What to Include on an Invoice: Checklist and Example
A correct invoice has a unique number, the invoice date and supply date, your details and the customer’s, a clear description of each item with quantity and price, any tax, the total due, and when and how to pay. Many countries add rules for tax (VAT, GST) invoices.
The checklist
| Item | Why it matters |
|---|---|
| Unique, sequential invoice number | Required by tax authorities; avoids duplicate payments |
| Invoice date and date of supply | Sets the tax period and the due date |
| Your name or business name, address, contact | Legal identification; sole traders must show their own name too |
| Customer name and address | Who owes the money |
| Description, quantity and price of each item | What is being charged; prevents disputes |
| Tax rate and amount per rate (if registered) | Lets the customer reclaim tax |
| Total amount due | The figure to pay |
| Payment terms and due date | For example “14 days”, “due on receipt” |
| How to pay | Bank details, payment link or accepted methods |
Rules in the UK (example)
GOV.UK lists: a unique identification number, your company name, address and contact information, the customer’s name and address, a clear description of what you are charging for, the supply date, the invoice date, the amount(s), VAT if applicable, and the total. Sole traders must show their name and any business name; limited companies must use their name exactly as on the certificate of incorporation. VAT-registered businesses selling to other VAT-registered businesses must issue VAT invoices with extra details.
Worked example: discount before tax
10 hours of design at $50 with 10% tax, plus a $100 hosting fee without tax, 10% discount and $5 shipping:
- Subtotal: $500 + $100 = $600.00
- Discount 10%: −$60.00, spread over the lines in proportion (design −$50, hosting −$10)
- Tax 10% on the discounted design line: 10% × $450 = $45.00
- Total: $600 − $60 + $45 + $5 = $590.00
Charging tax on the discounted price, as here, is what most tax systems expect. The Invoice Generator does this automatically and rounds each line to the cent so the printed lines add up to the printed total.
Quote, proforma, invoice, receipt
- Quote/estimate: a price offer before work starts; not a request for payment.
- Proforma invoice: a preliminary bill, often for pre-payment or customs; not a tax invoice.
- Invoice: the request for payment after supply.
- Receipt: confirmation that payment was received.