How to Invoice in the USA: Sales Tax, 1099s, and What to Include
Invoicing in the United States is simpler than in most countries in one big way and more confusing in another. The simple part: there is no federal VAT or GST, so there is no national tax you have to add to every invoice. The confusing part: sales tax is set at the state level, with different rates, different rules, and different views on whether services are taxable at all. Add the 1099 system on top, and a lot of American freelancers are unsure what belongs on their invoice.
This guide covers how to invoice in the USA: what a US invoice must include, when to charge sales tax, EIN versus SSN, how 1099s work alongside invoices, and a sample US invoice you can copy.
What a US invoice must include
There is no federal law dictating a US invoice's fields the way HMRC or the ATO does. But if you want to get paid quickly and keep clean records, include:
- Your name or business name, address, and contact details
- Your EIN (or SSN if you are a sole proprietor without one)
- The client's name and address
- A unique invoice number and the invoice date
- A clear due date and payment terms (Net 30 is common in the US)
- An itemised description of the goods or services, with quantities and rates
- The subtotal, any sales tax, and the total due
- Payment instructions (bank/ACH details, check payable to, or a payment link)
The lack of a legal template does not mean anything goes. A business client's accounts payable team still expects a clean, numbered, itemised invoice. For the full anatomy, see our invoice format and layout guide.
Sales tax: it depends on your state
There is no national sales tax. Instead, each state (and often each county and city) sets its own. What matters is whether you have nexus in a state, meaning a physical or economic connection that obliges you to collect its sales tax.
| Question | The short answer |
|---|---|
| Is there a federal sales tax? | No |
| Who sets the rate? | States, counties, and cities |
| When must I collect it? | If I have nexus in that state and sell taxable items |
| Are services taxable? | Often not, but it varies by state |
| Are goods taxable? | Usually yes, where you have nexus |
The key point for most freelancers: many states do not tax professional services (design, consulting, writing, development). If you sell only services, you may have nothing to collect. But some states do tax certain services, and rules change, so check your own state and register before you collect anything. Charging sales tax you are not registered to collect is a serious error, as covered in our common invoice mistakes guide. For the mechanics once you do have to charge it, see our how to add tax to an invoice guide.
EIN or SSN on your invoice?
If you are a sole proprietor, you can technically use your Social Security Number, but you should not put it on invoices you email around. Get an EIN (Employer Identification Number) from the IRS instead. It is free, takes minutes, and lets you keep your SSN private while still giving clients the tax ID they need.
Your client will typically ask you to complete a W-9 form, which is where you formally provide your EIN or SSN. The invoice itself does not have to carry the number, but many businesses include it, and it speeds up onboarding with a new client.
1099s and invoices: how they fit together
This trips up a lot of new US freelancers, so here it is plainly: a 1099 does not replace your invoice.
- You send invoices during the year to request payment. That is how you get paid.
- Your client sends you a 1099-NEC in January if they paid you $600 or more during the year. It is their report to the IRS of what they paid you.
- You still report all your income, whether or not you received a 1099.
So the flow is: you invoice, they pay, they issue a 1099 summarising the year, and you file your taxes based on your own records. Your invoices are the foundation of those records, which is why numbering and keeping them matters, as our invoice numbering guide explains.
Sample US invoice
Here is a services invoice from a US freelancer with no sales tax to charge.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Website design and build | 1 | $2,400.00 | $2,400.00 |
| Content migration | 6 | $75.00 | $450.00 |
| Subtotal | $2,850.00 | ||
| Sales tax | $0.00 | ||
| Total due (Net 30) | $2,850.00 |
Clean, numbered, itemised, with terms. The sales tax line shows $0.00 because professional services are not taxable in this freelancer's state; in a state where they are, it would show the rate and amount.
Getting paid in the US
A few practical points that make a real difference:
- Net 30 is the default expectation for business clients, though Net 15 is increasingly common for smaller work. State your terms explicitly, as covered in our payment terms guide.
- The US has no statutory late-payment interest law like the UK's, so any late fee must be in your contract or on your invoice terms to be enforceable.
- ACH transfer is the standard for business payments; checks are still common with older or larger firms.
- Include a PO number if the client uses purchase orders, or your invoice may sit in a queue. See our purchase order vs invoice guide.
For the full US picture alongside the tool, see our USA invoice generator page. For other countries, see our UK and Australia pages.
Common US invoice mistakes
- Charging sales tax you are not registered to collect.
- Putting your SSN on invoices instead of getting an EIN.
- Assuming a 1099 replaces invoicing.
- No late fee in your terms, leaving you no recourse.
- Missing a PO number on a B2B invoice that needs one.
Make a US invoice in 60 seconds
You do not need accounting software to invoice professionally in the US. Invoicara's free invoice generator lets you itemise your work, add sales tax only if you need to, set Net 30 terms, number invoices cleanly, and export a professional PDF. No sign-up, no watermark, free forever.
For the basics, see our complete guide on how to make an invoice and our freelance invoice template guide. Get an EIN, check whether your state taxes what you sell, state clear terms, and keep every invoice, and invoicing in the USA is genuinely straightforward.