Sample Invoice and Payment Terms
Invoice number: 1001. Invoice date: 1 March 2026. Due date: 31 March 2026.
Supplier: Test Ltd, 2 Test Avenue. VAT number: XX000000000.
Customer: Example Corp, 1 Example Street. Purchase order: PO-2026-0042.
Line items
• Widget A, quantity 4, unit price 30.00 EUR, line total 120.00 EUR
• Widget B, quantity 1, unit price 45.50 EUR, line total 45.50 EUR
• Delivery and handling, line total 12.00 EUR
Net total: 177.50 EUR. VAT at 20 percent: 35.50 EUR. Amount due: 213.00 EUR.
How to read this invoice
Each line shows the description, quantity, unit price and line total, exclusive of tax. Taxes are
calculated on the net total and shown separately so that the taxable base can be reconciled
against the purchase order. The amount due is the gross figure payable by the due date. Where
a purchase order number is shown, quote it in all correspondence so that the payment can be
matched automatically.
Payment terms
• Standard terms are net thirty (30) days from the invoice date.
• Payment should be made by bank transfer in the invoice currency. Bank charges levied by
the payer's bank are borne by the payer.
• Quote the invoice number as the payment reference. Payments received without a reference
may be held as unapplied cash until identified.
• Partial payments are applied to the oldest outstanding invoice first unless the payer specifies
otherwise in writing.
Late payment
Undisputed amounts outstanding after the due date may attract interest at the statutory rate
applicable to commercial transactions, calculated daily from the day after the due date until
payment is received in full. Where permitted, a fixed recovery cost may also be charged.
Reminders are typically issued at seven, fourteen and thirty days past due, followed by
escalation to the account owner. Accounts more than sixty days past due may be placed on hold,
suspending further deliveries until the balance is cleared.
Disputes and queries
Queries should be raised within fifteen (15) days of receiving the invoice and should identify the
invoice number, the disputed line and the reason for the dispute. The undisputed portion remains
payable by the original due date. Once a query is logged, an acknowledgement is issued within
two Business Days and a resolution target of ten Business Days applies. If a dispute is upheld, a
credit note is issued referencing the original invoice; if it is rejected, a written explanation is
provided.
Credit notes and refunds
Credit notes are issued against a specific invoice and reduce the outstanding balance. Where
Sample Invoice and Payment Terms | Page 1 of 2
the invoice has already been paid in full, the credit may be applied to the next invoice or
refunded to the originating bank account within fifteen (15) Business Days, at the customer's
election. Refunds are made only to the account from which payment was received.
Tax notes
Value added tax is charged at the rate in force on the date of supply. Customers who are
registered for tax in another jurisdiction and eligible for a reverse charge should supply a valid
registration number before the invoice is issued; retrospective adjustments require a credit note
and re-issue. Withholding tax deducted at source must be supported by a tax certificate,
otherwise the gross amount remains due.
Record keeping
Both parties should retain invoices, credit notes and remittance advice for the period required by
local law, commonly between six and ten years. Electronic copies are acceptable where their
integrity and legibility are preserved.
About this document
This is a sample template provided for reference and testing purposes. It is not legal, financial or
tax advice, and it has not been reviewed for any specific jurisdiction. Adapt the wording to your
own circumstances and have a qualified professional review it before use.
Sample Invoice and Payment Terms | Page 2 of 2