How to issue invoices as a freelancer in 2022
You have to get paid in order to be successful. It doesn’t matter if you do one freelance gig or run a full-time freelance business, you have to calculate your time and invoice your clients. Being a freelancer can be a highly rewarding experience. After all, as the boss of your small business, you can set your hours and you are directly in charge of how much money you can make. On the one hand, it provides an incredible amount of freedom and on the other, it requires you to take many matters into your own hands. Many freelancers enjoy the freedom of being a freelancer while struggling with the financial burdens and to do’s. Actually, you don’t have to be intimidated by invoicing. All you have to do is to understand the basic elements of an invoice.
As a freelancer, you have to request payments and follow up on when your payment is due for your products or services that you agreed with a client. This can sometimes be difficult to do, especially if you are juggling many projects and clients simultaneously. Issuing a professional invoice can become overwhelming, so let’s talk about how to make it easier.
You’ve completed the hardest part by doing your job! The rest is easy. If you want your invoices to look more professional, check our invoice generator.
VAT invoices
Soon after you start freelancing, you will come across the concept of value-added tax (VAT). If a client lives somewhere VAT is in effect, they will want to see a VAT invoice. This type of invoice is a document that lays out the details of a service, your contact information (i.e. your phone number and email address) and any other relevant data such as your banking details.
Providing a VAT invoice will help your VAT-registered clients reclaim the VAT that was charged to them. It will also boost your client retention rates, especially when it comes to holding onto long-term clients.
When is an invoice valid?
A valid invoice contains the following:
The party being billed
A PO (purchase order) number when necessary and the contact person
Invoice number
Invoice date
Supplier details
Service details
Agreed amount to be charged to the client
Applicable VAT amount and VAT rate
When you send an invoice including a VAT statement, yet excluding a VAT number to your client, they will not be able to claim the VAT back. This may lead to a drawback from paying your invoice on its due date. If you do have a VAT number that you can include in the invoice, the invoice can act as a receipt for them, which they can use to deduct the VAT amount from their taxes.
Countries requiring VAT ID for invoicing and VAT rates
Country |
Tax Rate |
AUSTRALIA | GST2 10% |
AUSTRIA |
VAT 20% |
AZORES (Portugal) |
VAT 18% |
BELARUS |
VAT 20% |
BELGIUM |
VAT 21% |
BOSNIA & HERZEGOVINA |
VAT 17% |
BOTSWANA |
VAT 12% |
BRAZIL |
VAT 7-18% (per state) |
BULGARIA |
VAT 20% |
CANADA |
GST 5% |
CANARY ISLANDS |
VAT 0% |
CEUTA (Spain) |
VAT 0% |
CHILE |
VAT 19% |
CHINA |
VAT 17% |
CORSICA (France) |
VAT 20% |
COTE D’ IVOIRE |
VAT 20% |
CROATIA |
VAT 5-25% |
CURACAO |
VAT 6-9% |
CYPRUS |
VAT 19% |
CZECH REPUBLIC |
VAT 10, 15, 21% |
DENMARK |
VAT 25% |
ESTONIA |
VAT 20% |
FAROE ISLANDS (Denmark) |
VAT 25% |
FINLAND |
VAT 24% |
FRANCE |
VAT 20% |
GERMANY |
VAT 19% |
GIBRALTAR |
VAT 0% |
GREECE |
VAT 24% |
GUADELOUPE (France) |
VAT 2.1, 8.5% |
GUERNSEY (United Kingdom) |
VAT 0% |
HONG KONG |
GST 0% |
HUNGARY |
VAT 27% |
ICELAND |
VAT 24% |
INDIA |
VAT 1-5%, 15% |
INDONESIA |
VAT 10% |
IRELAND |
VAT 23% |
ISLE OF MAN (United Kingdom) |
VAT 20% |
ISRAEL |
VAT 17% |
ITALY |
VAT 22% |
JAPAN |
VAT 8% |
JERSEY (United Kingdom) |
GST 5% |
KAZAKHSTAN |
VAT 12% |
LATVIA |
VAT 21% |
LEBANON |
VAT 11% |
LESOTHO (SACU) |
VAT 15% |
LIECHTENSTEIN (Admin by Switz.) |
VAT 7.7% |
LITHUANIA |
VAT 21% |
LUXEMBOURG |
VAT 0-17% |
MACAU, CHINA |
VAT 0% |
MACEDONIA |
VAT 18% |
MADAGASCAR |
VAT 20% |
MADEIRA (Portugal) |
VAT 22% |
MALAYSIA |
SST (VAT) 5-10% |
MALTA |
VAT 18% |
MARTINIQUE |
VAT 2.1, 8.5% |
MAURITIUS |
VAT 15% |
MAYOTTE (France) |
VAT 0% |
MELILLA (Spain) |
VAT 0% |
MEXICO |
IVA 5 16% |
MIQUELON (France) |
VAT 0% |
MOLDOVA |
VAT 20%, reduced rate: 8% |
MONACO (Admin by France) |
VAT 20% |
MONGOLIA |
VAT 10% |
MONTENEGRO |
VAT 19% |
MOROCCO |
VAT 20% |
NAMIBIA (SACU) |
VAT 15% |
NETHERLANDS |
VAT 21% |
NEW CALEDONIA (France) |
GTC (VAT) 3-22% |
NEW ZEALAND |
GST 15% |
NORWAY |
VAT 25% |
PAKISTAN |
GST 13-17% |
POLAND |
VAT 5-23% |
PORTUGAL |
VAT 23% |
PUERTO RICO (USA) |
VAT 11.5% |
REUNION ISLAND (France) |
VAT 2.1-8.5% |
ROMANIA |
VAT 18% |
SENEGAL |
VAT 18% |
SERBIA |
VAT 20% |
SINGAPORE |
GST 7% |
SLOVAKIA |
VAT 20% |
SLOVENIA |
VAT 9.5-22% |
SOUTH AFRICA |
VAT 15% |
SOUTH KOREA |
VAT 10% |
SPAIN |
VAT 21% |
SRI LANKA |
VAT 15% |
ST. BARTHELEMY (France) |
VAT 2.1-8.5% |
ST. MARTIN (French side) |
VAT 5% |
ST. PIERRE (France) |
VAT 0% |
SWAZILAND (SACU) |
Sales tax (VAT) 15% |
SWEDEN |
VAT 25% |
SWITZERLAND |
VAT 8% |
TAHITI (France) |
VAT 16% |
TAIWAN, PROVINCE OF CHINA |
VAT 5% |
TASMANIA (Australia) |
GST 10% |
THAILAND |
VAT 7% |
TUNISIA |
VAT 19% |
TURKEY |
VAT 18% |
UNITED ARAB EMIRATES |
VAT 5% |
UKRAINE |
VAT 20% |
UNITED KINGDOM |
VAT 20% |
WALLIS & FUTUNA (France) |
VAT 2-6% |
Make invoicing easy
By choosing Ruul, you can easily create an invoice, track your payments and get paid on time. Ruul enables freelancers to issue VAT invoices without having to be a business owner! After you issue your online invoice, your actual commercial invoice is sent to your e-mail address immediately. You can use this VAT-ready freelance invoice to secure your payments and get paid faster.
This time on our exclusive interview series with our partners Ruulmates on the Mic, we welcome Ece Kurtaraner, a solo Community and Events Consultant based in Manchester.
... read more.Despite facing numerous obstacles, black women leaders have been continuing the fight to break barriers and fight racism in the workplace.
... read more.Master the ins and outs of IR35 with our ultimate guide for businesses and contractors.
... read more.