Invoice
Invoice example for the US, from an Oregon business
The US has no federal sales tax and no national rules for what an invoice must contain, so a US invoice is shaped by the seller's state and by what the client's accounts payable team needs. This example from a Portland photography studio to an outdoor retailer bills $9,280 with no sales tax, because Oregon has none, notes the attached Form W-9, and states the image licence and net 30 terms.
The invoice, page by page
The invoice as the client downloads and prints it.
The pricing, line by line
- Studio product photography
- 2 × $1,850.00
- Location lifestyle shoot
- 1 × $2,600.00
- Retouching and delivery
- 140 × $12.00
- Model fees
- 2 × $650.00
- Tax
- $0.00
- Total
- $9,280.00
Section by section
- Header
- The studio's name, Portland address, phone, website and billing email, with invoice number CL-0318.
- Bill to and dates
- The retailer's accounts payable contact and address, issued 13 October and due in 30 days.
- Title
- What the invoice is for, that no sales tax applies in Oregon, and that a Form W-9 is attached.
- Lines
- Two studio days, a location day, 140 retouched images and two model fees passed through, none taxed.
- Totals
- Subtotal, total and amount due in US dollars, with no tax row.
- Notes and bank details
- The sales tax position, the W-9, the image licence and net 30 terms, then routing, account and reference.
Why a US invoice looks different
There is no federal sales tax or VAT in the United States. Sales tax is set by states and often by cities and counties, and whether a service is taxable depends on the state. Some states, Oregon among them, have no general sales tax at all. There is also no federal list of what an invoice must show, so the content comes from good practice and the client's own requirements: who is billing, who is paying, what was supplied, the amount, the due date and how to pay. Larger US clients also need a Form W-9 from contractors, because it gives them the tax identification number they use to report payments on Form 1099-NEC.
How the amounts add up
Two studio days at $1,850 are $3,700, the location day is $2,600, 140 retouched images at $12 are $1,680 and two model fees at $650 are $1,300, passed through at cost: $9,280 in all, with no tax. The invoice is in US dollars and due in 30 days, the usual business to business term in the US, written as net 30 in the notes. A seller in a state with sales tax would set the rate for the place where the sale is taxed on each taxable line instead; the tax column and the tax row would then show it.
How this differs from the Australian version
The Australian page is a tax invoice: a document with legal requirements that lets a GST registered buyer claim the GST back. This US invoice has no equivalent, because there is no national consumption tax to reclaim. Instead of an ABN, the seller provides a Form W-9 when asked. Instead of GST at a single national rate, any sales tax depends on the state, and here there is none. Terms are usually net 30 rather than 14 days, and bank details use a routing number and account number rather than a BSB.
What makes this invoice work
It explains why there is no tax
The title and the notes say no sales tax is charged because Oregon has no general sales tax. A client used to paying sales tax in other states, or an auditor, sees at once that the zero is deliberate rather than a mistake.
It answers the 1099 question early
The notes say a completed Form W-9 is attached. US businesses ask their contractors for a W-9 to get the tax identification number they need for year end reporting on Form 1099-NEC, so attaching it avoids a delayed payment while accounts payable asks.
The licence travels with the bill
Images are licensed for web, catalog and social use for two years from delivery. Putting the licence on the invoice ties the usage to the payment, which is how commercial photographers protect their work when images are reused.
Questions people ask
Is there a required format for invoices in the US?
There is no federal rule setting what an invoice must contain. In practice include the seller and client, an invoice number and date, what was supplied with quantities and prices, any sales tax, the total, the due date and how to pay. This example adds a W-9 note and an image licence.
Do I charge sales tax on services in the US?
It depends on the state, and sometimes the city and county. Some states tax many services, others few, and some, such as Oregon, have no general sales tax. This Oregon studio charges none and says so on the invoice. Check your own state's rules before invoicing.
Why do clients ask freelancers for a Form W-9?
A Form W-9 gives the client the contractor's name and taxpayer identification number, which the client needs to file information returns such as Form 1099-NEC for payments to non employees. Attaching a W-9 to the first invoice, as this one notes, saves a delay in payment.
What does net 30 mean on an invoice?
Payment is due 30 days after the invoice date. This invoice is dated 13 October and due 12 November. Net 30 is the most common term between US businesses; some clients pay on net 45 or net 60 schedules, which is worth agreeing before the work starts.
Can a US client pay this invoice by card?
Yes, if the studio has connected Stripe. The invoice's pay link opens a page with the amount due and a Pay now button through Stripe Checkout, in US dollars, with the money going to the studio's own Stripe account. The bank details cover clients who prefer ACH or wire transfers.
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