Automatic Currency Conversion in VATIFY

What is this functionality?

VATIFY automatically converts foreign currency amounts into the VAT reporting currency applicable in each country and return. This ensures that all transactions are reported consistently, in line with local tax authority requirements.

When is the conversion applied?

Currency conversion happens automatically when:

• An invoice is received via the API, or
• An invoice is imported through one of our connectors (SAP, Stripe, or Amazon).

Conversion is triggered only when the invoice currency is different from the reporting currency of the VAT return.

Which exchange rates are used?

VATIFY ensures conversion accuracy by applying official daily FX rates:

• We use the daily exchange rates published by the Central Bank of the reporting country.
• If the relevant Central Bank does not provide FX rates, VATIFY automatically calculates an average exchange rate across the most widely used banks, and applies that average.

Central Bank Sources

A full list of the Central Banks used by VATIFY for exchange rates can be downloaded in this article. 

Key Benefits:

• Fully automated currency conversion.
• Always aligned with official or market-average exchange rates.
• Works seamlessly across API, connectors, and Excel uploads.