Invoicing in the United States
The USA has no national VAT or GST. Instead, most states – and many cities and counties – charge sales tax on goods and some services. Five states (Alaska, Delaware, Montana, New Hampshire and Oregon) have no statewide sales tax, although some Alaskan cities do. Whether you must collect it depends on where your customer is, what you sell and whether you have “nexus” in that state.
BillDoodle sets up a US invoice for you: amounts in US dollars, dates as MM/DD/YYYY, a Letter-size PDF and a sales-tax line you can set to your rate or remove.
What to put on a US invoice
- Your business name, address and contact details
- Your customer’s name and billing address
- A unique invoice number and the invoice date
- Payment terms and a due date, such as Net 30
- Each product or service with quantity, rate and amount
- Sales tax as a separate line, if you collect it
- The total due and how to pay you
Showing your EIN is optional. Business clients who pay you as a contractor may ask for a Form W-9 so they can report what they paid.
Sales tax on your invoice
Click Taxes and enter the combined state and local rate for the sale, or choose “No sales tax” for services that aren’t taxable in your state. You can tick or untick the tax on each line, so taxable and non-taxable items can share one invoice.
Frequently asked questions
Do I have to charge sales tax on services?
It depends on the state. Many states don’t tax most services, while others tax specific services. Check your state’s department of revenue for what applies to you.
Can I invoice without a business license or EIN?
Yes. Sole proprietors can invoice under their own name, and an EIN isn’t required on an invoice. Local rules on business licences vary.
What payment terms are common in the US?
Net 30 is the most common, with Net 15 and due on receipt also widely used. Put your terms on every invoice.
Is it really free?
Yes. You can create and download as many documents as you like without paying and without creating an account.
Where is my data stored?
Everything you type stays in your own browser. Drafts and your history are saved locally on this device, so nothing is uploaded to our servers.