Invoice terms, explained.
Short, plain-English definitions of the invoicing and tax terms you actually meet — each linked to a deeper guide or a free tool where it helps.
BIC / SWIFT code
A code identifying a specific bank internationally, used alongside the IBAN.
Read the definition →Credit note
A document that cancels or reduces a previously issued invoice.
Read the definition →Deposit
A part-payment made before the work is complete, reducing the final balance due.
Read the definition →E-invoicing
Issuing invoices in a structured electronic format a system can process automatically — not just a PDF.
Read the definition →EIN
A US federal tax ID issued by the IRS to businesses, often shown on US invoices.
Read the definition →Estimate
A document proposing a price for work before it's carried out, for the client to approve.
Read the definition →IBAN
An international bank account number used to identify an account for cross-border transfers.
Read the definition →Invoice number
A unique, sequential reference on every invoice used to identify and track it.
Read the definition →Late payment interest
Interest a supplier can charge on overdue commercial invoices, often set by statute.
Read the definition →Net 30
A payment term meaning the full amount is due 30 days after the invoice date.
Read the definition →Net vs gross
“Net” is the amount before tax; “gross” is the amount including tax.
Read the definition →Payment terms
The conditions setting when and how an invoice should be paid.
Read the definition →Peppol
A standardised network for exchanging e-invoices and other documents between businesses and governments.
Read the definition →Proforma invoice
A preliminary bill sent before delivery that shows the expected price but isn't a demand for payment.
Read the definition →Purchase order
A document a buyer issues to authorise a purchase, which the seller then references on the invoice.
Read the definition →Recurring invoice
An invoice issued automatically on a set schedule for ongoing work or subscriptions.
Read the definition →Remittance advice
A note from a customer confirming which invoices a payment covers.
Read the definition →Retainer
A fee paid in advance to reserve your services, often on a recurring basis.
Read the definition →Reverse charge
A VAT rule where the customer, not the supplier, accounts for the VAT — common on cross-border B2B supplies.
Read the definition →Sales tax
A US consumption tax added at the point of sale, set by state and local government.
Read the definition →Statement of account
A summary of a customer's invoices, payments and outstanding balance over a period.
Read the definition →Subtotal
The total of all line items before tax, discounts or other adjustments.
Read the definition →VAT
A consumption tax charged as a percentage at each stage of the supply chain, common across Europe.
Read the definition →Go deeper with the invoicing guides, or make one now with the free invoice generator.
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