EDF for VFX Studios: Export Declaration Guide

A VFX studio in India that bills foreign productions files a monthly Export Declaration Form with the AD bank where those payments land. Every invoice raised to an overseas client in a month goes on one EDF as its own Part 2B row, and the form is due within 30 days from the end of that month. For studios, the real work is keeping milestone and shot-based billing tidy enough that each invoice, and later each payment, matches cleanly.

Key takeaways

• VFX, compositing, animation and post-production work delivered to clients abroad is a service export. Type of export is normally "Services" and mode of delivery "Internet" when you deliver files online.
• One EDF per month can carry invoices to several productions and countries.
• VFX billing is lumpy: bids, milestones, change orders and final delivery. Each invoice, whatever its trigger, is one row on the EDF of its invoice month.
• SAC and purpose codes for audio-visual and post-production work should be confirmed with your CA and bank. Do not copy another studio's codes blindly.
• Productions often pay late. Watch the 9-month realisation window on every invoice.

Why VFX billing makes the EDF harder than it looks

A design agency might send one invoice per client per month. A VFX vendor working on a feature or episodic series may send:

• a deposit invoice on award of the work;
• milestone invoices as shot batches are approved;
• change-order invoices when the client adds shots or revisions;
• a final invoice on delivery of finals.

Each of these lands on the EDF for the month it is dated. A single show can therefore appear in four or five different monthly EDFs across a production cycle. That is fine under the regulations, but only if your invoice register links every invoice to the right show, purchase order and contract.

Mapping studio invoices to Part 2B

Using consistent descriptions and the remarks column means your bank, and later your auditor, can follow the trail without asking for explanations. Keep any show code names consistent with what your client uses on its payment advice; that makes EDPMS matching easier.

Codes: tread carefully

Post-production, animation and visual effects can fall under SAC headings that are different from IT services, and the right code depends on what you actually do. A studio that also writes pipeline software for a client might need two different codes for two different invoices. Use the SAC code finder to shortlist, then confirm with your CA.

Purpose codes on inward remittances work the same way. Your bank assigns a code to each payment, and there are specific codes for different kinds of services. Ask the bank which one it will use for your VFX receipts before the first payment, and check every FIRA. A wrong code is a nuisance later when you are matching receipts to invoices.

Worked example: one show across three EDFs

Kaveri Pixel Works Pvt Ltd, Hyderabad, wins 140 shots on a feature for Northlight Pictures Inc, a Canadian production company, for CAD 210,000 in total (roughly ₹1.3 crore). It also does a small cleanup job for Thornbury Post Ltd in the UK.

(Change orders lift the show total above the original award.)

Three things to notice:

• The November EDF carries two clients in two currencies, which is allowed.
• Each Northlight invoice is above ₹10 lakh, so closure in EDPMS needs the invoice, payment evidence and matching instructions rather than a simple declaration.
• If Northlight's final payment is held until after the film's release, the 9-month realisation window on the October deposit invoice still runs from 20 October 2026. Kaveri tracks each invoice separately.

Payment timing and realisation

Production finance can be unpredictable. Payments may wait for a completion bond draw, a distributor milestone or simply the client's own cash flow. Under the 2026 regulations, the full value of each invoice must be realised within 9 months of its date (12 months for rupee invoices), and the AD bank can extend on a reasoned request.

Practical habits for studios:

• Bill deposits and milestones on time; delayed invoicing just shifts problems later.
• Review an ageing report monthly, flagging anything past six months.
• If a client confirms late payment, write to the bank for an extension before the deadline. The realisation extension request template is a good start.
• Get FIRAs promptly and file them against the invoice, not just the show.

GST and the LUT

Post-production for a client abroad can qualify as export of services, which is zero-rated under Section 16 of the IGST Act, provided the five Section 2(6) conditions are met. Most studios export under an LUT and carry the wording "Supply meant for export under LUT without payment of IGST" on export invoices.

Watch the place-of-supply question if any work is performed on physical media or goods supplied by the client, or if a foreign client's Indian affiliate is involved. These edge cases can change the GST answer, so ask your CA. The EDF itself does not change GST or income-tax obligations. This is general information, not legal or tax advice.

Frequently asked questions

Is VFX work for a foreign studio an export of services for the EDF?

Generally yes, where an Indian studio provides VFX or post-production services to a client abroad and is paid in foreign exchange. Declare those invoices on the monthly EDF with your AD bank. If you are an SEZ unit, file with the Development Commissioner instead.

What mode of delivery should a VFX studio choose?

If you deliver shots and files online, "Internet" is usually right in field 1.4. If you ship physical drives, discuss with your bank whether "Post/Courier" or another option fits better.

Do change orders need a separate row on the EDF?

Each invoice is one row. If a change order is billed on its own invoice, it gets its own row; if it is folded into a milestone invoice, it is part of that row. Use the remarks column to show the link.

What if a production company pays one lump sum against several invoices?

Give your bank matching instructions listing which invoices the payment covers. Keep the client's remittance advice, because it helps the bank close each EDPMS entry correctly.

Can a studio file the EDF on or before payment instead of monthly?

For services other than software, the EDF may be submitted on or before the date payment is received. Studios with several productions usually find the monthly bundle easier.

Bottom line

For a VFX studio, a clean invoice register that ties every milestone to its show and contract makes the monthly EDF a quick job. Build your form with the free EDF form generator and keep the EDF due date calculator handy for staggered milestones.