Invoicing in foreign currency from Australia
How to issue an invoice in USD, EUR or another currency and still meet the GST rules.
Australian businesses can issue invoices in a foreign currency. If the invoice is a tax invoice, the GST must still be stated in Australian dollars or the invoice must give enough information to work it out. For your BAS and income tax you also need the amounts in Australian dollars, using an acceptable exchange rate. Many sales to customers overseas are GST-free exports, but the rule depends on what you supply, so check the ATO guidance. In 4invoices you can pick any currency, enter the exchange rate and set the tax rate on each line, for example 10% or 0%. The invoice shows the amounts and the PDF is ready to download. 4invoices does not fetch rates, so you type the rate and keep a record of where it came from.
- You can invoice in any currency.
- For a tax invoice, the GST must be shown in AUD or be easy to work out.
- Keep a record of the exchange rate you used and its source.
- Many exports are GST-free, but check your case.
How it works
Agree the currency with the customer. Put the currency clearly on the invoice.
Choose the GST treatment. For a domestic customer, use the normal rate. For an overseas customer, check whether the supply is a GST-free export.
Pick a source for the exchange rate, for example the Reserve Bank of Australia or your bank, and use it consistently. Enter the rate in 4invoices.
Keep the AUD amount for your records. Your accounting software or tax agent uses it for the BAS and the tax return.
Legal references
- A New Tax System (Goods and Services Tax) Act 1999 - GST on taxable supplies and GST-free exports.
- GSTR 2001/2 - ATO ruling on foreign currency conversions for GST.
- Australian Taxation Office - exchange rates and foreign currency for tax purposes.
Frequently asked questions
Can I issue an invoice in US dollars from Australia?
Yes. Show the currency clearly. If it is a tax invoice, make sure the GST can be seen in Australian dollars or worked out from the invoice.
Which exchange rate should I use?
Use a rate the ATO accepts, such as a bank or Reserve Bank rate, and use the same source each time. Ask your tax agent for the rate to use in your case.
Is an export invoice always GST-free?
No. Some exports and services to overseas customers are GST-free, but only if the ATO conditions are met. Read the ATO guidance or ask your agent.
Does 4invoices fetch exchange rates or file my BAS?
No. You enter the exchange rate yourself. 4invoices does not fetch rates, calculate your BAS or connect to the ATO. It creates the invoice with the rate on each line and gives you a PDF.