializing in working with freelancers and small businesses. Based in Varna, she combines her professional expertise with a passion for making accounting accessible and easy to understand for everyone.

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