If a UK company invoices a NL company - who pays for the currency conversion?

[Madsvds]

If a UK company (producer) invoices a NL company (client) in EUROS for stock that the NL company bought from them, who is usually responsible for paying the transfer fees?

And is there a formula for what it might be? 

 

[Roel J]

That depends on what you aggreed on between supplier and customer.

 

For International bankpayments, the standard condition is split cost. Each bank will charge their customer for the transaction fees. Only if you change the conditions either all costs will be charged to you or to the counterpart.

So you can say If nothing was agreed and a standard banktranfer was used then each pay there own costs.

 

Standard terms used by banks are

SHA for shared cost

OUR for our cost (paying party pays all fees)

BEN for all cost payed by BENificiary

 

UK is currently still part of SEPA (Single European Payment Area) which means that banktranfers under sepa conditions are based on normal national rates for the transfer when using SHA and is the cheapest options for both parties.
 

 

[Madsvds]

Aw super helpful thank you Roel :)))

[Benm]

There should not be any fee's that are larger than for a normal domestic transaction, but you must make the transfer in EUR. 

 

You can have a EUR account with your UK bank and have the money transferred to that. If you only have a GBP account, but the transaction is made in EUR, you will not pay any transfer fees but will lose some on the currency conversion. This varies a bit between banks, but it could be something like 1 or 2 percent below mid-market rates.