Payments

FIRC, GST and PayPal Fees: What Changes When You Get Paid by EU Clients

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 31 October 2026
Last modified: 31 October 2026
Fees checked on: 28 October 2026
Reading time: 6 min read

Short answer

PayPal charges 4.40% plus 0.35 EUR per international commercial transaction received in euros.³⁶ EU businesses buying services from outside the EU usually account for VAT themselves under the reverse charge.²⁰ Exports to EU clients are zero-rated under section 16 of the IGST Act.³ Rule 89(2)(c) names FIRCs for GST refunds.⁵ From 1 October 2026, each export needs an EDF.⁹

Applies to	Rules involved	Platforms compared	Last verified
Indian freelancers and businesses invoicing clients in EU member states¹	IGST Act sections 2(6) and 16; CGST rule 89(2)(c); FEMA (Export and Import of Goods and Services) Regulations, 2026¹³⁵⁹	Skydo, Razorpay, Karbon Business, PayPal¹⁴	31 October 2026

Invoice amountCurrencyHow the client pays

900 EUR = ₹93,742 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#	Provider and route	Best for	Fee (+GST)	Markup	You receive	Cost
1	Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹937plus GST, rate not stated	0%	₹92,636 to ₹92,804	1.00 to 1.18%
2	RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,000plus GST, rate not stated	0%	₹92,562 to ₹92,742	1.07 to 1.26%
3	WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)	Local transfers with a published per-payment fee	₹1,710	0%	₹92,032	1.82%
4	SkydoTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹2,113	0%	₹91,629	2.25%
5	PayoneerLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹0no GST stated	1 to 4%	₹89,992 to ₹92,804	1.00 to 4.00%
6	PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹4,161no GST stated	3 to 4%	₹85,997 to ₹86,893	7.31 to 8.26%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

Clients in the European Union pay Indian freelancers, agencies and IT companies mostly in euros, through SEPA transfers, cards or PayPal.²¹ The question "what changes with an EU client?" has three parts: what PayPal and other providers charge on euros, what the client does about VAT, and which Indian documents and GST steps apply. This page answers each with sources.

On the Indian side, very little changes for an EU client: the export rules, GST zero-rating and proof-of-receipt documents are the same as for any foreign client.³⁹ What differs is the payment rail, the client's VAT treatment and the tax treaty with the client's country.²⁰²¹²² Confirm your own setup with a chartered accountant (CA).

How do PayPal and other providers compare for getting paid by EU clients?

PayPal and other providers compare on fee structure for EU clients: PayPal charges 4.40% plus 0.35 EUR before a conversion fee, while PA-CB providers with local EUR details charge a fixed fee or about 1%.²⁴³⁰³³³⁶ The table orders providers by estimated cost on EUR 4,500 from published fees, cheapest first.²⁴³⁰³³³⁶

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Skydo	Local bank transfers from major markets²³	USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above²⁴²⁵	Product page: mid-market rate, 0% markup; terms: retail rate set by Skydo or its partner banks²⁶²⁷	Within 24 hours per product page; T+1 to T+3 business days per terms²⁶²⁷	Free FIRA on every payment²⁶²⁸	PA-CB-I & O, authorised 8 January 2026¹⁴	Skydo fee FAQ²⁴
Razorpay	Local transfers from the US, UK and eurozone²⁹	MoneySaver: 1% plus GST, flat ₹1,000 below ₹1,00,000³⁰	0% markup at the live rate on MoneySaver bank transfers³⁰	T+1 for push bank transfers, including SEPA²⁹	FIRS within 24 hours after settlement²⁹³¹	PA-CB I & O¹⁴	Razorpay docs²⁹
Karbon Business	US bank transfers and marketplace payouts³²	1% transaction fee on its PayPal alternative page³³	0% on its freelancer page; 0.5% to 1.0% on its PayPal comparison page³²³³	24 to 48 hours³²	FIRA for every transaction³²	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB¹⁴³⁴	Karbon pages³²
PayPal	Clients paying by card or PayPal balance³⁵	4.40% plus 0.35 EUR per international commercial transaction³⁶	3.0% or 4.00% above the base rate; the page does not say which applies to INR withdrawals³⁶	Up to 5 business days³⁷	Free weekly digital FIRA from February 2026³⁸	Existing PA-CB that can operate, with in-principle authorisation, as on 16 October 2026¹⁵	PayPal fee page³⁶

The PayPal fees in India page covers every PayPal charge in detail.

Which RBI rule governs money from EU clients?

Money from EU clients is governed by the FEMA (Export and Import of Goods and Services) Regulations, 2026 for declaration and realisation, and by RBI's Payment Aggregator Master Direction when a provider collects the payment.⁹¹³

Rule	Best for	Plain meaning	Source
2026 Regulations, regulations 3 and 4	Every EU invoice	EDF within 30 days from the end of the invoice month, or by the payment date for non-software services⁹	RBI⁹
2026 Regulations, regulation 5 as amended	Every EU invoice	Realise within nine months, or twelve months for rupee invoices¹⁰	RBI¹⁰
PA Master Direction, paragraph 11(d)	Payments through PayPal, Skydo or Razorpay	₹25 lakh cap per transaction¹³	RBI¹³
IGST Act, sections 2(6) and 13(2)	GST treatment	Export of services where the five conditions hold; place of supply at the recipient's location by default¹²	CBIC
EU reverse charge	The EU business client	The client usually pays VAT in its own country and can usually deduct it²⁰	European Union²⁰

The EU reverse charge is the client's obligation; it does not add VAT to your Indian invoice.²⁰

What does each option charge on euros?

Each option charges differently on euros: Skydo charges a fixed fee by band, Razorpay and Karbon charge about 1%, and PayPal charges a percentage plus a fixed fee and then a conversion fee.²⁴³⁰³³³⁶

Option	Best for	Estimated cost on EUR 4,500	What drives the cost	Source
Skydo	Larger EUR invoices by SEPA	0.68%	USD 29 fixed fee plus GST²⁴	Skydo²⁴²⁵
Razorpay	Registered businesses with eurozone clients	1.00 to 1.18%	1% fee plus GST³⁰	Razorpay³⁰
Karbon Business	Exporters incorporated in India	1.00 to 1.18%	1% fee plus GST³³	Karbon³³
PayPal	Small clients paying by card or wallet	7.28 to 8.23%	4.40% plus 0.35 EUR, then 3.0% or 4.00% conversion³⁶	PayPal³⁶

A SWIFT wire to your own bank is priced in the bank's published charges policy under regulation 19.⁹

Which option is cheapest at EUR 1,800, EUR 4,500 and EUR 9,000?

The cheapest option at EUR 1,800, EUR 4,500 and EUR 9,000 changes with invoice size, because fixed fees weigh more on small invoices.²⁴³⁰ The table below works out rupees received at today's rate from published fees.

Platform	Best for	INR on EUR 1,800	INR on EUR 4,500	INR on EUR 9,000	Cost on EUR 4,500
SkydoMost INRTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹1,85,371	₹4,65,484	₹9,34,193	0.69%
Karbon BusinessBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹1,85,271 to ₹1,85,609	₹4,63,178 to ₹4,64,022	₹9,26,356 to ₹9,28,043	1.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,85,271 to ₹1,85,609	₹4,63,178 to ₹4,64,022	₹9,26,356 to ₹9,28,043	1.00 to 1.18%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹1,72,030 to ₹1,73,822	₹4,30,127 to ₹4,34,608	₹8,60,289 to ₹8,69,251	7.28 to 8.23%

Ranked by INR received on EUR 4,500. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, at EUR 1,800 Razorpay's and Karbon's 1% fees come in below Skydo's USD 19 fee, while at EUR 4,500 Skydo's USD 29 fee works out to about 0.68%.²⁴³⁰³³ PayPal's 4.40% plus 0.35 EUR stays above 7% at every size once conversion is added.³⁶

What documents and GST apply to payments from EU clients?

Payments from EU clients need a FIRA or FIRC for each receipt, an EDF with your bank, and an LUT if you are GST registered, and the invoice carries no IGST when the export conditions are met.³⁶⁹

Document	Best for	What it does	Source
FIRA or FIRS	Every EU receipt	Proves the payment; PayPal, Skydo and Razorpay each issue one²⁶³¹³⁸	Provider pages
FIRC	GST refund claims	Bank certificate named in rule 89(2)(c)⁵	CBIC⁵
e-BRC	Exporters with an IEC	Self-certified on DGFT from the bank's IRM¹⁶¹⁷	DGFT¹⁶
EDF	Every service exporter	Declares the export to the AD bank from 1 October 2026⁹	RBI⁹
LUT	GST-registered exporters	Invoice without IGST, in FORM GST RFD-11 each financial year⁶	GST portal⁶

Under rule 96A, IGST with interest falls due if an LUT export is unpaid beyond one year or the FEMA period, whichever is later.⁴ Read GST on export of services and what is a FIRC.

What changes in 2026 for Indian exporters paid by EU clients?

Indian exporters paid by EU clients see new RBI export rules from 1 October 2026, a change to the GST intermediary rule from 30 March 2026, and a new Income-tax Act from 1 April 2026.⁷⁹¹⁸

2026 Regulations: The 2026 Regulations replaced the 2015 Regulations on 1 October 2026, and every service exporter now files an EDF.⁹
SOFTEX: RBI Circular No. 20 supersedes the SOFTEX circulars from 1 October 2026.¹²
Realisation period: The period went to 15 months in November 2025 and is back to nine months from the invoice date.¹⁰¹¹
Intermediary services: Section 13(8)(b) of the IGST Act, which put the place of supply for intermediary services at the supplier's location, was omitted by the Finance Act, 2026 from 30 March 2026.⁷
GST Council: The 57th meeting on 8 October 2026 recommended omitting condition (v) of section 2(6); it is not in force.⁸
PayPal FIRA: PayPal moved to free weekly digital FIRAs in February 2026.³⁸
Income tax: Foreign tax credit for tax year 2026-27 is claimed in Form 44.¹⁹

For the country-by-country view, read receiving payments from Europe to India.

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

Frequently asked questions

How do I get paid from EU clients in India?+

You get paid from EU clients in India by SEPA transfer to local EUR account details from a payment provider, through PayPal or card, or by SWIFT wire to your own bank. SEPA credit transfers and SEPA instant payments are the usual euro rails, and local EUR details let the client pay as it pays a local supplier.²¹²³²⁹

Do I charge VAT to a business client in Germany or France?+

You usually do not charge VAT to an EU business client from India. The EU's Your Europe guidance says a business receiving services for business purposes from a supplier outside the EU should usually pay VAT at its own country's rate under the reverse charge procedure, and can usually deduct it later.²⁰

How much does PayPal charge on a payment from an EU client?+

PayPal India's fee page lists 4.40% plus 0.35 EUR for each international commercial transaction received in euros. Converting the balance adds a fee of 3.0% or 4.00% above the base exchange rate, and the page does not say which applies when you withdraw to an Indian bank in INR.³⁶

Is a PayPal FIRA enough for GST on EU payments?+

A PayPal FIRA records each foreign payment, and PayPal has issued free weekly digital FIRAs since February 2026. For a GST refund on exported services, rule 89(2)(c) of the CGST Rules names bank realisation certificates or FIRCs, so check what your GST officer accepts before you file the claim.⁵³⁸

Is my invoice to an EU client an export of services?+

Your invoice to an EU client is an export of services when all five conditions of section 2(6) of the IGST Act hold, including a recipient and place of supply outside India and payment in convertible foreign exchange. The default place of supply is the recipient location under section 13(2).¹²

Will a German client deduct tax from my invoice?+

The India-Germany DTAA allows tax on fees for technical services at up to 10% of the gross amount in the source country, for managerial, technical or consultancy services. Whether a German client deducts anything depends on its own rules and the service, so agree it before invoicing and keep any certificate.²²

Can my EU client pay me by SEPA instant transfer?+

The European Central Bank says SEPA instant credit transfers reach the payee in about 10 seconds. An EU client can pay you this way only into euro account details inside SEPA, such as those that payment providers give Indian exporters; the provider then converts the euros and pays rupees.²¹²³²⁹

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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