Frequently Asked Questions

We fetch from multiple providers and cache for up to 10 minutes. Rates are updated automatically when you convert.

We use live/public reference rates. Your bank or payment app may use a different rate and add fees. Treat results as indicative.

In India, currency conversion services are subject to 18% GST. This applies to fees charged by banks, money transfer services, and digital payment platforms for converting foreign currency to INR. The GST is calculated on the service fee, not the conversion amount itself. For example, if a service charges ₹100 for conversion, you'll pay an additional ₹18 as GST. Businesses can claim input tax credit on this GST if used for business purposes and proper invoices are maintained.

In the UK, most currency exchange services are exempt from VAT under Schedule 9 of the VAT Act. However, fees and charges related to currency conversion may be subject to 20% VAT. For example, if you pay a £10 conversion fee, VAT of £2 may apply. Export services (providing services to non-UK clients) are typically zero-rated for VAT, meaning UK freelancers don't charge VAT to international clients but can still claim VAT on business expenses.

GST on international money transfers in India applies to the service fee, not the transfer amount. You cannot avoid GST on the fees charged by banks or money transfer services. However, you can minimize the total cost by choosing services with lower fees (thus lower GST), using services that charge fees in foreign currency (may have different tax treatment), or timing transfers to take advantage of better exchange rates. Export of services may qualify for zero-rated GST under specific conditions.

Live market rates (also called mid-market or interbank rates) are the real exchange rates between currencies used by banks when trading with each other. Bank rates for customers typically include a 1-4% markup above the mid-market rate. For example, if the live USD-INR rate is 83.00, your bank might offer 81.50 for USD you're selling. This difference is how banks profit from currency conversion. Our tool shows both live market rates and estimated bank rates so you can see the true cost of conversion.

Our exchange rates are sourced from multiple reputable financial data providers and updated every few minutes during market hours. We aggregate rates from various sources to provide the most accurate mid-market rates available. However, the actual rate you receive from your bank or payment processor will typically be 1-4% less favorable due to their markup. Our tool shows both the mid-market rate and estimated rates from various providers to give you realistic expectations of what you'll actually receive.

Yes, PayPal charges VAT/GST on their service fees in most countries. In the UK, PayPal adds 20% VAT to international transaction fees. In India, 18% GST applies to PayPal's fees. For example, if PayPal charges a 5% international fee on ₹10,000 (₹500), you'll pay an additional ₹90 as GST (18% of ₹500). The currency conversion markup itself isn't subject to VAT/GST, but all service fees are. Our PayPal calculator includes these taxes to show your true cost.

Yes, businesses registered under GST in India can claim input tax credit on GST paid for currency conversion services, provided: the service is used for business purposes, proper GST invoice is obtained from the service provider, the business is not engaged in exempt supplies, and the credit is claimed within the prescribed time limit. Keep detailed records of all forex transactions and ensure your service provider is GST-registered and provides compliant invoices.

Freelancers can save significantly on currency conversion through several strategies: 1) Use multi-currency accounts to hold funds in USD/EUR and convert only when needed, 2) Compare services - avoid traditional banks which charge 3-4%, use services like Wise (0.5-1%), 3) Time conversions strategically when rates are favorable, 4) Consider receiving payments in your local currency to shift conversion costs to clients, 5) Factor all conversion costs (including VAT/GST) into your pricing, 6) Use our converter to compare real costs across different payment methods.

The cheapest international money transfer methods are: 1) Online money transfer services like Wise, Remitly, or XE Money (typically 0.5-2% total cost), 2) Multi-currency accounts that allow sending in the recipient's currency, 3) Cryptocurrency (for tech-savvy users, though volatility adds risk), 4) Bank transfers for large amounts (costs become proportionally smaller). Avoid traditional banks for small transfers (3-5% total cost) and services like Western Union for regular transfers. Always compare the total cost including exchange rate markup, fees, and VAT/GST using our converter.

Google shows the mid-market rate (the real rate banks use when trading with each other), while your bank shows customer rates with a markup. For example, if Google shows 83.00 USD-INR, your bank might offer 81.50 when you sell USD (2.4% difference). This spread covers the bank's profit, operational costs, and risk management. Different banks have different markups (typically 1-4%). Google's rate is for reference only - no bank will give you exactly that rate. Our tool shows both mid-market and realistic bank rates so you know what to expect.