Invoice and W-8BEN for a foreign company: how they work
On the first payment from an international remote job, two terms can scare anyone who has never been paid from abroad: the so-called “invoice” and the “W-8BEN” form. It looks like complex bureaucracy, but it’s simpler than it seems. Understanding the basics prevents payment delays and the feeling of being lost. Important: this guide is informational and does not replace an accountant.
By Carlos Jacon · Founder of CareersForge · Senior Engineering Manager
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What is an invoice and why does the foreign company ask for it?
An invoice is the bill you, as a contractor, issue to charge for the service provided. Since you are not an employee of the company, you are the one who submits the billing document each cycle (usually monthly).
It is not the same as the Brazilian nota fiscal (that depends on your PJ status and your municipality). The invoice is an international-style billing document, in English, that the company uses to pay you.
Read next
- Generate your invoice as a PDF
Fill in the fields in the international format and download as PDF, free and without registration.
What is usually on a contractor invoice?
A simple invoice has few fields. The important thing is that it is clear and matches what was agreed in the contract.
Typical invoice fields
- Your details (name/company, address, contact) and the company’s details.
- Invoice number and issue date.
- Description of the service and period (e.g., “Software development, June 2026”).
- Amount, currency, and total due.
- Payment terms (e.g., Net 15) and payment details.
What is the W-8BEN and why do they ask you for it?
The W-8BEN is a U.S. tax form (IRS) in which you declare that you are NOT a U.S. tax resident. U.S. companies commonly ask for it before the first payment to a foreigner. Pay attention to the correct form: if you are paid as an individual, it’s the W-8BEN; if you are paid through your company (PJ, such as a corporation or LTDA), the correct form is the W-8BEN-E, which has more fields. The IRS instructions make this division clear: W-8BEN for individuals, W-8BEN-E for entities.
In practice, it serves for the company to document your nonresident status and apply the correct withholding rules. An important point: Brazil and the U.S. do not have a double taxation treaty in force, so don’t count on a treaty tax reduction. When the service is performed outside the U.S. by a nonresident, that income is usually treated as foreign-source by the U.S. tax authority and therefore generally is not subject to U.S. withholding, regardless of a treaty. You fill it in with your data and country of tax residence (Brazil). It is a declaration form, not a tax you pay there. Confirm your situation with an accountant.
How the money arrives in Brazil (and what applies)
Foreign payment arrives via platforms (Wise, Deel, Payoneer), a global account, or a bank transfer. Exchange costs (spread), IOF when applicable, and any fees apply, which reduce the amount that reaches your account. Note: revenue entry exchange for exported services may have IOF with a zero rate in certain cases, according to current legislation. Therefore, confirm with your accountant what actually applies in your case.
The Brazilian tax side (as PJ you handle your regime; as an individual there are different rules) depends on your situation. This is where an accountant matters: they organize the correct tax collection and avoid future problems.
First-payment checklist
Before the first receipt, confirm the basics so nothing blocks the process.
- Do you know how to issue the invoice in the agreed format and frequency?
- Did you fill out the W-8BEN (if requested) with your data and country of tax residence?
- Have you chosen the receipt method (Wise, Deel, global account) and understood the fees?
- Are the currency, amount, and payment date clear?
- Have you spoken with an accountant about the tax collection for your case?
Frequently asked questions
Is an invoice the same as a nota fiscal?
No. An invoice is the international billing document you issue to the foreign company. The Brazilian nota fiscal depends on your PJ status and your municipality and follows its own rules. Both can coexist; an accountant will advise your case.
Is the W-8BEN a tax I pay?
No. The W-8BEN is a declaration form to the U.S. tax authority in which you state you are not a U.S. tax resident. It allows the company to document your status and apply correct withholding rules. You do not pay anything by filling it out. Note: individuals use the W-8BEN; if you are paid through your PJ, the correct form is the W-8BEN-E.
What taxes do I pay when receiving dollars from abroad?
It depends on your classification (PJ or individual), the tax regime, and the municipality, so the right answer comes from your accountant. Besides taxes, remember that exchange spread, IOF, and fees reduce the amount that arrives. This guide is informational and does not replace tax advice.