International Invoicing: Manage Multiple Currencies Without the Hassle
In Switzerland, one in three SMEs works with clients abroad. Whether you invoice a French client in euros, an American client in dollars or a local client in Swiss francs, multi-currency management is essential to remain competitive, simplify your transactions and maintain compliant accounting.
Why Invoice in Your Client's Currency
Advantages for Your Client
- Transparency: the client sees the exact price in their currency, with no conversion surprise
- Simplicity: payment from their own bank, with no exchange fees on the client's side
- Trust: an invoice in the local currency looks more professional than an invoice in CHF with a "to be converted" note
Advantages for You
- Competitiveness: you are compared directly to your client's local competitors, without the exchange barrier
- Collection rate: clients pay faster when it is simple (no conversion to manage on their end)
- Professional image: an invoice in EUR for a French client shows that you master international business
When to Invoice in CHF vs Foreign Currency
| Situation | Recommended Currency |
|---|---|
| Swiss client | CHF (always) |
| EU client, amount < EUR 1,000 | CHF possible (low risk) |
| EU client, amount > EUR 1,000 | EUR (better client experience) |
| EU client, recurring contract | EUR (avoids fluctuations) |
| US/UK client | USD or GBP |
| Long-term contract > 6 months | Client's currency + exchange clause |
Most Used Currencies in Switzerland
| Currency | Usage | Share of Swiss Foreign Trade |
|---|---|---|
| CHF | Swiss clients | ~60% |
| EUR | EU clients (France, Germany, Italy) | ~30% |
| USD | US clients, international contracts | ~7% |
| GBP | UK clients | ~2% |
| Other | Asia, Middle East, etc. | ~1% |
ToBill supports 30+ international currencies with automatic conversion.
How to Invoice in Multi-Currency with ToBill
1. Configure Your Bank Accounts
For each currency, enter the corresponding IBAN in ToBill:
- CHF IBAN: your main account in Swiss francs
- EUR IBAN: euro account (UBS, PostFinance, Wise, Revolut Business)
- USD IBAN: dollar account (if needed)
ToBill automatically selects the correct IBAN based on the invoice currency and generates the appropriate QR-invoice.
2. Define Your Prices by Currency
Two possible approaches:
- Fixed prices per currency: Item A = CHF 100 / EUR 90 / USD 110 (recommended for standardized services)
- Automatic conversion: define the price in CHF, ToBill converts at the daily rate (recommended for one-off quotes)
3. Create a Multi-Currency Invoice
- Select the client and their preferred currency
- Add the items/services
- ToBill automatically calculates the amounts in the chosen currency
- The PDF invoice includes the QR code with the correct IBAN
- Send by email directly from ToBill
4. Accounting Conversion Tracking
For your tax declaration, all amounts must be converted to CHF:
- ToBill records the exchange rate on the invoicing date
- Or the rate on the collection date (depending on your accounting method)
- Exchange differences are calculated and recorded automatically
Exchange Rate Management
Rate Source
ToBill uses the official exchange rates from the Swiss National Bank (SNB), updated daily. These are the same rates used by the tax administration.
Accounting Methods
Two methods are accepted in Switzerland:
Method 1: Rate on invoicing date (recommended)
- The CHF amount is fixed at the time of invoice issuance
- Simple and predictable
- Accepted by all tax administrations
Method 2: Rate on collection date
- The CHF amount is recalculated at the time of payment
- More accurate but more complex
- Generates larger exchange differences
Important: choose one method and apply it consistently throughout the fiscal year. You cannot alternate between the two methods.
Exchange Differences
The exchange difference is the gap between the CHF amount at invoicing and the CHF amount actually collected.
Example:
- Invoice: EUR 1,000 at a rate of 0.95 CHF/EUR = CHF 950
- Collection 30 days later at a rate of 0.97 CHF/EUR = CHF 970
- Exchange gain: +CHF 20 (taxable)
Conversely, a rate decrease generates an exchange loss (tax-deductible).
ToBill automatically records these differences in your accounting.
Multi-Currency Bank Accounts
Recommendation: Open Currency Accounts
If you regularly invoice in foreign currencies, opening dedicated accounts offers several advantages:
- No forced conversion: payments arrive in the correct currency
- Reduced fees: no exchange commission on each transaction
- Local IBAN: facilitates payment for your foreign clients
Comparison of Banking Solutions
| Bank | EUR Account | USD Account | Monthly Fees | Exchange Fees |
|---|---|---|---|---|
| UBS | Yes | Yes | CHF 5-10 | 0.5-1% |
| PostFinance | Yes | Yes | CHF 5 | 0.7% |
| Wise Business | Yes | Yes + 40 currencies | CHF 0 | 0.3-0.6% |
| Revolut Business | Yes | Yes + 25 currencies | CHF 0-25 | 0-0.5% |
Tip: for SMEs that primarily invoice in EUR, Wise or Revolut Business offer the best exchange rates with minimal fees.
VAT on International Invoices
Clients in Switzerland
Swiss VAT applies as normal (8.1%, 3.8% or 2.6% depending on the service). The invoicing currency does not affect the VAT regime.
B2B Clients in the EU
- No Swiss VAT: the service is taxable at the recipient's location
- Mandatory mention: "VAT not applicable -- service provided to a foreign recipient (art. 8 par. 1 LTVA)"
- Client's VAT number: must be verified and mentioned on the invoice
B2C Clients in the EU
Specific rules depending on the type of service. Digital services may be subject to VAT in the consumer's country.
Clients Outside the EU
- No Swiss VAT: the service is considered an export
- Mention: "VAT not applicable -- export of services"
ToBill automates the detection of the applicable VAT regime based on the client's country and automatically adds the correct legal mentions.
Exchange Risk and Hedging Strategies
Strategy 1: Invoice in CHF
- Risk: zero for you (transferred to the client)
- Disadvantage: less competitive, client bears the risk
Strategy 2: Adjustment Clause
Include in your terms: "Price in EUR at the indicative rate of 0.95 CHF/EUR. In case of a variation exceeding 3% between the quote date and the payment date, the price will be adjusted accordingly."
Strategy 3: Hedging (Exchange Coverage)
For large amounts or long-term contracts:
- Forward contract: fix the exchange rate in advance with your bank
- Currency option: buy the right to convert at a guaranteed rate
- Cost: 0.5-1% of the amount (bank commission)
Strategy 4: Natural Hedging
If you also have expenses in foreign currencies (subcontractors, purchases), they naturally offset your revenue in the same currency.
Reporting and Analysis
Consolidated Dashboard
ToBill displays all your revenue converted to CHF:
- Total turnover across all currencies
- Breakdown by currency (chart)
- Exchange rate evolution applied
- Impact of exchange differences on your result
Multi-Currency Accounting Export
The export for your fiduciary includes:
- Amounts in original currency (as invoiced)
- Amounts converted to CHF (for accounting)
- Exchange rates applied (date and source)
- Realized exchange differences
- Compatible format CSV, Excel, API
Frequently Asked Questions
Do I need a EUR bank account to invoice in EUR?
No, it is recommended but not mandatory. You can invoice in EUR with your CHF IBAN. The client will pay in EUR and their bank will perform the conversion. However, exchange fees will be higher and the client will have to pay the conversion fees.
How do I handle a client who pays in CHF when the invoice is in EUR?
ToBill detects the amount received and automatically calculates the exchange difference. If the client converted at their bank's rate, there may be a small difference from the expected amount. You can set a tolerance of 1-2% for exchange rounding.
Are exchange differences taxable?
Yes. Exchange gains are taxable income and exchange losses are deductible expenses. ToBill automatically records them in your accounting.