The short answer
- US freelancer: no federal invoice format, but a clean invoice has a sequential number, both parties’ details, itemised lines, a total and a due date written as a date. Put your EIN, not your Social Security number.
- UK contractor, VAT-registered, after a deposit: show the full job with VAT, then subtract the deposit invoice by number and date, and ask only for the balance.
- UK sole trader, not VAT-registered: no VAT line and no VAT number. Show your own name next to any business name, and an address where legal documents can reach you.
- Shop with mixed VAT rates: a VAT rate on every line and a VAT total per rate. In the UK, coffee is zero-rated and wine is standard-rated at 20%.
- Every example below has a real due date and says how to pay, so the client never has to ask.
Names, tax numbers and bank details are placeholders. The full lists of required details are in what must be on an invoice and the step-by-step method in how to write an invoice.
What all four examples share
Whatever the country, each invoice below carries the same core:
- a unique invoice number that follows the previous one, with no gaps and no duplicates;
- the invoice date and the date of supply (when the work was done or the goods delivered);
- your details: name, any trading name, address, contact, and a tax number where it applies;
- your client’s details: name or company name and address;
- itemised lines: description, quantity, unit price, line total;
- the total, with tax shown separately if you charge it;
- payment terms: a due date, how to pay and the reference to quote.
What changes from one example to the next is tax: US sales tax, UK VAT, a deposit already invoiced, or two VAT rates on one sale.
Example 1: a US freelancer’s invoice
Dana Brooks is a freelance copywriter in Portland, Oregon, working as a sole proprietor. Oregon has no general sales tax, so her invoice has no tax line.
| Description | Qty | Unit price | Total |
|---|---|---|---|
| Website copy, 6 pages | 6 | $350.00 | $2,100.00 |
| Blog posts, 800 words each | 4 | $175.00 | $700.00 |
| Extra revision round | 2 h | $75.00 | $150.00 |
Payment by ACH to account ending 0000 (details on request) or by check payable to Dana Brooks. Please quote invoice 2026-047. W-9 on file with your accounts team.
- Her legal name next to her business name, and an EIN instead of her Social Security number.
- The client’s purchase order number, because they issued one.
- A due date written as a date, not just “Net 30”.
Line by line:
- “Dana Brooks Copywriting” and “Dana Brooks”: a sole proprietor has no separate legal name. A business name (a DBA) sits next to her own name; it doesn’t replace it (business name vs legal name).
- EIN 00-0000000: an Employer Identification Number is free from the IRS and keeps her Social Security number off client paperwork.
- PO 7781: when a client issues a purchase order, quoting it lets their accounts team match the invoice to the order.
- Three dates: issued, completed and due. “Net 30” means 30 days after the invoice date; writing Oct 30 removes any doubt (invoice payment terms).
- “W-9 on file”: business clients usually ask for Form W-9 before paying. Because Maple Street Dental will pay her $2,000 or more for services in 2026, it will file a Form 1099-NEC.
Check the math: 6 × $350 = $2,100; 4 × $175 = $700; 2 × $75 = $150. $2,100 + $700 + $150 = $2,950.00.
Example 2: a UK contractor’s final invoice after a deposit
Tom Okafor is a VAT-registered plumbing and heating engineer in Leeds. He replaced a boiler for a homeowner. The accepted quote asked for a 30% deposit, which he invoiced on 12 August (INV-0231: £720.00 net, £144.00 VAT, £864.00 total). This is the final invoice.
| Description | Qty | Unit price | Total |
|---|---|---|---|
| Combination boiler, supplied (make and model) | 1 | £1,650.00 | £1,650.00 |
| Labour, remove old boiler and fit new | 2 days | £280.00 | £560.00 |
| Flue kit, valves and fittings | 1 | £190.00 | £190.00 |
As quote Q-0219 accepted 5 Aug 2026. All items standard-rated at 20%. VAT on this invoice: £336.00 (VAT of £144.00 was charged on deposit invoice INV-0231). No cash discount. Payment by bank transfer within 14 days, quoting INV-0247.
- His VAT registration number.
- The tax point: here the invoice date, because it was issued within 14 days of the work.
- The full job with VAT, so it can be checked against the quote.
- The deposit subtracted with its own invoice number and date.
Line by line:
- “VAT invoice” and the VAT number: once registered, Tom must show his VAT number. A full VAT invoice also shows the tax point, the rate for each item, the unit price, the total excluding VAT and the VAT total in sterling.
- Work finished 30 Sep, tax point 2 Oct: the basic tax point is when the work was finished, but when a VAT invoice is issued within 14 days after that, the invoice date becomes the tax point. HMRC expects a VAT invoice within 30 days of the supply.
- Make and model on the boiler line: a clear description means no argument about what was supplied.
- The whole job, then the deposit: the final invoice repeats the full price, subtracts the deposit with its invoice number and date, and asks only for the balance. The footer says how much VAT this invoice carries, because the deposit invoice already accounted for part of it.
- A homeowner, not a business: the Late Payment of Commercial Debts Act covers business debts only, so there is no statutory interest line here. Tom’s own terms apply.
Check the math: £1,650 + 2 × £280 + £190 = £1,650 + £560 + £190 = £2,400.00 net. VAT at 20%: £480.00. Total: £2,880.00. Less the £864.00 deposit: £2,016.00 due. VAT: £144 on the deposit plus £336 now = £480, and £2,016 − £336 = £1,680 net for this invoice; £720 + £1,680 = £2,400.
More on deposits, including the US version, in deposit invoice.
Example 3: a UK sole trader who isn’t VAT-registered
Leila Haddad is a UX designer in Manchester, trading as Haddad Design. Her turnover is well under the £90,000 VAT threshold and she hasn’t registered voluntarily, so she charges no VAT. Her client is a business, so late-payment law applies.
| Description | Qty | Unit price | Total |
|---|---|---|---|
| UX audit of booking app | 1 | £900.00 | £900.00 |
| Clickable prototype | 3 days | £400.00 | £1,200.00 |
| Stakeholder workshop, half day | 1 | £300.00 | £300.00 |
Not registered for VAT: no VAT charged. Payment by bank transfer to sort code 00-00-00, account 00000000, quoting HD-2026-018. Late payment: statutory interest at 8% above the Bank of England base rate and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
- Her own name next to her trading name, plus an address where legal documents can reach her.
- No VAT line and no VAT number: she isn’t registered.
- Late-payment terms stated up front, for a business client.
Line by line:
- “Leila Haddad, trading as Haddad Design”: GOV.UK says sole traders must show their own name and any business name they use, plus an address where legal documents can be delivered.
- No VAT number, no VAT line: only VAT-registered businesses may charge VAT. Writing “VAT 0%” would suggest she is registered; saying she isn’t is clearer.
- The client’s company number: not required on her invoice, but it identifies the exact company, useful for a client in a group.
- Late-payment terms: between businesses, she can claim statutory interest at 8% above the base rate plus fixed compensation. For a debt of £1,000 to £9,999.99, that compensation is £70. Stating it on the invoice sets expectations; the right exists either way. See how to chase an unpaid invoice.
Check the math: £900 + 3 × £400 + £300 = £900 + £1,200 + £300 = £2,400.00.
Example 4: a shop invoice with two VAT rates
The Corner Pantry Ltd, a VAT-registered deli in Bristol, sells twenty gift boxes to a law firm. Each box holds a bag of coffee (zero-rated, like most food in the UK) and a bottle of wine (standard-rated at 20%, like all alcoholic drinks). The total is over £250, so a full VAT invoice is needed.
| Description | Qty | Unit price | Total |
|---|---|---|---|
| Ground coffee, 250 g (VAT 0%) | 20 | £8.50 | £170.00 |
| Red wine, 75 cl (VAT 20%) | 20 | £12.00 | £240.00 |
| Gift box (VAT 20%) | 20 | £3.50 | £70.00 |
No cash discount offered. Payment by bank transfer within 30 days, quoting CP-2026-0412.
- The full registered company name, company number and place of registration.
- A VAT rate on every line.
- A net amount and VAT total for each rate, in sterling.
Line by line:
- The company’s details: a limited company shows its full registered name. Company number, place of registration and registered office are required on business letters, order forms and websites, and many companies print them on invoices too.
- One rate per line: coffee is zero-rated; wine and the gift box are standard-rated. Each line says which rate applies.
- A total per rate: the net amount and VAT for each rate, then the grand total. This is what the customer’s accountant needs to reclaim the right amount of VAT.
- Tax point: the goods were delivered on the day of issue, so one date serves as both.
Check the math: coffee 20 × £8.50 = £170.00; wine 20 × £12.00 = £240.00; boxes 20 × £3.50 = £70.00. Net: £480.00. VAT at 0%: £0.00. VAT at 20%: (£240 + £70) × 20% = £310 × 20% = £62.00. Total: £480 + £62 = £542.00.
For a sale of £250 or less to a walk-in customer, a UK retailer can give a simplified VAT invoice instead. Our VAT calculator helps when net and gross prices get mixed up.
Mistakes these examples avoid
Compare them with what circulates online and five slips come up again and again:
- “VAT 0%” from someone who isn’t registered. A zero rate implies registration; say you aren’t registered instead.
- “Net 30” with no invoice date, or no due date at all.
- A deposit subtracted with no reference to its invoice, so the client can’t match the two.
- A single VAT total on a mixed-rate sale, which leaves the customer unable to check it.
- A sent invoice edited and re-sent under the same number. Cancel it with a credit note and issue a new one with the next number (invoice numbering).
Make your own from these examples
For a one-off, our free invoice generator uses the same fields, adds up the totals and prints to PDF. For blank templates to paste into Word or Google Sheets, see free invoice template, and for the country-by-country rules for sole traders, invoicing as a sole trader or self-employed.
If you invoice every week, Binome360 drafts the invoice from one sentence, typed or spoken: “Final invoice for Mrs Patel, boiler £1,650, two days labour at £280, parts £190, VAT 20%, less deposit INV-0231.” Your fixed details (name, trading name, VAT number, payment terms) are set once and printed in the footer; numbering follows on automatically; you check and confirm before anything is saved. The client gets a link to read and download the PDF, and a late invoice is flagged so you can send a polite reminder. It doesn’t take card payments and isn’t accounting software. More on the invoice app for freelancers page, and the whole admin picture in the freelancer’s admin guide.
Frequently asked questions
What should a simple invoice include?
A unique number, the invoice date and supply date, your name and contact details, your client’s name and address, a description of each item with quantity and price, the total (with tax shown separately if you charge it), a due date and how to pay. Example 1 has all of them.
How do I show a deposit on a final invoice?
Show the full price and any VAT, then subtract the deposit with its invoice number and date, and ask for the balance. Example 2 shows the layout and the VAT split.
Should I write “VAT 0%” if I’m not VAT-registered?
No. Say you aren’t registered for VAT, and leave out the VAT line and VAT number. Only registered businesses charge VAT, including at the zero rate.
Can one invoice have two VAT rates?
Yes. Put the rate on each line, then show the net amount and VAT for each rate before the grand total, as in example 4.
In short
Four situations, one core: a number in sequence, dates, both parties, itemised lines, correct totals and payment terms in plain words. What changes is tax: no sales tax, VAT with a deposit, no VAT at all, or two VAT rates on one sale. First action: put your last invoice next to the example that matches your situation and check it detail by detail.
Sources
- GOV.UK, “Invoicing and taking payment from customers: invoices – what they must include”: gov.uk.
- HM Revenue & Customs, VAT Notice 700/21, “Keeping VAT records” (full, simplified and modified VAT invoices, £250 limit, 30-day rule): gov.uk.
- HM Revenue & Customs, VAT Time of Supply manual, VATTOS5235, “Actual tax points: VAT invoices: the 14 day rule” (VAT Act 1994, section 6(5)): gov.uk.
- HM Revenue & Customs, VAT Notice 701/14, “Food products and VAT” (coffee zero-rated, alcoholic drinks standard-rated): gov.uk.
- GOV.UK, “VAT registration: when to register” (£90,000 threshold): gov.uk/vat-registration/when-to-register.
- GOV.UK, “Late commercial payments: charging interest and debt recovery”: gov.uk/late-commercial-payments-interest-debt-recovery.
- IRS, “Employer ID numbers”: irs.gov; Instructions for Forms 1099-MISC and 1099-NEC ($2,000 threshold from 2026): irs.gov/instructions/i1099mec.
- Oregon Department of Revenue (Oregon has no statewide sales tax): oregon.gov/dor.
- Binome360 calculations for the four examples, September 2026.
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