The short answer
Choose the law and courts in the contract, say which currency you invoice in and who pays bank charges, and get your client's business details before you invoice. For services to a business client outside the UK, no UK VAT is usually due, but you need to keep evidence. For a private person abroad the rules differ, and a large or regulated project is worth professional advice.
Governing law and courts
Name the law that governs the contract and the courts that will hear a dispute. Without that, the court has to work out which country's law applies, which is slower and less predictable. Naming your own part of the UK (England and Wales, Scotland or Northern Ireland) is the usual starting point. Some clients will ask for their own law, which is a negotiation.
Winning isn't the same as being paid. A UK court judgment may have to be enforced in the client's country, which takes longer and costs more than at home. For a new overseas client a deposit or payment in advance protects you better than any clause (deposits and kill fees).
Late payment interest
Statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 apply to contracts between businesses. If you choose UK law and are based in the UK, the Act can apply even though the client is abroad: it stops applying only where the chosen law has no significant connection with the contract (section 12). If the client's law governs, the Act may not apply, so write your late payment terms into the contract.
Currency
- Say which currency you invoice in. Invoicing in pounds puts the exchange rate risk on the client; invoicing in their currency puts it on you.
- Say who pays bank and transfer charges, so the amount you receive is the amount you invoiced.
- For a large job, consider setting the exchange rate on a stated date, or invoicing in stages.
- If you are VAT registered and UK VAT is due on an invoice in a foreign currency, it must show in sterling the net total at each VAT rate and the VAT at each rate (gov.uk).
VAT on services to overseas clients
HMRC's general rule for services to a business customer is that the supply is made where the customer belongs, so a service to a business customer outside the UK is outside the scope of UK VAT, and you don't charge it. For a customer who isn't in business, the supply is generally made where you belong, so UK VAT may be due (VAT Notice 741A). To treat a customer as a business, HMRC says to obtain commercial evidence that they are in business and belong outside the UK, and to keep it with your records. If they have no VAT number you can accept alternative evidence, such as a certificate from their tax authority or other commercial documents. If the customer can't show business activity, treat the supply as to a consumer. HMRC also notes that you may need to consider the local tax rules of the customer's country, and there are exceptions for some kinds of service, so check the notice or ask an accountant.
Put your client's business name, address and tax number, if they have one, in the contract and on the invoice.
Signing across borders
An electronic signature is valid for ordinary business contracts under UK law (are electronic signatures legal in the UK?). If a document must be registered, filed or used by a public body in another country, or governed by another country's law, check that country's rules. AgreeVia's contract templates are written for UK law, so for work governed by another country's law, take advice on the contract itself.
Questions people ask
Do I charge UK VAT to a client in the US?
For services to a business client outside the UK, the general rule treats the supply as made where the client is, so no UK VAT is charged. Keep evidence of the client's business status and where they are, and check any exceptions for your type of service.
Which law should I choose?
Your own part of the UK is the usual starting point, because it's the one you know and the court is on your doorstep. If the client insists on something else, get advice for a big contract.
Should I ask for payment up front?
For a new client abroad, a deposit is wise: if they don't pay, chasing or suing overseas is slower and costs more than chasing at home.
This guide explains the general position in the UK as we understand it on 25 October 2026. The law differs between England and Wales, Scotland and Northern Ireland, and it changes. If something important turns on it, talk to a solicitor or an accountant.
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