B2B Invoice Example (Annotated)
A US-style invoice from one business to another. The numbered markers match the notes below the sample. Names, numbers and amounts are placeholders for illustration.
100 Main Street, Springfield, ST 00000
Tax ID (EIN): XX-XXXXXXX
Buyer Company, Inc. — Accounts Payable
200 Commerce Road, Rivertown, ST 00000 · [email protected]
| Description | Qty | Unit price | Amount |
|---|---|---|---|
| Managed IT support — September 2026 (PO line 1) | 1 | $2,400.00 | $2,400.00 |
| Laptop docking station, model DS-200 (PO line 2) | 20 | $185.00 | $3,700.00 |
Terms: Net 30 — due October 1, 2026
Pay by bank transfer (ACH): Example Bank, routing no. XXXXXXXXX, account no. XXXXXXXX. Please quote INV-1042.
- Subtotal
- $6,100.00
- Sales tax (rate × taxable amount)
- —
- Total due
- $6,100.00
- Supplier legal name, address and tax ID. The name the buyer has in its vendor records, so the payment goes to the right supplier.
- Customer legal entity and AP address. The entity named on the purchase order or contract, addressed to its accounts-payable team or invoice mailbox.
- Invoice number. Unique and sequential, so AP can log it and spot duplicates.
- Issue date. The date payment terms are counted from, unless your contract says otherwise.
- PO number. Copied exactly from the buyer’s purchase order, when the buyer issued one.
- Line items that mirror the PO. Same descriptions, quantities and unit prices as the PO lines, so they can be matched.
- Subtotal, tax and total. Tax shown separately. Whether US sales tax applies depends on the state and the item; when it does, it is rate × taxable amount.
- Payment terms with an exact due date. “Net 30 — due October 1, 2026” leaves nothing to calculate.
- Remittance details. How to pay: bank transfer details and the reference to quote.
UK / EU variant: what changes
- Your VAT registration number next to your name and address, and the customer's VAT number where the customer accounts for the VAT or receives an intra-EU supply of goods — see the tax section.
- VAT rate and VAT amount on the invoice — for a UK sale at the standard rate, 20% (GOV.UK / HMRC), with the VAT total in sterling.
- The mention “Reverse charge” instead of charging VAT where the customer is liable for it — the rule is quoted in the tax section, and the reverse charge calculator works out who accounts for the VAT.
To produce this version, use the VAT invoice generator: it prints your VAT registration number and your customer's, and can add a reverse-charge note.
B2B Invoice Format: The Fields Buyers Check
One list of the fields a business buyer's accounts-payable team looks for, why they need each one, and — where one exists — the legal basis for a VAT invoice in the EU (Directive 2006/112/EC, Art. 226) and the UK (VAT Notice 700, section 16.3.1). In GST countries such as Australia, the B2B document is called a tax invoice; those rules follow the table.
| Field | Why the buyer's AP needs it | EU VAT Directive | UK VAT Notice 700 |
|---|---|---|---|
| Invoice number | Logs the invoice and catches duplicates. | Art. 226(2): “a sequential number, based on one or more series, which uniquely identifies the invoice” | “a sequential number based on one or more series which uniquely identifies the document” |
| Issue date | Starts the payment-terms clock. | Art. 226(1): “the date of issue” | “the date of issue of the document (where different to the time of supply)” |
| Date of supply (tax point) | Places the cost in the right period. | Art. 226(7): the date the supply “was made or completed”, where it “differs from the date of issue” | “the time of the supply (tax point)” |
| Supplier name, address and VAT/tax number | Matches you to the vendor record the buyer pays. | Art. 226(3) and (5): the supplier’s VAT identification number; “the full name and address of the taxable person and of the customer” | “your name, address and VAT registration number” |
| Customer legal entity and address (AP) | Routes the invoice to the entity that owes the money. | Art. 226(5), as above | “the name and address of the person to whom the goods or services have been supplied (your customer)” |
| Customer VAT number | Needed where the customer accounts for the VAT (reverse charge) or receives an intra-EU supply of goods. | Art. 226(4): where the customer is liable for the VAT, or for an intra-EU supply of goods under Art. 138 | — |
| PO number | The key AP uses to match the invoice to the order. | No VAT rule — the buyer’s requirement when it issued a PO | — |
| Description and quantity per line | Compared line by line with the PO and the delivery record. | Art. 226(6): “the quantity and nature of the goods supplied or the extent and nature of the services rendered” | “a description sufficient to identify the goods or services supplied” |
| Unit price and discounts | Checked against the PO price. | Art. 226(8): “the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit price” | “the unit price”; “the rate of any cash discount offered” |
| Tax rate, tax amount and total | Lets the buyer book (and, for VAT, reclaim) the tax. | Art. 226(8)–(10): “the VAT rate applied”; “the VAT amount payable” | “the total amount of VAT chargeable — this must be expressed in sterling” |
| “Reverse charge” or exemption reference | Tells the buyer it accounts for the VAT, or why none is charged. | Art. 226(11a): “where the customer is liable for the payment of the VAT, the mention ‘Reverse charge’”; Art. 226(11): a reference to the exemption | — |
| Payment terms and due date | Schedules the payment run. | No EU/UK VAT rule | — |
| Remittance (bank) details | Lets AP pay without asking. | No EU/UK VAT rule | — |
EU quotes: consolidated Directive 2006/112/EC (EUR-Lex, consolidation of 14.04.2025). UK quotes: VAT Notice 700, paragraph 16.3.1. Retrieved September 25, 2026. For a US sale these VAT rules do not apply; the buyer's PO terms and any state sales-tax rules decide what else is needed.
GST countries: the tax invoice
| Country | What the rule says | Source |
|---|---|---|
| Australia | “If you’re registered for GST, the invoice you issue to a customer must be a tax invoice.” It shows “the words ‘tax invoice’” and “your Australian Business Number (ABN)”, and “You must also include the buyer’s identity or ABN on invoices for sales over $1000.” | business.gov.au |
| Canada | For the buyer to claim input tax credits, invoices of $100 or more must show the supplier’s GST/HST registration number; from $500, also “the recipient’s name”, “the terms of payment” and “a description of each supply sufficient to identify it”. | SOR/91-45, s. 3 |
Other GST and VAT jurisdictions are covered in our VAT/GST invoicing guide.
Free B2B Invoice Template
The corporate invoice template is our B2B template: a PO number in the header, a bill-to block addressed to the company and its accounts-payable department, a department / approver line, and Subtotal, Tax and Total due.
Field-by-field details are on the corporate invoice template page. Both files print one plain-text footer line: “Free template by myinvoicetemplate.com — fill it in online and download a finished PDF at myinvoicetemplate.com/tools/corporate-invoice-generator/”. You can delete it in the Word file; in the PDF it is fixed. Prefer a finished PDF? The corporate invoice generator prints the PO number, project code and client tax ID when you fill them in.
B2B vs B2C Invoicing: What Changes
The core of an invoice is the same. What changes when the customer is a business is who approves it, when it is paid and which tax paperwork comes with it.
| Point | Selling to consumers (B2C) | Selling to businesses (B2B) |
|---|---|---|
| Who you bill | A person | A legal entity, usually through its accounts-payable department |
| What starts the sale | A checkout or an order | Often a purchase order, whose number goes on the invoice |
| Approval | Usually paid at purchase or on receipt | AP checks the invoice against the PO and the delivery record (3-way matching) |
| When it is paid | At checkout or on receipt | On agreed terms, such as Net 30 |
| US sales tax on goods bought for resale | Collected where the sale is taxable | The buyer may give you a resale or exemption certificate (see below) |
| VAT (UK/EU) | VAT included in the price | VAT invoice with VAT numbers; sometimes “Reverse charge” — see the tax section |
Resale and exemption certificates (US). When a business buys goods to resell them, it can document that with an exemption certificate instead of paying sales tax. In the states that belong to the Streamlined Sales Tax agreement: “The Streamlined Sales Tax® Exemption Certificate and instructions are accepted by all 24 Streamlined member states.” “Purchasers should provide the completed exemption certificate to their supplier and keep a copy for their records.” And for the seller: “If the seller's customer provides an exemption certificate to the seller for a sale sourced to a Streamlined Member state, the seller should not collect sales or use tax on that transaction.” (Streamlined Sales Tax Governing Board). Other states use their own forms — check the state Department of Revenue.
The 3-Way Matching Process
3-way matching is an accounts-payable control that compares three documents before a payment is approved: the purchase order, the record that the goods or services were received, and your invoice. It helps the buyer catch billing errors and duplicate or unauthorized payments.
Purchase Order (PO)
Authorization to buy - issued by buyer
Goods Receipt Note (GRN)
Proof of delivery - recorded by the buyer
Invoice
Payment request - issued by supplier
Payment Approved
When the numbers do not match exactly
Each buyer sets its own tolerance for small price or quantity differences, and its own rule for what happens above it (usually a review before approval). If you know your invoice will differ from the PO — a price change, a partial delivery — tell the buyer before you send it, or ask for the PO to be updated.
B2B Tax Invoice: The VAT/GST Details Your Business Customer Needs
United Kingdom: the VAT invoice
HMRC's VAT Notice 700 (section 16) sets the duty and the content:
“Whenever you supply standard-rated or reduced-rated goods or services to another VAT-registered person, you must give that person a VAT invoice.”
“You must issue a VAT invoice to a registered person unless:
- your customer operates self-billing arrangements (read Self billing (VAT Notice 700/62)) or you issue authenticated receipts (read paragraph 17.4)
- you make a gift of goods on which VAT is due (read Business promotions (VAT Notice 700/7))”
The details a UK VAT invoice must show (VAT Notice 700, 16.3.1)
“You must show the following details on any VAT invoice you issue:
- a sequential number based on one or more series which uniquely identifies the document
- the time of the supply (tax point)
- the date of issue of the document (where different to the time of supply)
- your name, address and VAT registration number — you may issue invoices under a trading name, but you must show the name and address under which you’re registered for VAT somewhere on the document
- the name and address of the person to whom the goods or services have been supplied (your customer)
- a description sufficient to identify the goods or services supplied
- for each description, the quantity of the goods or the extent of the services, the rate of VAT, and the amount payable excluding VAT — this can be expressed in any currency
- the gross total amount payable, excluding VAT — this can be expressed in any currency
- the rate of any cash discount offered
- the total amount of VAT chargeable — this must be expressed in sterling
- the unit price (read paragraph 16.3.2)”
European Union: the VAT Directive
Under Council Directive 2006/112/EC (consolidated text of 14.04.2025), Art. 220(1): “Every taxable person shall ensure that, in respect of the following, an invoice is issued … (1) supplies of goods or services which he has made to another taxable person or to a non-taxable legal person”. For B2B invoices, Art. 226 then requires, among other details:
- Your VAT number — Art. 226(3): “the VAT identification number referred to in Article 214 under which the taxable person supplied the goods or services”.
- The customer's VAT number — Art. 226(4): “the customer's VAT identification number, as referred to in Article 214, under which the customer received a supply of goods or services in respect of which he is liable for payment of VAT, or received a supply of goods as referred to in Article 138”.
- “Reverse charge” — Art. 226(11a): “where the customer is liable for the payment of the VAT, the mention ‘Reverse charge’”.
- An exemption reference — Art. 226(11): “in the case of an exemption, reference to the applicable provision of this Directive, or to the corresponding national provision, or any other reference indicating that the supply of goods or services is exempt”.
The VAT invoice generator prints both parties' VAT registration numbers and can add a reverse-charge note; the reverse charge calculator helps you work out whether the customer accounts for the VAT. Other GST jurisdictions are covered in the VAT/GST invoicing guide, and cross-border billing in the international invoicing guide.
E-invoicing: some jurisdictions require B2B invoices as structured e-invoices, which a PDF does not replace. Among the jurisdictions tracked on our e-invoicing mandates page (reviewed August 20, 2026): the United States has no federal e-invoicing mandate; the UK has announced mandatory e-invoicing for B2B and B2G VAT invoices from 2029; German businesses must be able to receive e-invoices from other German businesses since January 1, 2025, and the general obligation to issue them applies from January 1, 2027; India requires GST e-invoices through its Invoice Registration Portal from businesses above its turnover threshold (the current threshold has applied since August 1, 2023). Check the tracker for the country you bill into before you rely on a PDF.
B2B Payment Terms Explained
Unlike consumer transactions with immediate payment, B2B invoices use standardized payment terms that define when payment is due.
Early Payment Discounts
Many suppliers offer discounts for early payment. The format 2/10 Net 30 means: "Take 2% discount if paid within 10 days, otherwise full amount due in 30 days." For cross-border B2B deals invoiced in another currency, see our multi-currency invoice generator.
Example: Invoice total $10,000 with 2/10 Net 30 terms
- Pay within 10 days: $9,800 (save $200)
- Pay within 30 days: $10,000 (full amount)
Work out the exact dates with the payment due date calculator, and what the discount is worth to each side with the early payment discount calculator.
For a complete guide to payment terms, see our Invoice Payment Terms Guide. If you provide professional services, our consulting billing best practices guide covers retainer-based and milestone payment structures.
Late Payment Interest: State Regimes for B2B Contracts
When a B2B invoice goes past due, two numbers control what you may charge. The state's legal (default) rate applies when the contract never mentioned interest. The maximum written rate is the ceiling — if any — that two businesses may agree to. That second number is where B2B billing differs sharply from consumer billing: many states either exempt commercial transactions from their usury caps or let businesses agree to any rate in writing, while others keep hard ceilings that bind even two corporations.
Based on a statute-by-statute review of all 50 states and the District of Columbia (last reviewed August 19, 2026), every US jurisdiction falls into one of three regimes. Each state name links to its own page, with the exact rates, the controlling statute and a calculator locked to that state. All states side by side: the 50-state late payment interest table.
No effective ceiling
26 jurisdictions
A written B2B contract can agree to any interest rate.
Arizona · Delaware · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Louisiana · Maine · Missouri · Nebraska · Nevada · New Hampshire · New Mexico · North Carolina · Ohio · Oregon · Pennsylvania · South Carolina · Utah · Vermont · Washington · West Virginia · Wisconsin · Wyoming
Conditional — carve-outs apply
12 jurisdictions
A cap exists, but qualifying commercial deals (size, entity type or structure) escape it.
Alabama · Alaska · California · Connecticut · District of Columbia · Georgia · Kentucky · Minnesota · Mississippi · North Dakota · South Dakota · Virginia
Hard cap even between businesses
13 jurisdictions
A numeric ceiling binds ordinary written B2B contracts.
Arkansas (17% (constitutional)) · Colorado (45%) · Florida (18%) · Maryland (6% (8% with signed agreement)) · Massachusetts (20% criminal (all-in)) · Michigan (25% criminal) · Montana (15% (floor)) · New Jersey (50% criminal (entity)) · New York (25% criminal (effective)) · Oklahoma (10% (constitutional)) · Rhode Island (21% (or prime+9%)) · Tennessee (formula rate (11.00% on Oct 6, 2026; max 24%)) · Texas (18% for Oct 5–11, 2026 (28% statutory max))
How the three regimes play out in practice
Delaware No ceiling
6 Del. C. § 2306 bars any corporation, limited partnership, statutory trust, business trust or LLC from interposing the defense of usury in any action, so an entity debtor has no usury argument to make. Separately, § 2301(c) removes any rate limitation where the amount loaned or used exceeds $100,000 and repayment is not secured by a mortgage against a borrower's principal residence — that exemption turns on amount and collateral only, not on entity type. Note that § 2306's list does not name individuals or general partnerships; the section itself contrasts entities having 'powers and privileges of corporations not possessed by individuals or partnerships', so a sole-proprietor customer is not covered by that bar. (6 Del. C. §§ 2301(c), 2306)
Texas Hard cap
Business/commercial credit is bound by the Ch. 303 ceiling: 26-week T-bill x2, floor 18%, max 24% — lifted to 28% only if the computed rate would exceed 24%. OCCC publishes an 18.00% weekly ceiling for Oct 5–11, 2026, so 18%/yr is the published B2B ceiling for that week. Even a 'qualified commercial loan' may not exceed the applicable ceiling. (Tex. Fin. Code §§ 303.002, 303.009(a),(c))
Arkansas Hard cap
Hard 17%/yr constitutional cap on all contracts; no business exemption. A clause above 17% makes the contract void as to BOTH principal and interest. (Ark. Const. amend. 89 §§ 3, 6)
Before you add an interest clause: open your state's page from the lists above (default rate, max written rate and statute link), then use the late fee calculator to turn the rate into a dollar amount. This section covers business-to-business invoices only — consumer credit follows separate, stricter rules in every state. Not legal advice: verify against the linked statute or ask a licensed attorney before charging.
B2B Billing Procedure, Step by Step
Five checks, in order, before a B2B invoice leaves your hands:
Check the PO
If the buyer issued a purchase order, confirm the PO number and that the amount you are billing fits within it.
Bill the right entity
Invoice the exact legal entity named on the PO or contract, at the accounts-payable address it gave you. Do not abbreviate (for example "Ltd." vs "Limited").
Mirror the order
Describe, count and price the line items the way the PO does, so they can be matched to the PO and the delivery record.
Apply the tax details
Add the tax your sale requires. On a UK or EU VAT invoice that includes the VAT numbers and, where the customer accounts for the VAT, the mention "Reverse charge".
Send it where AP asks
Send the invoice to the address or portal the buyer specified, as a text-based PDF unless the buyer or a mandate requires a structured e-invoice.
Pre-Send Checklist
- PO Reference: Present and copied exactly (if the buyer issued a PO)?
- Invoice ID: Unique and sequential?
- Tax details: Correct tax/VAT numbers, rate and any “Reverse charge” mention?
- Due date: An exact date, not only “Net 30”?
- Bank Details: Account details and beneficiary name exact?
- File Format: Text-selectable PDF (not scanned image), unless a structured e-invoice is required?
Frequently Asked Questions
What does B2B invoice mean?
B2B stands for business-to-business, so a B2B invoice is the invoice one business sends another for goods or services it supplied. It is processed by the buyer's accounts-payable team, it usually quotes the buyer's purchase order number when there is one, and it is paid on the terms the two businesses agreed (for example Net 30) rather than at checkout.
Do the same rules apply to Peppol or XML e-invoices?
The business content still has to line up: the PO reference, line items that match the order and the correct legal entities. But the file format is then set by the law or the network that requires it (for example Peppol BIS Billing 3.0 on the Peppol network), and a PDF is not one of those structured formats. Where a mandate or your customer requires a structured e-invoice, use software that produces the required format.
How are 'Blanket POs' processed differently?
A blanket PO usually covers repeated purchases up to an agreed amount or over an agreed period. Quote the blanket PO number and, if the buyer issues them, the release or call-off number for each delivery, and keep track of the remaining balance so an invoice does not take the PO over its limit.
What is the requirement for Cross-Border VAT?
Under the EU VAT Directive, when the customer is liable for the VAT the invoice must carry "the mention 'Reverse charge'" (Art. 226(11a)). An exempt intra-Community supply of goods needs a reference to the exemption instead (Art. 226(11)). In both cases the invoice shows the customer's VAT identification number (Art. 226(4)), as well as your own (Art. 226(3)).
Can two businesses agree to any late fee rate in a contract?
It depends on the state. In our statute-by-statute review (last reviewed August 19, 2026), 26 US jurisdictions have no effective ceiling on a rate two businesses agree in writing, 12 have a cap that qualifying commercial deals escape, and 13 keep a hard cap that binds even between businesses — for example Arkansas: 17% (constitutional). Each state's page on our late fee calculator shows its cap and the statute.
What interest applies if a B2B contract says nothing about late fees?
The state's legal (default) rate applies. For example: Texas, 6% — begins accruing on the 30th day after the amount is due when the contract specifies no rate; Pennsylvania, 6% — legal rate; on a fixed-sum debt it runs as of right from the date payment was due; New York, 9% — statutory prejudgment rate on contract debts (simple), from the earliest date the claim existed. Each state's page on our late fee calculator shows its default rate, how it accrues and the statute it comes from.
Legal Disclaimer
This document is provided for general informational and educational purposes only. It does not constitute legal, tax, financial, or accounting advice and should not be relied upon as such.
The information presented may not reflect the most current legal developments or requirements in your jurisdiction.
Invoicing requirements vary significantly based on local, national, and international laws.
Always consult with a qualified tax professional, CPA, or legal advisor before making business decisions based on this information.
MyInvoiceTemplate assumes no liability for any actions taken based on the content of this guide.
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