How to write an invoice: a step-by-step example

The ten parts of an invoice in order, a worked example with tax and a deposit, what changes in the US, UK, EU, Australia, Japan and Korea, and a final check.

What an invoice is, and what it has to show

An invoice asks a customer to pay for goods or services they agreed to buy. It is not an offer, which is a quotation, and it is not proof of payment, which is a receipt. A clear invoice lets the customer’s accounts team approve it without writing back: it says who is billing whom, for what, how much, by when and how to pay.

The core is much the same everywhere. Tax rules then add details for businesses registered for VAT or GST, and those differ by country. This guide walks through the core with a worked example, then shows what changes in six countries.

The ten parts of an invoice, in order

Work down the page in this order and nothing gets left out:

  • A title that says “Invoice”, so it cannot be mistaken for a quotation or a receipt.
  • A unique invoice number in your own sequence, such as INV-2026-014, never reused.
  • The issue date, and the date or period of supply when it differs, such as “work done 28 Sep to 2 Oct”.
  • Your details: business or trading name, address, email and, if you are registered, your tax number.
  • The customer’s legal name and billing address, a contact or department, and their purchase order number if they gave one.
  • One line per item: a description the customer can match to the agreement, the quantity or hours, the unit price and the line amount.
  • The subtotal, any discount as its own figure, and the tax rate and tax amount where tax applies.
  • The total due, with a currency code such as USD or EUR when the customer is abroad.
  • The due date written as a calendar date, not only “Net 14”.
  • How to pay: bank details or a payment link, and the reference the customer should quote.

Worked example: a photographer’s invoice

A product photographer bills a small brand for a half-day shoot and edited images. The figures are illustrative, not suggested prices, and the 10% tax rate stands in for whatever rate applies to you.

The invoice is numbered INV-2026-014, issued on 2026-10-05 and due 14 days later, on 2026-10-19. The note under the lines reads: “Shoot on 2026-09-30 as agreed in quotation Q-2026-031. Please quote INV-2026-014 with your payment.” If the brand paid a 300 deposit when it booked, the invoice still shows the 1,111 total, then “Deposit received on 2026-09-20: 300” and “Balance due: 811”, so both sides can trace every figure.

  • Half-day product shoot: 1 × 650 = 650
  • Edited images delivered as JPEG files: 24 × 15 = 360
  • Subtotal before tax: 650 + 360 = 1,010
  • Tax at 10% of the subtotal: 1,010 × 0.10 = 101
  • Total due on the invoice: 1,010 + 101 = 1,111

What changes by country

Once you or your customer are registered for a consumption tax, the tax authority adds content of its own. A short map, with a guide for most:

  • United States: there is no national VAT. Sales tax is set by states and local governments, so whether a line is taxed depends on where you sell; show it as its own line.
  • United Kingdom: a VAT-registered business gives VAT invoices to VAT-registered customers, with its VAT number, the rate and VAT per item and the VAT total in sterling.
  • European Union: the VAT Directive lists what a full invoice holds, including both VAT numbers on a cross-border business sale and the words “Reverse charge” where the customer accounts for the VAT.
  • Australia: a GST-registered seller issues a tax invoice showing its ABN and the GST; from $1,000 it also needs the buyer’s identity or ABN.
  • Japan: a registered seller’s qualified invoice carries its registration number, T followed by 13 digits, and the tax split by rate.
  • South Korea: VAT-registered businesses issue a tax invoice, in most cases electronically; an ordinary invoice is a payment request, not that tax document.

Making it in QuoteBill

Open the free invoice generator or a template close to your trade, sign in, and fill in “From” and “To”, including each “Tax registration number” you need. Type the lines with their quantities and unit prices. A QuoteBill document has one tax rate for the whole invoice, in “Tax rate (%)”; the editor asks for one before printing, and 0 is a valid answer where no tax applies. Lines taxed at different rates go on separate invoices.

Set the “Due date”, put the payment details and the reference in “Terms”, then press “Save to cloud” and “Print / PDF”. Numbers follow your numbering setting, and a number already used by another document in your cloud is refused. QuoteBill does not deduct a deposit by itself, send the invoice or collect the money, and its PDF is a printable invoice, not a registered e-invoice.

Check before you send

Open the PDF, not the editor, and read it as the customer will:

  • The number is new and the issue date is today’s, not the date an old copy was saved.
  • Every line matches the quotation, order or timesheet the customer agreed to.
  • The tax rate and the customer’s tax number are right for this sale, or the tax is 0 with the reason in the notes.
  • The total, the currency and the due date read the same in the PDF as in your covering email.
  • The payment details are current, and any change was confirmed by phone, not by email alone.
  • You kept the exact PDF you sent, with its date, in the customer’s folder.

Questions people ask

Do I need an invoice number if I send only a few invoices a year? Yes. A unique number lets you and the customer refer to one document without confusion, and UK and EU VAT rules ask for a sequential one. Pick a pattern such as INV-2026-001 and never reuse a number.

Can I invoice before the work is finished? You can bill a deposit or a milestone when the agreement provides for it. Name the stage on the invoice and keep the balance for a later one; the deposit guide shows the whole sequence.

What if an invoice I already sent is wrong? Do not quietly edit the sent copy. Issue a credit note that cancels or reduces it, then a new invoice if one is needed, so your records and the customer’s still match.

Is a PDF invoice enough? For many sales, yes. Some countries require a structured e-invoice for certain sales, such as Korea’s electronic tax invoice or the e-invoicing rules being phased in across the EU, and a PDF does not meet those.

Sources

250 Free Invoice, Quote & Receipt Templates

  • Free invoice generator

    Download the invoice as Excel or Word with working formulas, or edit it online with your logo and tax settings and save a PDF. Free with a QuoteBill account.

  • Blank invoice template

    Blank invoice template with one line for your own item or service: add quantity, price and more lines as needed. Fill it in online or download Excel or Word.

  • Photography invoice template

    Invoice template for photographers: photo session, photo editing and image usage license. Fill it in online, download Excel or Word, or print to PDF.