What is an invoice?
An invoice is a document a seller sends to a buyer after a sale, listing what was supplied and asking to be paid. It is also the business's record of the sale for its accounts and taxes.
What goes on an invoice
- The word Invoice and a unique invoice number
- The invoice date and the payment due date
- Seller and buyer names and addresses, and tax numbers where needed
- Each item or service, quantity, price and amount
- Tax, discounts and the total due
- How to pay: bank details, a payment link or UPI ID
How to make an invoice, step by step
- Give it the next number in your series, for example INV-0042.
- Add your details and the customer's.
- List what you supplied, with quantities and prices.
- Add tax if you are registered, and any discount.
- Set a due date, often 7, 14 or 30 days.
- Send it as a PDF and keep a copy.
The maker on this page does all of this and saves a PDF.
Invoice vs receipt vs quote
- A quote comes before the sale: the price on offer.
- An invoice comes after the sale: please pay this amount.
- A receipt comes after payment: this amount was paid.
Questions people ask
Is an invoice a bill?
In everyday use, yes: both ask for payment. Some tax systems give the words separate legal meanings, for example the bill of supply under Indian GST.
Do I need to be a registered company to send an invoice?
No. Freelancers and sole traders send invoices too. You only add tax if you are registered for GST or VAT.
How long should I keep invoices?
Usually several years. India expects GST records for at least 72 months after the annual return due date, the UK six years and the UAE five years.