Requirements for invoices in US for http://rechnung-plus.de/

Hi,

I'm European developer of the time-tracking and invoicing system Rechnung+ and now I want to implement English invoice templates for US users.

I want to know which rules are there in US regarding the look of the invoice, the numbering of invoices, required company details like VAT-ID (what's the US name for VAT-ID and is it required on the invoice?)...

Here's the screenshot of the direct translation of German invoice into English. Please let me know what shall be changed/added.



Thank you for your help in advance,
Slawa.
http://rechnung-plus.de/

Slawa

As far as I know (30+ years of invoicing clients) there are no absolute requirements for an invoice in the US. As long as it includes
your name and contact information,
your client's name and contact information,
the date,
invoice &/or purchase order number,
description of work and amount requested
any restrictions or caveats (e.g., payment is due in 30 days; work won't be released until payment is made in full, etc.)

you should be okay.

But 2 things you should be aware of:

1) there is no national sales tax equivalent to the VAT. As a foreign entity, you may or may not be required to collect state sales tax on behalf the state where your clients live. Check with a business liaison officer at the US consulate or embassy--they should be able to show you how to find out.

2) the US checking/payment system is "backward" from that in Germany. When, in the US, you send a bill to a client, they cut a check and send it to you. You then deposit it in your account. So there is no need to give clients your bank account information.

Of course, this will make no difference if you're relying on an automated withdrawal system or an automatic payment on a credit card or PayPal account.

Originally Posted by Lowengard As far as I know (30+ years of invoicing clients) there are no absolute requirements for an invoice in the US. As long as it includes ... you should be okay.

That is nice. Do I understand correctly that the invoice attached to this thread is OK as it is? Additionally I may remove the bank account information, right? But instead I should add the cheque after the cut-line. Is this cheque valid only when made on a specific paper-form or I can print it with any printer?

I also want to correct a misunderstanding - I'm not going to make invoices from Germany to US. I want to make Rechnung+ system usable in US by US freelancers or small teams to invoice US clients.

Okay, so. You want to create a standard invoice that your client ("Rechnung+ Client") will send to her or his client ("Client X"). Is that right?

In answer to your first question: yes, remove the bank account information and you can use it as-is. You might want to change the VAT ID line to "EIN" which stands for "Employer Identification Number" -- essentially this is the number a client would use to report to the federal income tax authority the money they paid you.

And, in answer to your second question, you don't include the check when you send an invoice to your client. You simply tell them "this is what you owe" and, if relevant "these are my terms"*. It is the client's responsibility to cut the check and send it to you or to arrange to transfer the money, and it comes from their bank, not yours.

-Sarah L.

*I would consider leaving a place for "Terms" on the invoice. I've been in a discussion on another site about handling clients who are reluctant to pay you--if you don't state the conditions of the sale, you can't take advantage of them. So, whether or not you include such things in the contract, if any of the statements below are relevant they should appear on the invoice:
1. Payment is due on presentation of invoice.
2. You may take a __% discount ($XX) if paid in Y business days.
3. We guarantee the quality of our work. Please contact us first if you have questions or problems.
4. All payments subject to a ___% service charge after 30 days.