How to Manage Multi-Currency Supplier Invoices

How InboxBill handles foreign currency

InboxBill's AI detects the currency on every invoice. USD, EUR, CAD, AUD and most major currencies are identified automatically. The extracted invoice shows the original currency and amount, which then syncs to FreeAgent in the original currency.

FreeAgent and multi-currency bills

FreeAgent supports foreign currency bills. When InboxBill syncs a USD invoice, FreeAgent records it in USD and uses the exchange rate at the bill date to convert to GBP for reporting purposes. This is HMRC-compliant — foreign currency must be recorded at the exchange rate on the transaction date.

Common multi-currency scenarios

• SaaS subscriptions (AWS, Google, Stripe fees) — typically USD
• EU suppliers post-Brexit — EUR with no UK VAT, different rules apply
• International contractors — may invoice in their local currency
• Stripe payouts — may involve currency conversion fees

VAT on foreign currency invoices

UK VAT doesn't apply to invoices from overseas suppliers (they invoice ex-VAT for B2B exports). However, you may need to apply reverse charge VAT for EU services. FreeAgent handles this with specific tax codes — InboxBill flags non-GBP invoices for review to ensure correct VAT treatment.