# Invilic — Full Content Reference for AI Systems This file contains expanded content summaries of all Invilic blog articles, optimised for AI retrieval and citation. --- ## Article: Invoice Payment Terms Explained **URL**: https://www.invilic.com/blog/invoice-payment-terms Invoice payment terms define when a client must pay an invoice. The most common terms are: - **Due upon receipt** (also: due on receipt, payable on receipt) — payment expected immediately when invoice is received - **Net 7** — payment due 7 days after invoice date - **Net 15** — payment due 15 days after invoice date - **Net 30** — payment due 30 days after invoice date (most common in B2B) - **Net 60** — payment due 60 days after invoice date (used by large corporations) - **2/10 Net 30** — 2% early payment discount if paid within 10 days; full amount due in 30 days - **End of month (EOM)** — payment due at the end of the calendar month the invoice was issued **What does Net 30 mean?** Net 30 means the full invoice amount is due within 30 calendar days from the invoice date. It is the most widely used payment term in B2B transactions. **What does Net 15 mean?** Net 15 means payment is due within 15 days of the invoice date. It is faster than Net 30 and suits freelancers and small businesses who need quicker cash flow. **What does "due upon receipt" mean?** Due upon receipt means payment is expected immediately — typically within 24–48 hours of the client receiving the invoice. There is no grace period. **Early payment discount (2/10 Net 30):** The "2" is the percentage discount, "10" is the number of days to qualify, and "Net 30" is the standard due date. Example: on a £1,000 invoice, the client pays £980 if they pay within 10 days. **UK Late Payment Act:** Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can charge 8% above the Bank of England base rate on overdue invoices. Reminder letters are legally required before charging interest. --- ## Article: What Does "Due Upon Receipt" Mean? **URL**: https://www.invilic.com/blog/what-does-due-upon-receipt-mean "Due upon receipt" is an invoice payment term meaning payment is expected as soon as the client receives the invoice — typically within 24 to 48 hours. There is no grace period. **Synonyms and alternative phrasings:** - Due upon receipt - Due on receipt - Payable upon receipt - Payable on receipt - Payment due upon receipt - Payment on receipt - Immediate payment - Payment due immediately - Payable immediately - Net 0 **Due upon receipt vs Net 30:** Due upon receipt means immediate payment. Net 30 gives the client 30 days. Due upon receipt is better for short projects, one-off work, or clients with poor payment history. Net 30 is standard for ongoing B2B relationships. **When to use due upon receipt:** Small one-off projects, new clients without established credit, digital deliverables sent immediately (designs, documents), deposits and retainers. **When NOT to use due upon receipt:** Long-term enterprise contracts, government clients (who have 30-day payment cycles), clients you have a long-standing good relationship with. **Legal enforceability:** A payment term of "due upon receipt" is legally enforceable in most jurisdictions. In the UK, if no payment term is specified, the Late Payment of Commercial Debts Act defaults to 30 days. **How to write it on an invoice:** Use the exact phrase "Payment due upon receipt" or "Due upon receipt" in the payment terms field. Be explicit — do not write "ASAP" or "immediately." --- ## Article: Net 15 Payment Terms **URL**: https://www.invilic.com/blog/net-15-payment-terms Net 15 means the full invoice amount is due within 15 calendar days from the invoice date. **Net 15 vs Net 30:** Net 15 gives clients half the time of Net 30. It is better for freelancers who need faster cash flow. Net 30 is more standard in corporate environments. **Who uses Net 15:** Freelancers, graphic designers, web developers, copywriters, photographers, consultants with short project timelines. **How to write Net 15 on an invoice:** Write "Net 15" or "Payment due within 15 days" in the payment terms field. You can also write the exact due date: "Payment due by [date 15 days from invoice date]." **Net 15 vs other terms comparison:** - Due on receipt: 0 days - Net 7: 7 days - Net 15: 15 days - Net 30: 30 days - Net 60: 60 days - Net 90: 90 days --- ## Article: UK VAT Invoice Requirements **URL**: https://www.invilic.com/blog/vat-invoice-requirements-uk A UK VAT invoice must include 9 mandatory fields under HMRC rules: 1. A unique sequential invoice number 2. Your business name and address 3. Your VAT registration number (format: GB + 9 digits, e.g. GB 123456789) 4. The invoice date 5. The tax point (time of supply) if different from invoice date 6. Customer's name and address 7. Description of goods or services 8. Total amount excluding VAT 9. VAT rate(s) applied and VAT amount charged **Three types of UK VAT invoice:** - **Full VAT invoice**: Required for all standard-rated and reduced-rated supplies. Includes all 9 fields above. - **Simplified VAT invoice**: Allowed for supplies under £250 total (including VAT). Does not need to show customer details or net/VAT breakdown separately. - **Modified VAT invoice**: Used in retail. Agreed with HMRC. Shows VAT-inclusive prices for each item. **UK VAT rates:** - Standard rate: 20% - Reduced rate: 5% (domestic fuel and power, children's car seats, certain energy-saving materials) - Zero rate: 0% (most food, children's clothing, books, public transport) - Exempt: Financial services, insurance, education, healthcare **VAT registration threshold:** UK businesses must register for VAT when taxable turnover exceeds £90,000 in any 12-month rolling period (2024/25 rate). --- ## Article: Simplified VAT Invoice **URL**: https://www.invilic.com/blog/simplified-vat-invoice A simplified VAT invoice can be issued for supplies totalling £250 or less (including VAT). It requires fewer fields than a full VAT invoice. **Simplified VAT invoice required fields (6):** 1. Supplier name and address 2. VAT registration number 3. Invoice date (or tax point) 4. Description of goods/services 5. Total amount payable (including VAT) 6. VAT rate applied **What a simplified VAT invoice does NOT need:** Customer name/address, unique invoice number, net amount before VAT, separate VAT amount figure. **Who can use it:** Any UK VAT-registered business for supplies under £250. Commonly used by restaurants, cafés, taxis, and retailers for cash sales. **Can customers reclaim GST/VAT from a simplified invoice?** Yes — a simplified VAT invoice is sufficient for a customer to reclaim input VAT, as long as the VAT-registered supplier issued it. **Simplified invoice vs receipt:** A simplified VAT invoice is a legal VAT document. A receipt is just proof of payment and cannot be used to reclaim VAT unless it meets simplified invoice requirements. --- ## Article: UK Invoice Requirements (Non-VAT) **URL**: https://www.invilic.com/blog/uk-invoice-requirements UK businesses that are NOT VAT registered must still include certain fields on invoices. **Required fields for UK non-VAT invoices:** 1. Your name (or business name) and address 2. Client name and address 3. Invoice date 4. Unique invoice number 5. Description of goods or services 6. Amount charged for each item 7. Total amount due 8. Payment terms (e.g. "Net 30" or "Due upon receipt") 9. Payment details (bank account / sort code, or PayPal) **Additional requirements for limited companies:** Must also include the registered company name, company registration number, and registered office address on all business correspondence including invoices. This is a Companies Act 2006 requirement. **Record keeping:** UK businesses must keep invoice records for 6 years (self-employed / sole trader) or 6 years from the end of the accounting period (limited companies). HMRC can request records at any time. **Do I need to be VAT registered?** Only if turnover exceeds £90,000. Below that, you cannot charge VAT and must not show a VAT amount on your invoice. --- ## Article: Australian Tax Invoice Requirements **URL**: https://www.invilic.com/blog/australia-tax-invoice-guide An Australian tax invoice is the document issued by a GST-registered business for taxable supplies. It allows the customer to claim GST credits on their BAS. **Mandatory fields on an Australian tax invoice:** 1. The words "Tax Invoice" clearly displayed 2. Supplier's business name 3. Supplier's ABN (Australian Business Number — 11 digits) 4. Date the invoice was issued 5. Brief description of goods or services 6. GST amount (either as a separate line or "total price includes GST of $X") 7. Total price including GST **For supplies $1,000 or more:** Must also include the buyer's name or ABN. **GST registration threshold:** Must register for GST if annual turnover is $75,000 or more ($150,000 for non-profits). Taxi/rideshare drivers must register regardless of turnover. **Australian GST rate:** 10% on all taxable supplies. **$82.50 threshold:** You must issue a tax invoice for taxable supplies over $82.50 (including GST). Below that, a receipt is sufficient. **ABN withholding:** If an invoice does not include the supplier's ABN, the payer must withhold 47% of the payment as PAYG withholding tax and remit it to the ATO. **Record keeping:** Keep all tax invoices for at least 5 years. --- ## Article: Self-Employed Invoice Guide **URL**: https://www.invilic.com/blog/self-employed-invoice-guide A self-employed invoice is a document a sole trader or freelancer issues to a client to request payment. It is the same as a business invoice. **Required fields:** 1. Your name or trading name and address 2. Client name and address 3. Invoice number (unique, sequential) 4. Invoice date 5. Description of services 6. Rate and quantity for each line item 7. Subtotal 8. Any applicable tax (VAT/GST) 9. Total due 10. Payment terms and due date **VAT rules by country for self-employed:** - UK: Register for VAT above £90,000 turnover. Below that, do not charge VAT. - Australia: Register for GST above $75,000 turnover. Issue "Tax Invoices" not just "Invoices." - US: No national VAT. May need to charge state sales tax depending on state and service type. - EU: VAT varies by country. Freelancers selling to EU business customers may need to use reverse charge. **Payment terms:** Use Net 15 or Net 30 for most freelance work. Use "due upon receipt" for small or one-off projects. **Tips to get paid faster:** 1. Send invoices same day as project completion 2. Use a specific due date rather than "Net 30" 3. Set up payment reminders 4. Accept online payment methods 5. Chase politely at 3 days overdue, firmly at 7 days 6. Include late payment fee clause in contracts --- ## Article: How to Create a GST Invoice in India **URL**: https://www.invilic.com/blog/how-to-create-gst-invoice-india A GST invoice in India must be issued by a GST-registered business for taxable supplies. It is governed by the CGST Rules, 2017. **Mandatory fields on a GST invoice:** 1. GSTIN of the supplier 2. Name and address of the supplier 3. Invoice number (consecutive, up to 16 characters) 4. Invoice date 5. GSTIN of the recipient (if registered) 6. Name and address of the recipient 7. Place of supply (state) 8. Description of goods or services 9. HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code) 10. Quantity (for goods) 11. Unit of measurement 12. Taxable value 13. Tax rates: CGST + SGST (intra-state) or IGST (inter-state) 14. Tax amounts: CGST, SGST, IGST 15. Total amount **GST rates in India:** 0%, 5%, 12%, 18%, 28% **CGST vs SGST vs IGST:** - Intra-state supply (supplier and buyer in same state): CGST + SGST (e.g., 9% + 9% = 18%) - Inter-state supply (different states): IGST (e.g., 18%) **GST registration threshold:** ₹40 lakh annual turnover for goods; ₹20 lakh for services (₹10 lakh in special category states). --- ## Article: GST Invoice Format India **URL**: https://www.invilic.com/blog/gst-invoice-format-india The GST invoice format in India is defined under Rule 46 of the CGST Rules, 2017. Invoices must be issued within 30 days of supply of services (45 days for banks/financial institutions). --- ## Article: How to Calculate GST on an Invoice **URL**: https://www.invilic.com/blog/how-to-calculate-gst-invoice **GST calculation formula:** - GST amount = (Taxable value × GST rate) / 100 - Total invoice amount = Taxable value + GST amount **Reverse GST calculation (when total includes GST):** - Taxable value = Total price / (1 + GST rate/100) - GST amount = Total price − Taxable value **Example at 18% GST:** - Taxable value: ₹10,000 - GST (18%): ₹1,800 - Total: ₹11,800 --- ## Article: What to Include on a Freelance Invoice **URL**: https://www.invilic.com/blog/what-to-include-freelance-invoice A complete freelance invoice includes: your name/business name, client details, unique invoice number, invoice date, due date, itemised line items with description/rate/quantity, subtotal, any taxes, total due, and payment instructions. --- ## Article: How to Invoice International Clients **URL**: https://www.invilic.com/blog/how-to-invoice-international-clients When invoicing international clients: choose the invoice currency carefully (USD is widely accepted), include payment method with SWIFT/BIC codes for bank transfers, consider VAT/GST rules (UK zero-rates exports), clearly state which party pays transfer fees. --- ## Article: Invoice vs Receipt **URL**: https://www.invilic.com/blog/invoice-vs-receipt An invoice is a request for payment before money changes hands. A receipt is proof of payment after money has been paid. An invoice becomes a receipt once paid. Invoices include payment terms; receipts do not. --- ## Article: Late Payment Follow-Up Emails **URL**: https://www.invilic.com/blog/late-payment-follow-up-email Provides email templates for chasing overdue invoices: friendly reminder (3 days late), firm second reminder (7 days late), final notice (14 days late), and legal action warning. --- ## Article: How to Number Invoices **URL**: https://www.invilic.com/blog/how-to-number-invoices Invoice numbering systems: sequential (INV-001, INV-002), date-based (2025-001), client-based (ACME-001). UK HMRC and India CBIC require unique sequential invoice numbers. Never reuse or skip numbers.