Knowledge Base
FAQ
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What is Invoice Maker?
Welcome to Invoice Maker! If you are a current business owner or just getting started while pursuing your passion, we’re here to help you keep your accounting processes on track.
We make it easy for you to bill and get paid by your clients. Our custom dashboard quickly shows you what invoices you’ve sent, who owes you money, and what payments you’ve collected, allowing you to spend more time on the things that matter.
Invoice Maker offers an option to integrate with a simple credit card processing platform that makes it seamless for your customers to make safe and secure payments directly through our app or online.
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What Does Invoice Maker Cost?
Invoice Maker gives you the opportunity to create and manage a secured account where you can customize, save, edit, send, and track your invoices, etc; all for FREE!
If electing to utilize Invoice Maker to accept payments through our system (optional), Users acknowledge that a 3rd Party Payment Processing Service Provider is used. The Payment Processing Service Provider may impose payment processing fees charged at a rate that is not determined by Invoice Maker. In full disclosure, Invoice Maker may receive a portion of the processing fee per our agreement with the Payment Processing Service Provider.
For more information, you may read our Terms of Use [HERE].
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Why Can't I Log In?
Using your Email Address Directly
If you are having trouble logging into your Invoice Maker account, there are a number of possible reasons. We recommend troubleshooting to see if any of the following issues are occurring:
- Incorrect email address entered
- Incorrect password entered (case sensitive)
- If you cannot remember your password, simply click Forgot Password? from the Login Screen
- Previously created an account using a social login
- Apple Sign In
- Google Sign In
- Facebook Sign In
- If you originally created your account using one of these social logins, you will not be able to login directly with an email address
- You previously did not create an account with Invoice Maker, even though you may have sent invoices in the past
Social Log In Issues
When using the Facebook social login button to originally create your Invoice Maker account, you may not be able to log in at a later date, using the same credentials. Based on your Facebook settings, you have the option of hiding your email address when logging into third-party applications. If you have this option selected, Facebook will share a uniquely-generated address with Invoice Maker called a "private relay email address or User ID" instead of sharing your personal email address.
If you inadvertently created your Invoice Maker account using a private relay email address or User ID, you will be required to log in using that separate identifier on any PC, macOS, iOS, or Android device.
If it was previously turned off in your Facebook settings, turn this option ON to be able to use your Facebook credetnitals to log in to other apps. To do so, follow the prompts below:
Go to your Facebook account settings.
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Click
in the top right of Facebook.
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Select Settings & Privacy, then click Settings.
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Click Apps and Websites in the left menu.
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Look under Preferences.
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Scroll down to Edit under Apps Websites and Games.
If you wish to continue to use the custom User ID to log into Invoice Maker, you will need to access your Facebook settings to view your User ID for log in.
To find your user ID:
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Click
in the top right of Facebook.
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Select Settings & Privacy, then click Settings.
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Click Apps and Websites in the left menu.
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Click View and edit next to the Invoice Maker app.
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Scroll down to Learn more. Your user ID is in the paragraph below.
You will use these same steps to reset the Invoice Maker app from your linked login accounts on Facebook. If you revoke (remove) your Invoice Maker app using the steps above, you can log in to Invoice Maker again directly using the Facebook social login button, and "re-link" the app selecting the appropriate credentials (personal email or User ID) upon logging back in.
If troubleshooting the scenarios above does not grant you access to your Invoice Maker account, simply send an email to support@invoicemaker.com with the following information:
- First Name / Last Name
- Email Address used to create the account
Our dedicated support staff will research the issue further and contact you back with instructions on how to resolve your login issue.
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How Do I Reset My Password?
You can change your password for security reasons or reset it if you forget it. Your Invoice Maker password is used to access your online dashboard which includes all of your invoice and client data, so it is important to keep it safe and update it periodically.
To change your password:
- If logged in, click on your Name in the top right corner of your dashboard
- Click Logout
- From the Login Screen, click Forgot Password?
- Enter your Email Address that you signed up with
- Click Send Reset Instructions
- Instructions will be sent to your email to reset your password
- Follow prompts in your email from hello@invoicemaker.com
- Return to the Login Screen
- Enter your new password, and you will be taken to your dashboard using your new password credentials
To reset your password when not logged in:
- From the Login Screen, click Forgot Password?
- Enter your Email Address that you signed up with
- Click Send Reset Instructions
- Instructions will be sent to your email to reset your password
- Follow prompts in your email from hello@invoicemaker.com
- Return to the Login Screen
- Enter your new password, and you will be taken to your dashboard using your new password credentials
To ensure delivery of your email instructions, check your Spam or Bulk Mail folders.
- Add hello@invoicemaker.com to your address book
**Choose a password that you haven’t already used with the account**
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What is an Invoice?
An invoice is a document that outlines service or goods provided in exchange for payment or trade. The party requesting payment (“payee”) creates the invoice writing their details, client’s details, description of goods or services, and the total amount owed. The preferred payment method should be included and once complete should be sent to the client (“payer”) via e-mail, standard mail, or text message.
Invoice Cover Sheet – For a more professional look and acts as a Table of Contents for the itemized list of charges.
History
The oldest known human writing is actually a 7,000 year old sales receipt. While we know the sales receipt was for clothing, the oldest known form of payment was made in beer in the same ‘cuneiform’ writing.
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How Long Should I Keep an Invoice?
At least 3 years for USA residents. According to the Internal Revenue Service (IRS), an individual or company is required to keep an invoice under the following circumstances:
- 4 years for invoices related to the payment of employees. The 4-year period begins after the date the tax is due or is paid, whichever is later;
- 6 years for invoices that are not reported on your income taxes and represent more than 25% of gross income;
- 7 years if filed the invoices are related to a claim for a loss from worthless securities or bad debt deduction; and
- Indefinitely if the invoice was made in a tax year where no filing was made or if a fraudulent return was filed.
Account Management
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Creating an Account
Though a profile is not required to send an invoice through Invoice Maker, you have the ability to save the invoice and all customer data by creating a 100% FREE account. By creating an account you will be able to easily track, update, and monitor all invoice transactions that you create.
✅ Save Invoices ✅ Save Products
✅ Accept Payments ✅ Send Estimates
✅ Save Clients ✅ View Reports
All you need is a valid email address and to create a password, and you will be able to access your Invoice Maker secure dashboard. You can also sign up using your social logins from Google and Facebook.
Sign up with Invoice Maker:
With Google Sign In
- Go to the signup page here
- Click on the Sign up with Google button
- Enter your email address or phone number and click Next
- Enter your Google Password and click Next
- You’ll be taken to your Invoice Maker dashboard to complete your registration
With Facebook
- Go to the signup page here
- Click on the Sign up with Facebook button
- Enter your Email Address or Phone Number and enter your Facebook Password
- Click Login
- You’ll be taken to your Invoice Maker dashboard to complete your registration
Sign up with Invoice Maker via email address
- Go to the signup page here
- Click on Not a Member? Sign up here
- Enter your Email Address
- Next, create a password (minimum of 6 characters)
- You’ll be taken to your Invoice Maker dashboard to complete your registration
You will receive a confirmation email requiring you to verify your email address. Follow the prompts and you will be directed to register and set up your account.
While registering your account, you will be able to add the details for your business. Follow the prompts to input your company profile’s information.
- Country (outside USA will be added soon)
- Company Information
- Location
- Customization
- Set up your account to Accept Payments (optional)
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Account Setup
Welcome to Invoice Maker! After registering your account and verifying your email address, you have the ability to personalize your company profile and settings. You will add your company details, preferred contact information, and even upload your company’s logo.
Take it a step further to customize your invoices according to the format that fits your brand. You can update your default currency, set your preferred date format, and choose your invoice color.
With Invoice Maker
- Go to the signup page here
- Enter in your email address
- Next, create a password (minimum of 6 characters)
- Click on Login and you’ll be taken to your dashboard to complete your registration
After you’ve set up your account, you can always go back into your settings on your dashboard to make updates. From here, you can also upload a company logo, and change the theme of your invoices.
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Adding a Logo
With Invoice Maker, you are able to upload your company's logo to display it on every invoice. This is not mandatory, but it does help to create continuity between invoices and help to build brand loyalty.
From your dashboard:
- Click on Settings
- Click on Account
- Click on Upload Logo
- Click Save Changes
You are able to drag-and-drop an image to upload, or browse your computer.
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Forgot Password / Resetting Password
You can change your password for security reasons or reset it if you accidentally forget it. Your Invoice Maker password is used to access your online dashboard which includes all of your invoice and client data, so it is important to keep it safe and update it periodically.
To change your password:
- If logged in, click on your Name in the top right corner of your dashboard
- Click Logout
- From the Login Screen, click Forgot Password?
- Enter the Email Address that you signed up with
- Click Send Reset Instructions
- Instructions will be sent to your email to reset your password
- Follow prompts in your email from hello@invoicemaker.com
- Return to the Login Screen
- Enter your new password, and you will be taken to your dashboard using your new password credentials
To reset your password when not logged in:
- From the Login Screen, click Forgot Password?
- Enter the Email Address that you signed up with
- Click Send Reset Instructions
- Instructions will be sent to your email to reset your password
- Follow prompts in your email from hello@invoicemaker.com
- Return to the Login Screen
- Enter your new password, and you will be taken to your dashboard using your new password credentials
To ensure delivery of your email instructions, check your Spam or Bulk Mail folders.
- Add hello@invoicemaker.com to your address book
**Choose a password that you haven’t already used with the account.
Invoices
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Customizing Your Invoices
When setting up your Invoice Maker account, you have the ability to customize the look of your invoices. You can select your default currency, date format, and invoice color scheme.
From your dashboard:
- Click on Settings
- Click on Invoice Customization
- Choose your Default Currency from the dropdown
- USD (more currencies may be added in the future)
- Choose your Date Format from the dropdown
- MM/DD/YY
- DD/MM/YY
- Choose your Invoice Color
- Set your Default Invoice Notes
- These notes will appear on every invoice you create.
- Set your Default Terms
- Next Day
- 7 Days
- 14 Days
- 30 Days
- 60 Days
- 90 Days
- 180 Days
- 365 Days
- Invoice Maker Branding Toggle (ON/OFF)
Click Save Changes to save any updates made to the customization settings.
**These settings can be updated at any time, but any changes made will appear only on invoices made after the settings have been saved. No previous invoices will reflect the changes made to the updated customization settings.
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Invoice Payment Terms
You are able to customize your invoice payment terms based on your agreement with your customers. We offer some standardized timeframes, as well as, a custom field for you to specify any terms you like.
Available Invoice Terms:
- None
- Custom
- Next Day
- 7 days
- 14 days
- 30 days
- 60 days
- 90 days
- 180 days
- 365 days
If you preset your payment terms for all of your invoices through your Settings Tab, the invoice due date will populate automatically based upon your selected terms.
If you select custom in the terms dropdown, nothing changes. The due date stays whatever the last selection was and you can manually edit the due date. You can always do this anyway, even if you have selected predetermined terms through your Settings.
If you select none in the terms dropdown, the due date input should be hidden.
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Making an Invoice
From your Invoice Maker account dashboard, you are able to make personalized and customized invoices with ease. Once you verify your account, you can create your first invoice upon log in.
To make an invoice, simply follow the prompts:
- Click on Make Invoice
- Add all Pertinent Data pertaining to the invoice
- Select a client from the Bill To dropdown menu
- Enter the Item, Price, and Quantity of the products or services being invoiced
- To add multiple items, click New Item
You are able to add an Item Description, set the Tax, and allocate a Discount per item (if applicable).
Once you add the pertinent data to an invoice (client, product, taxes, discounts), that data will automatically save in your Invoice Maker dashboard for future use. You can find the saved data in the menu bar on the left-hand side of your dashboard.
Once your invoice is complete, you can add notes through Options. You can also Save, Preview, Download, or Send your invoice.
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Saving an Invoice
Auto Saving
Saving an invoice without sending it to a client will save the invoice as a draft.
Sending an invoice will automatically save the invoice as unpaid. Downloading an invoice will automatically save the invoice as unpaid.
Status Dropdown
Until a user saves their invoice, the status dropdown is hidden. Once saved, the status appears above the “Save” button.
Send/Download Autosave Alert (can no longer edit)
If you attempt to download or send an invoice, the invoice will be “auto-saved”. If you utilize the auto-save feature, you will no longer be able to edit this particular invoice. You have the ability to set your preferences to “not show this alert again.”
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Updating an Invoice
Once you have created your invoice by adding all of the necessary information, you are able to update it in various ways. By utilizing the “Invoices” button on the left-hand side of your screen, you can view a complete list of your invoices. For each individual invoice you can:
- Send
- Preview
- Download
- Edit
- Duplicate
- Archive
**You will not be able to edit an invoice after it has been sent or downloaded.
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Adding a Discount
From your Invoice Maker account dashboard, you are able to add a discount to your invoice. Once you create a discount, you have the option to apply it to the current invoice only or add it to My Discounts to make the discount available to all other invoices created.
To add a discount, simply follow the prompts:
- Click on Make Invoice
- Click on the Discount dropdown button next to the Product Description
- From here, you can search and select a previously created discount or create a new one
- You have the ability to add a discount from this dropdown button to add and save a discount even if you do not want to add it to the current product
- Click Add New Discount or Add Another Discount
- Input the Discount Name
- Add the Discount as a percentage or a flat dollar amount
- Select Apply to this invoice and/or Add to my discounts
- Click Apply
You have the ability to update or delete your discounts at any time. You are able to add multiple discounts to the same product, if applicable. Updates to the details of discounts will only reflect on invoices made after the edits have been completed and saved. Changes to discount data will not update previous invoices that include that discount.
Products
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Creating a Product
From your Invoice Maker account dashboard, you are able to create products with ease.
To create a product, simply follow the prompts:
- Click on Products on the left-hand side of your dashboard
- Click New Product
- Add all Pertinent Data pertaining to the new product
- Product Name
- Description (50 character limit)
- This description will be listed on your invoices
- Price
- Taxes (if applicable)
- You can add a new tax, or assign an existing tax to the new product
- Click Add
You can also create a product directly from the Make Invoice screen.
- Click on Select Product
- Click Add New Product
- Add all Pertinent Data pertaining to the new product
- Click Add
Once the new product is created, you can add it to any future invoice. You have the ability to edit or delete a product from your Products Tab at any time.
**Products that are edited will only reflect their new information on future invoices. Previous invoices that utilized the old product's information will not be updated.
**It is the User's responsibility to verify any and all tax rates to be imposed prior to adding to any invoice.
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Editing a Product
From your Invoice Maker account dashboard, you are able to edit products with ease.
To edit a product, simply follow the prompts:
- Click on Products
- Use the Search Bar to locate the product you wish to edit
- Click on the Edit Product “pencil” icon under Actions for the product you wish to make changes to
- Edit any Pertinent Data relating to the product
- Name
- Description
- Price
- Taxes (if applicable)
- Click Update
You have the ability to edit or delete a product from your Products Tab at any time.
**Products that are edited will only reflect their new information on future invoices. Previous invoices that utilized the old product's information will not be updated.
**It is the User's responsibility to verify any and all tax rates to be imposed prior to adding to any invoice.
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Viewing Your Products
From your Invoice Maker account dashboard, you are able to save and view all of your company's products in one place. This makes it easy to search all of your products and services in case you need to make updates or delete any that you no longer offer.
From the Invoice Maker dashboard, simply click on Products to view your product list.
You have the ability to edit or delete a product from your Products Tab at any time.
**Products that are edited will only reflect their new information on future invoices. Previous invoices that utilized the old product's information will not be updated.
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Adding a Product Tax
From your Invoice Maker account dashboard, you are able to add a tax to your products. You can either add a tax when creating a new product or adding and saving it after the initial product was created.
Once you save a tax, it will be available to assign to any other products you create.
To add a product tax to a product that’s already been created, simply follow the prompts:
- Click on Products
- Click on the Edit Product “pencil” icon for the product you wish to make changes to
- Click Add A Tax To This Product
- Click Add New Tax
- Input the Tax Percentage
- Add the Tax Name
- Click Update Product
You may create a tax for the current invoice, or save it for later use directly from the invoice screen. If you wish to save it for later, add using the instructions above but make sure you do not select it after saving it in your list of taxes.
You have the ability to update or delete your product taxes at any time. You are able to add multiple taxes to the same product, if applicable. Updates to the details of product taxes will only reflect on future invoices after the edits have been completed and saved. Changes to tax information will not update previous invoices created that include that tax.
**It is the User's responsibility to verify any and all tax rates to be imposed prior to adding to any invoice.
Clients
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Adding a Client
With Invoice Maker, you are able to add and store all of your client data in your secure dashboard. By adding and saving your clients’ information, you will be able to invoice, communicate with, and monitor the payment activity for each of your clients with ease.
From your Invoice Maker dashboard, simply follow the prompts to add a client:
- Click on Clients
- Click New Client
- Enter the Client Details
- Click Add Client
You can also add a client while creating your invoice.
From the Make Invoice page:
- Click the drop-down menu where it says Bill To
- Click Add New Client
**You are able to add an existing client to the invoice being made, or simply add that client's information to your dashboard for later use.
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Editing a Client
With Invoice Maker, you are able to add and store all of your client’s contact information in your secure dashboard. It is easy to update your client’s information if your main point of contact has changed, or for any other changes that may need to be made.
From your Invoice Maker dashboard, simply follow the prompts to edit or update a client’s data:
Click on Clients
- Use the Search Bar to locate the client you need to edit
- Click on the Edit Client tool for your client
- Update the Client Details
- Click Update Client
Payments
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Verify Your Account to Accept Credit Card Payments
When growing your business, there is nothing more important than being able to reach and accommodate your clients across all channels. That is especially true for accepting payments, as well. 78% of all customers pay their invoices using a credit card and spend 12-18% more when paying by credit card.
Invoice Maker offers you the opportunity to collect credit card payments directly through our platform.
Though you can still have an account and send invoices without collecting payments through Invoice Maker, linking your account to a Third-Party Processing Service Provider is a beneficial tool that takes all the legwork out of getting paid. Just send your invoice, sit back, and collect your payment without lifting a finger.
Steps to accept credit card payments:
- Create your Invoice Maker account
- Verify your account
- Connect it to our 3rd Party Payment Processing Service Provider, Stripe
To verify your account to accept payments, follow the prompts below:
- Click on the banner at the top of your dashboard where it says Verify Your Account
- Select Merchant, Stripe, and click Next
- Gather information needed to connect your account
- Click Connect with Stripe
- Follow the prompts to continue setting up with Stripe
- Secure account. Make sure to copy and store your emergency backup code, once Stripe issues you one
- Add all pertinent Business and Personal Details
- Add your Preferred Bank Account (where you'd like your payments to be sent once paid via credit card)
- Add your Driver's License information or other Government-Issued Identification for verification
- Submit and you're all done! Start collecting payments as soon as you send your invoices through Invoice Maker!!
All personal information entered into the Third-Party Processor, Stripe's, platform is 100% secure. Invoice Maker does not have access to any financial or personal information entered through Stripe. All payments facilitated through Invoice Maker's platform are processed externally by the Third-Party Processor directly, and any disputes regarding Third-Party platform payments or fees must be directed to the Third-Party platform itself and will not be responded to through Invoice Maker. To read more about how your data is secure and how your information is used through Stripe, you can review their Privacy Policy HERE.
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Payments Overview
From your Invoice Maker account dashboard, you are able to manage your payments received outside the Invoice Maker system, and through our 3rd Party Payment Processors, e.g. Stripe.
Manual Payments
Definition: A manual payment is a cash, check or "other" payment that a business owner has received outside of the Invoice Maker system. The purpose is to track payments and balances when a payment has been received outside our system, either by cash, check, or "other", which could be anything such as a payment made by Paypal, cashApp, Venmo, etc.
Manual Payment Requirements:
Business Owner Input
- User has to manually input payment type and amount
- Payment Amount: required field
- Payment Date: required field. The payment date defaults to the current date it is updated
- Payment Method: Cash, Check, Other (required field)
- Internal Payment Note: plain text field for whatever the user wants (e.g. check number, specify "other" method (not required field). "Internal Payment Note" lets the user know only they will see the note
Invoice
- Invoice Total: Total before any payments. This is always displayed as "Invoice Total"
- Paid to Date: The amount currently paid to date, displayed as "Paid to Date"
- Balance Due: Invoice total - Paid to date, displayed as "Balance Due"
Status
- An invoice remains Unpaid until the balance is paid-in-full, and there is a $0.00 balance due
- Refund is used for invoices that have the entire balance refunded
- Partially Refunded is used when a partial payment is refunded
Partial Payments
Definition: any payment amount entered against a balance due that is less than the total amount due
Requirements:
- Recipient will always be presented with a payment screen that is auto-filled with the total amount due to the entire invoice
- Recipient will always be able to enter a lower amount
- cash - amount
- check - amount - check #
- other - note field (Venmo, cashApp, Paypal, etc.)
- collect deposit
- collect partial payment
- refund deposits and partial payments
Deposits: default amount on the first payment is only the deposit amount
Refund: If a refund is not for the total amount, the status = partially refunded. If a refund is for the full amount, status = refunded
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Taxes (Sales, VAT - USA only)
Sales Tax (USA only)
A sales tax is calculated as a percentage of goods sold and is determined by the location where the sale took place. Sales taxes are administered by each State, County, and District(s) in the USA.
- Use TaxJar to find a sales tax by zip code.
Value-Added Tax (VAT)
A value-added tax (VAT) is a tax that is calculated based on the cost of the goods or service charged. This tax is administered by most countries and usually is targeted at imported items.
- Use Avalara to find the VAT .
COUNTRY VAT SOURCE USA 0% (although, there is sales tax in most states) N/A Argentina 21% PWC Australia 10% TransferWise Bangladesh 15% nbr.gov.bd Belgium 21% www.belgium.be Brazil Depends on the State. Average is 17% KPMG Bulgaria 20% www.tmf-group.com Canada 5% to 15% www.worldwide-tax.com Chile 19% home.kpmg China 13% www.tradingeconomics.com Colombia 19% Avalara Dominican Republic 18% KPMG Finland 24% Finland Ministry of Finance France 20% www.tmf-group.com Germany 19% www.tradingeconomics.com Greece 24% www.tradingeconomics.com Hong Kong 0% www.worldwide-tax.com Hungary 27% Avalara India 12.5% to 15% www.worldwide-tax.com Ireland 23% Irish Tax and Customs Israel 17% Israel Tax Authority Italy 22% Ministry of Economy and Finance Jamaica 16.5% www.taxsummaries.pwc.com Kenya 0% or 16% www.bdo.ea.com Malaysia 6% lawofficemalaysia.com Mexico 16% Avalara Morocco 7%, 10%, 14%, or 20% (Standard is 20%) KPMG Netherlands 0%, 9%, or 21% (Standard is 21%) Government of Netherlands New Zealand 13% www.world.tax-rates.org Nigeria 7.5% Avalara Norway 25% The Norwegian Tax Administration Pakistan 17% taxsummaries.pwc.com Panama 7% (10% and 15% for alcohol and tobacco, respectively) KPMG Peru 18% Avalara Philippines 0% to 12% Philippines Bureau of Internal Revenue Poland 23% Polish Investment and Trade Agency Portugal 23% Avalara Puerto Rico (USA) 0% N/A Russia 10% or 20% (Updated from 18% in 2019) Federal Tax Service of Russia Saudi Arabia 5% General Authority of Zakat & Tax Singapore 7% Inland Revenue Authority of Singapore South Africa 15% South African Revenue Service Spain 21% Spanish Tax Agency Sri Lanka 15% Sri Lanka Inland Revenue Sweden 6%, 12%, and 25% (Standard is 25%) Swedish Tax Agency Switzerland 7.7% Swiss Federal Tax Administration Thailand 7% Thailand Revenue Department Ukraine 20% Avalara United Kingdom 20% GOV.UK Vietnam 5% or 10% Ministry of Justice Zimbabwe 14% Zimbabwe Revenue Authority Are Services Taxed?
Services are taxed based on the service provider’s country. In most countries, services are taxed at the Value-Added Tax (VAT).
In the USA, only four (4) States charge taxes on general services:
- Hawaii – 4% (tax.hawaii.gov)
- New Mexico – 5% and will be 5.125% on July 21, 2021 ( www.avalara.com)
- South Dakota – 4.5% (dor.sd.gov)
- West Virginia – 6% (tax.wv.gov)
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Shipping
Is Shipping Taxed?
Most likely no but depends on the final destination of the product. For example, in the USA shipping is taxed in about half the States as long as the shipping charge is separate from the sale (see table below).
State Shipping Taxed? Source Alabama Not subject to sales tax if the shipping charges are listed separately on the invoice. Admin Code 810-6-1-.178 Alaska No sales tax. N/A Arizona Not subject to sales tax. Handling charges are taxed. If shipping and handling, the entirety is taxed. Admin Code § R15-5-133 Arkansas Subject to sales tax.
GR-18 California Not subject to sales tax if the shipping charges are listed separately on the invoice. Publication 100 (Shipping and Delivery Charges), Article 12 Regulation 1628
Colorado Not subject to sales tax if the shipping charges are listed separately on the invoice. Colorado Sales Tax Guide (Page 10) Connecticut Subject to sales tax. Page 13 of IP-2018(5) Delaware No sales tax. N/A Florida Not subject to sales tax if the shipping charges are listed separately on the invoice. Sales Tax Rules 12A-1.045, FAQ from FL Dept. of Revenue Georgia Subject to sales tax. § 48-8-2(34)(A)(iv) Hawaii Subject to sales tax. § 237-3 Idaho Not subject to sales tax if the shipping charges are listed separately on the invoice. tax.idaho.gov (Retailers), § 63-3613(b)(7) Illinois Subject to sales tax. Nancy Kean vs Wal Mart Stores Inc., § 130.415(b)(1)(D)(ii) Indiana Subject to sales tax. § 6-2.5-1-5(a)(4) , Commissioner’s Directive #23 (top of Page 2 Iowa Not subject to sales tax if the shipping charges are listed separately on the invoice. tax.iowa.gov (Sales and Use Tax Guide) Kansas Subject to sales tax. Sales Tax and Compensating Use Tax (Page 15), § 79-3602(ll) . Admin Reg. 92019-46 Kentucky Not subject to sales tax if the shipping charges are listed separately on the invoice. Kentucky Sales Tax Facts (Page 2), KRS 139.010(15)(a)(4), KRS 139.210 Louisiana Not subject to sales tax if the shipping charges are listed separately on the invoice. RS 47:301(3)(a), Revenue Ruling No. 01- 007 Maine Not subject to sales tax if the shipping charges are listed separately on the invoice. Title 36, § 1752(14), Business Guide to Sales, Use, and Service Provider Tax
Maryland Not subject to sales tax if the shipping charges are listed separately on the invoice. Massachusetts Not subject to sales tax if the shipping charges are listed separately on the invoice. Michigan Subject to sales tax. § 205.51(1)(d), Dept. of Treasury (Sales and Use Tax FAQs) Minnesota Subject to sales tax. § 297A.61(7)(a), Sales Tax Fact Sheet 155 Mississippi Subject to sales tax. Dept. of Revenue FAQs, Mississippi State Tax Commission Part IV Sales and Use Tax (Pages 16-17) Missouri Not subject to sales tax if the shipping charges are listed separately on the invoice. Senate Bill No. 16 Montana No sales tax. N/A
Nebraska Subject to sales tax. § 77-2701.35, Nebraska Sales and Use Tax Guide on Delivery Charges, Nebraska Sales and Use Tax FAQs Nevada Not subject to sales tax if the shipping charges are listed separately on the invoice. NAC 372.101, NRS 360B.480, NRS 360B.290(2), Tax Bulletin SUT 15-0002 New Hampshire No sales tax. N/A New Jersey Subject to sales tax. Publication ANJ-10, Notice: Sales and Use Tax Rate Change, Bulletin S&U-4, § 54:32B-2(oo)(1), Admin. Code § 18:24-27.2 New Mexico Subject to sales tax if the Seller is making the payment to the carrier. In other words, shipping is almost always taxable. § 3.2.1.15 (Page 53) New York Subject to sales tax except for grocery food § 1101(a)(b)(3), § 1115(n)(3) North Carolina Subject to sales tax. § 105-164.3(203), Sales and Use Tax Bulletins (Page 83), North Carolina Dept. of Revenue FAQs North Dakota Subject to sales tax. § 57-39.2-01(7), § 81-04.1-01-10 (Page 6) Ohio Subject to sales tax. § 5739.01(H)(1)(a)(iv), § 5703-9-52 Oklahoma Subject to sales tax. § 710:65-19-70, 68, § 1352(12.a) Oregon No sales tax. N/A Pennsylvania Subject to sales tax. Rhode Island Subject to sales tax. South Carolina Subject to sales tax. § 117-310, Dept. of Revenue (FAQs) South Dakota Subject to sales tax. Rule 64:06:02:34, South Dakota Dept. of Revenue (Publication) Tennessee Subject to sales tax. § 67-6-102 , 1997 Letter Ruling #97-22, Dept. of Revenue FAQs, Texas Subject to sales tax. Sec. 151.007, Texas Comptroller FAQs Utah Not subject to sales tax if the shipping charges are listed separately on the invoice. § 59-12-102(103)(c)(ii), Tax Commission FAQs Vermont Subject to sales tax. § 9701(4)(A), Dept. of Taxes FAQs Virginia Not subject to sales tax if the shipping charges are listed separately on the invoice. Washington Subject to sales tax. § 82.08.807, WAC 458-20-110(3) West Virginia Subject to sales tax. § 11-15B-2(49)(A)(iv), § 110-15-89 (Page 142) Wisconsin Subject to sales tax. § 77.51(15b)(b)4, Dept. of Revenue FAQs Wyoming Not subject to sales tax if the shipping charges are listed separately on the invoice. § 39-15-105(a)(ii)(A), Dept. of Revenue (Freight and Transportation Charges) -
Can I Charge Late Fees?
Maximum Late Fee | Penalties
Below are the maximum penalties that can be charged if an invoice is not paid. Any late fees must be written in the invoice at the time of sending it to a client. The late fee is calculated by the total amount owed multiplied by the interest rate (%) on a per annum basis.
By Country (Top 50)
COUNTRY MAXIMUM PENALTY SOURCE USA 0%; however, most states implement a sales tax N/A Argentina No maximum rate N/A Australia 48% from interested collected plus other fees Consumer Credit Act in NSW and ACT Bangladesh 6% Trading Economics Belgium No maximum rate N/A Brazil 6.5% Banco Central Do Brasil Bulgaria No maximum rate N/A Canada 60% § 347 of the Criminal Code Chile 36% Science Direct China 36% Bloomberg Colombia 33% Borradores de Economia Dominican Republic No maximum rate Latin Lawyer Finland 7 percentage points higher than the interest rate applied by the European Central Bank Finland Interest Act (633/1982) France An annual rate higher than 1/3 the average percentage rate applied by credit institutions is usury French Consumer Code Article L313-3 Germany 5 percentage points above the basic rate of interest (currently 3.62%) Section 288(1) of German Civil Code Greece 2 percentage points above the maximum contractual interest rate. E-Justice Hong Kong 60% Hong Kong Legistlation Cap. 163, Section 24(1) Hungary No maximum rate N/A India At such rate as the Court deems reasonable India Code Usury Laws Repeal Act, 1855, Section 2 Ireland 187% to 287% Consumer Credit Act Israel 13% per annum, 17% per annum on arrear interest Banking Regulation in Israel: Prudential Regulation versus Consumer Protection Italy 25% plus 400 basis points (or exceed average market rate by 800 basis points) Lexology Jamaica 6% Money Lending Act Kenya No maximum rate N/A Malaysia 12% for secured loan, 18% for an unsecured loan Moneylenders’ Act 1951, Section 17A Mexico No maximum rate N/A Morocco No maximum rate N/A Netherlands No maximum, except on consumer credit loans Practical Law New Zealand No maximum rate Commerce Commission New Zealand Nigeria 48% Practical Law Norway No maximum rate N/A Pakistan Interest not permitted under Pakistani laws for domestic lending Practical Law Panama No maximum rate N/A Peru No maximum rate N/A Philippines No maximum rate N/A Poland 4 times the pawn loan rate of the National Bank of Poland Polish Civil Code Article 359(2¹) Portugal 7% or 9% (depending on in rem guarantee) Law and Practice Portugal, Section 4.3 ( Full PDF) Puerto Rico (USA) 6% Financing USA Russia Cannot exceed more than twice usual applicable rate Civil Code Chapter 42, Section 1, Article 809(5) Saudi Arabia No maximum rate N/A Singapore 4% per month Singapore Ministry of Law South Africa 10% National Credit Act, Chapter 5, Part C (105) Spain No maximum rate N/A Sri Lanka 20%, 18%, or 15% Sri Lanka Money Lending Ordinance Section 4(2) Sweden No maximum rate N/A Switzerland 10% or 12% Swiss Credit Consumer Act, Section 3 Thailand 15% Thai Civil and Commercial Code Book 3, Chapter II, Section 654 (Full PDF) Ukraine No maximum rate N/A United Kingdom No maximum for payday loans Credit Unions Act 1979 Vietnam 20% Vietnamese Civil Code, Chapter XVI, Section 4, Article 478(1) (Full PDF) Zimbabwe Not specifically defined Moneylending and Rates of Interest Act, Chapter 14:14, Section 8 (Full PDF) Usury Rates by State
State
USURY RATE SOURCE Alabama 6% maximum for verbal agreements, 8% for written agreements. § 8-8-1 Alaska Cannot exceed 10% or 5 percentage points above Federal Reserve interest rate; 10.5% if loan is more than $25,000. § 45.45.010 Arizona 10% unless agreed upon in a written contract. § 44-1201 Arkansas May not exceed the applicable rate of interest (17%) set forth in Section 3 of the Arkansas Constitution, Amendment 89 . § 4-57-104 California 7% for money, goods, or things in action; 10% for money, goods, or things in action for personal, family, or household purposes; or the greater of 10% or 5% + the prevailing rate established by the Federal Reserve Bank of San Francisco for any other use. Article XV Colorado Maximum is 45% per annum. If no written agreement exists, interest rate may not exceed 8%. § 5-12-103 Connecticut Interest rate may not exceed 12%. § 37-4 Delaware Maximum rate of interest is 5% over the Federal Reserve discount rate. No limitations on interest rates for loans exceeding $100,000. § 2301 Florida 18% unless loan exceeds $500,000, in which case the rate of interest can be 25% (in accordance with § 687.071(2)) § 687.03 Georgia Maximum interest rate is 7% if no written contract exists; 16% on loans of $3000 or less; and any rate of interest may be established by parties to a written contract for loans of $250,000 or more. § 7-4-2 Hawaii 10% without a written contract; 12% for consumer credit transactions; and 10% on judgments recovered in any civil suit. § 478-2, § 478-3, and § 478-4 Idaho Maximum of 12% if no contract exists. 5% plus base rate on money due on judgments. § 28-22-104 Illinois 5% without a written contract, 9% maximum if agreed upon by parties to a written agreement. 815 ILCS 205/4 and 815 ILCS 205/1 Indiana Interest rate may not exceed 8%. Consumer loans may be charged a maximum of 25%. § 24-4.6-1-102 and § 24-4.5-3-201 Iowa 5% with no written contract; for written agreements, 2 percentage points above the monthly average 10-year constant maturity interest rate of US government notes and bonds. § 535.2(1) and (3)(a) Kansas 10% maximum if no other interest rate was agreed upon. Bonds, bills, promissory notes, or other written instruments may stipulate a maximum of 15%. § 16-201 and § 16-207 Kentucky Legal rate of interest is 8%. If a written agreement exists, the rate may be increased to 4% in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank OR 19%, whichever is less, on loans of $15,000 or less. Any rate is permitted for loans in excess of $15,000. § 360.010 Louisiana Maximum interest rate is 12% per annum. § 9:3500(C)(1) Maine Without a written contract, maximum interest rate is 6%. Maximum rates for consumer credit sales are 30% for first $1,000, 21% between $1,000 and $2,800, 15% for more than $2,800, and 18% on all unpaid balances. 9-B § 432 and 9-A § 2-201 Maryland Maximum is 6% unless a written agreement is established, in which case interest rate can be up to 8%. § 12-102 and § 12-103 Massachusetts 6% maximum interest rate with no written agreement. Charging more than 20% interest is considered criminal usury. Ch. 107 § 3 and Ch. 271 § 49 Michigan 5% if no written agreement exists, 7% if an agreement is made between the parties in writing. § 438.31 Minnesota Interest rate is 6%, unless a different rate is agreed upon in writing. Interset rate may not exceed 8%. § 334.01 Mississippi Maximum interest rate is 8% per annum. “Contract rate” may not exceed the greater of 10% or 5% above the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank. § 75-17-1 Missouri Rate of interest may not exceed 10% if a written instrument exists, unless the “market rate” is higher. § 408.030 Montana Interest rate is 10% per annum. Parties may agree in writing to a maximum interest rate of 15% OR 6 percentage points above prime rate established by Federal Reserve System, whichever is greater. § 31-1-106 and § 31-1-107 Nebraska Maximum interest rate is 16%. § 45-101.03 Nevada Parties may agree in writing to any interest rate. Without a written agreement, the rate shall not exceed the prime rate at the largest bank in Nevada. § 99.040 New Hampshire Maximum rate of interest is 10% § 336:1 New Jersey Maximum rate of interest is 6% without a contract. Maximum rate of interest with a written contract is 16%. § 31:1-1 New Mexico Rate of interest shall not exceed 15% without a written contract. § 56-8-3 New York Interest rate is 6% per annum unless a different rate is prescribed in NY CLS Banking, in which case legal interest rate is 16%. Gen. Oblig. § 5-501 and Banking § 14-A North Carolina Legal rate of interest is 8%. § 24-1 North Dakota Maximum interest rate is 6%. Maximum contract rate is 5.5% higher than current cost of money but no less than 7%. § 47-14-05 + 09 Ohio Written contracts may not stipulate a rate of interest exceeding 8%. § 1343.01 Oklahoma Parties may agree to any rate permitted by state law; otherwise, 6% is the maximum rate without a written contract. § 15-266 Oregon Maximum interest rate is 9%. § 82.010(1) + (3) Pennsylvania Maximum interest rate is 6% for loans of $50,000 or less. 41 P.S. § 201 Rhode Island Interest rate may not exceed the greater of 21% or the alternate rate of 9 percentage points plus the domestic prime rate. § 6-26-2 South Carolina Legal rate of interest is 8.75%. § 34-31-20 South Dakota 12% where no contract exists; no interest rate limit if parties agree in writing. § 54-3-4 and § 54-3-16(3) Tennessee Unless the parties agree in writing, the maximum interest rate is 10%. § 47-14-103 Texas Unless the parties agree in writing, the maximum interest rate is 10%. § 302.001(b) Utah Unless the parties agree in writing, the maximum interest rate is 10%. § 15-1-1 Vermont Maximum rate of interest is 12%. 9 V.S.A. § 41a Virginia Legal rate of interest is 6%. If parties agree in writing, the interest rate may be a maximum of 12%. § 6.2-301 and § 6.2-303 Washington Rate of interest may not exceed 12% OR 4 percentage points above the equivalent coupon yield of the average bill rate for 26-week treasury bills. § 19.52.020 West Virginia Parties may agree to a maximum interest rate of 8%; otherwise, the legal interest rate is 6%. § 47-6-5 Wisconsin Legal interest rate is 5%. § 138.04 Wyoming Maximum interest rate is 7% if no agreement exists. § 40-14-106