When to send an invoice
Invoice at the point set by the contract, tax rules and any client purchasing process. For one-time work that may be delivery or acceptance; for a milestone project it may be each approved stage; for ongoing work it may be a fixed monthly date. Sending promptly helps, but the legal or contractual payment period does not always begin on the send date. It can depend on receipt, delivery or acceptance.
For a large project, consider a deposit or staged payments agreed before work starts. Set the amount, scope, trigger and due date in writing. If advance payment changes the tax point or requires a tax invoice in your jurisdiction, follow that rule rather than treating the deposit as informal.
How to number invoices sequentially
Use a unique reference for each invoice. Some systems, including EU VAT rules, require a sequential number based on one or more series; other jurisdictions define invoice identifiers differently. A plain running counter is easy to audit, and a year or client prefix can work when each series remains unique and local rules permit it.
Document cancellations and corrections instead of silently deleting or reusing an issued number. A gap is not proof of hidden income, but an unexplained gap makes the records harder to follow. FreeBillGen guests provide their own number. A signed-in workspace can suggest the next number from saved invoices and reject duplicate saved full numbers, but you must reconcile voids and invoices created elsewhere.
What to put on a freelancer invoice
A useful invoice identifies who is billing whom, what was supplied, the amounts and the payment terms. The legal particulars depend on the supplier, customer, transaction and jurisdiction, so treat the list below as a practical baseline rather than a universal form. A free invoice generator lays out common fields; you still add any local requirement.
- The word "Invoice"
- Clearly label the document so it is not mistaken for a quote, estimate or pro forma.
- Invoice identifier and date
- A unique number or reference, using any sequence or series required locally, and the issue date.
- Your details
- Your trade name or legal name, address, and any business or tax registration number that applies.
- Client details
- The client's name (or company name) and address, and their VAT number where the reverse charge applies.
- Description of work
- A line for each service or deliverable, with quantity or hours, the unit rate, and the line total.
- Amounts
- The subtotal, any tax, any discount, and the total amount due in the agreed currency.
- Payment terms and due date
- When payment is due (for example net 14 or net 30) and how to pay, including bank or transfer details.
- A reference, if the client needs one
- A purchase order or project reference that lets the client route the invoice for approval.
Do freelancers have to charge VAT?
Tax treatment depends on more than registration. If you validly remain outside the normal VAT or GST system, do not present part of the price as that tax. If you are registered, apply the treatment for the particular supply: a positive rate, zero rate, exemption or reverse charge. Sales-tax systems can use different registration, sourcing and invoice rules.
For many services supplied by an EU business to a business in another member state, the customer accounts for VAT under reverse charge. Special place-of-supply rules apply to some services, so confirm the customer’s status and the nature of the work before omitting VAT. Use the invoice wording and identifiers required by the applicable rules. Income tax on business profit remains separate from transaction tax.
Setting payment terms
Payment terms state when the money is due. Agree them in the contract or accepted quote and repeat the exact calendar deadline on the invoice. If you use shorthand such as net 14 or net 30, say which event starts the count. Due on receipt signals that you are not offering a credit period, but an actual date is clearer.
| Term | Plain meaning | Possible use |
|---|---|---|
| Due on receipt | No agreed credit period | Small jobs or pre-agreed immediate billing |
| Net 14 | Full amount due 14 days after the stated start date | Short agreed credit |
| Net 30 | Full amount due 30 days after the stated start date | Clients with a 30-day process |
Also state the currency, payment method and reference. Contractual or statutory late-payment rights vary by jurisdiction and transaction type. A written clause helps show what was agreed, but does not make an unlawful fee enforceable.
Following up on late payments and keeping records
When an invoice becomes overdue, first confirm that it reached the correct billing contact and contains any required purchase-order reference. Send a factual reminder with the invoice number, amount and due date. Escalate through the steps allowed by the contract and local law, recording each contact and calculation.
Keep the invoices you issue and receive, the underlying agreement, evidence of delivery, corrections and payment records for the period required by each applicable tax and company law. Retention periods and the event from which they run differ, so use the relevant authority’s current schedule rather than a global rule of thumb.
Frequently asked questions
Do I need to be a registered business to send an invoice?
Forming a company is not always required, but business-registration, licensing, tax and invoice rules vary. A sole proprietor or sole trader may invoice under a personal or registered trade name and still need specific identifiers, filings and income records. Check the rules where the business operates.
How do I number my invoices?
Use a unique reference and follow any local rule on sequential series. A running number such as 2026-001 is easy to audit. Keep canceled or corrected records instead of silently reusing an issued number, and use the correction document required in your jurisdiction.
Do I have to charge VAT as a freelancer?
Registration is one part of the answer. Apply the rule for the place and type of supply, including any exemption, zero rate or reverse charge. Many EU cross-border B2B services use reverse charge, but important exceptions exist. Income tax on profit is separate from VAT.
What payment terms should I set?
Choose terms the client accepts and your cash flow can support. If you use net 14 or net 30, identify the starting event and show the calendar due date. State the currency, payment method and any lawful late-payment clause before the work begins.
What can I do if a client pays late?
Confirm receipt and any genuine dispute, then send a factual reminder and escalate under the contract and local procedure. Interest or recovery costs may arise from an agreed clause or statute for qualifying debts. Check the debtor type, rate, notice and enforcement rules before adding a charge.
How long should I keep my invoices?
Use the current retention rules for each tax, entity and jurisdiction that applies. Keep issued and received invoices, corrections, the agreement, proof of delivery and payment records in a form that remains readable for the required period.