Merchant Account and Foreign Payments

[broadone]

Thanks.

 

[HavocXphere]

since you can't invoice e.g US clients in $USD

eh, why can't you invoice in USD?

You can invoice in whatever you like & the payment will be converted either by your payment processor or by the payer's home bank.

 

[The Flight Guru]

Your platform should allow you to display the currency in the country of origin's currency. Once they checkout your merchant will then process the transaction in your local currency and charge them the converted rate accordingly.

 

[Arthur]

Yes I forgot, if you issue a tax invoice for a zero-rated supply, you are allowed to issue the whole invoice in a foreign currency.

Note there's a technical diffs between Zero-rated and Outside Scope of VAT. Typically sales to foreign entities in a foreign currency are outside scope of VAT. Your tax invoice must reflect the foreign entity's foreign address, ie it must be a jurisdiction outside of scope of SA VAT. Zero-rated technically means that the item (good/service) is VATable but the current rate of VAT is zero. Yes it amounts to the same thing, but it has different legal and accounting implications.

Some SADC-based entities prefer an SA tax invoice as they reclaim SA VAT via their own preferred route.