A standard invoice is the most commonly used billing document in everyday business transactions. It is issued after goods or services have been delivered and serves as a formal request for payment. Despite its simplicity, using a standard invoice incorrectly can lead to delayed payments, accounting inconsistencies, or rejected documents.
This page explains what a standard invoice is, when it should be used, who can issue it, and how it differs from other invoice types.
What Is a Standard Invoice?
A standard invoice documents a completed transaction between a seller and a buyer. It confirms that goods or services have been provided and specifies the amount due, along with payment terms.
Unlike tax-specific invoices, a standard invoice does not include separate tax calculations such as VAT or GST. It is typically used when no additional tax reporting requirements apply or when taxes are not charged.
When a Standard Invoice Should Be Used
- When goods or services have already been delivered
- For domestic business transactions with straightforward pricing
- When the seller is not required to charge VAT or similar taxes
- For routine billing between businesses or individuals
When a Standard Invoice Is NOT Suitable
- If VAT, GST, or sales tax must be shown separately
- If payment is requested before delivery (use a proforma invoice instead)
- For transactions requiring tax-compliant invoice formats
- When local regulations mandate a specific invoice type
Who Can Issue a Standard Invoice
A standard invoice may be issued by:
- Registered businesses and companies
- Freelancers and self-employed individuals
- Small businesses that are not VAT-registered
The issuer must have the legal right to sell the goods or services and must provide accurate identifying information on the invoice.
Information a Standard Invoice Must Include
- A unique invoice number
- Invoice issue date
- Seller’s name and contact details
- Buyer’s name and contact details
- Description of goods or services provided
- Total amount due
- Payment terms and due date
Common Mistakes When Using a Standard Invoice
- Using duplicate or inconsistent invoice numbers
- Omitting the payment due date
- Providing vague descriptions of services
- Issuing an invoice before delivery is completed
These issues often result in payment delays or disputes with accounting departments.
Standard Invoice Formats
Standard invoices can be prepared in different file formats depending on how they will be used. Choose the format that best matches your workflow.
- Standard Invoice PDF – ready to send and archive
- Standard Invoice Word (DOCX) – editable format
- Standard Invoice Excel (XLSX) – automatic calculations
When a Generator Is a Better Option
A standard invoice template is suitable for occasional invoicing and simple billing needs. However, if you issue invoices regularly, need automatic totals, or want to reduce the risk of manual errors, an online invoice generator may be a more practical solution.
Frequently Asked Questions
Is a standard invoice legally valid?
Yes. A standard invoice is legally valid in most jurisdictions as long as it contains all mandatory information and accurately reflects the transaction.
Can I use a standard invoice instead of a VAT invoice?
Only if VAT or similar taxes are not required for the transaction. If tax must be charged, a VAT or GST invoice should be used instead.
Can individuals issue standard invoices?
Yes. Freelancers and self-employed individuals may issue standard invoices if permitted by local regulations and tax rules.