Legal requirements for British companies paying contractors in the Eurozone

[Alta7]

Good morning,

I'm hoping to find sound advice on what are legal requirements:

A contractor located in the Eurozone invoices a British company based in Britain. They state the separate jobs in GBP (as stated on purchase orders) and give the total in GBP and EUR, with the exchange rate on the date of invoice. (Both the contractor and the company are VAT-exempt, if this is of any relevance.)

Is the amount that has to be paid to the contractor's EUR account (via American Express foreign exchange service) the amount stated on their invoice (that is, the EUR amount on the >date of invoice< according to HRMC exchange rate) or is the British company permitted to use the exchange rate used by American Express and valid on the day of payment?

Many thanks in advance.

 

[Williams lester]

That will depend on the terms of the contract between the parties.

 

[Alta7]

Thanks, Williams lester.
What is the appropriate course if this has not been specified in the contract?
I've also been told that HMRC exchange rate is a legal requirement?

 

[Williams lester]

I can't imagine the fluctuation in exchange rates would make much difference either way...unless we are talking multi millions. How much currency difference are you showing, and is it worth the effort of arguing over it?