Boost Your Earnings: A Step-by-Step Guide to Creating an Invoice Template with VAT-Free Payments for Freelancers and Service Professionals
Discover how to create a professional invoice template that includes VAT-free payments, contracts, and automatic reminders to get paid faster and grow your business.
As a freelancer or service professional, you've probably experienced the frustration of waiting for payment from a client who has already received your services. You send a polite reminder, but the client brushes it off, saying they're waiting for their accountant to sort out the VAT. Meanwhile, you're left wondering when you'll get paid. This post will show you how to create an invoice template that includes VAT-free payments, making it easier for clients to pay you on time.
Why this keeps happening
The problem lies in the lack of clear communication and unclear payment terms. Without a clear understanding of VAT and payment schedules, clients can stall on payment, leaving you to chase them down. Additionally, traditional invoicing systems can be clunky and time-consuming, making it difficult to keep track of payments and VAT.
Real example
Take Sarah, a freelance writer who recently completed a project for a client. She sent a traditional invoice, but the client got stuck on the VAT and delayed payment. Sarah had to spend hours chasing the client for payment, which could have been avoided if she had created a VAT-free invoice template.
The habits that fix this permanently
These are the non-negotiables for getting paid reliably in your profession:
How to implement this step by step
Step 1: Set Clear Payment Terms
When creating your invoice template, make sure to clearly outline the payment terms, including VAT-free payment options. This will help clients understand their responsibilities and avoid delays. For example, if you're working with a client who is VAT-registered, you can include a note on the invoice stating that VAT will be charged separately. This way, clients know exactly what to expect and can plan accordingly.
Step 2: Create a VAT-Exclusive Payment Link
Use a VAT-exclusive payment link to simplify the payment process for clients. This link will automatically calculate the VAT, making it easier for clients to pay the correct amount. For instance, if you're using Becflow, you can create a payment link with a specific VAT rate, and clients will be able to pay the correct amount directly from the invoice.
Step 3: Create a Contract that Outlines Payment Terms
Develop a contract that outlines payment terms and VAT responsibilities. This will help clarify any misunderstandings and ensure clients understand their obligations. For example, you can include a clause stating that payment is due within 14 days of receipt of the invoice, and that VAT will be charged separately.
Step 4: Set Clear Payment Schedules and Deadlines
Establish clear payment schedules and deadlines to avoid delays. This can be done by including a payment schedule on the invoice, outlining when payments are due. For instance, if you're working on a project that spans several months, you can include a payment schedule that shows when payments are due for each milestone.
Step 5: Automate Payment Reminders
Automate payment reminders to avoid delays. This can be done by setting up automatic reminders using Becflow's payment reminder feature. For example, you can set up a reminder to send a payment request to clients 7 days before payment is due, and another reminder 14 days after payment is due if payment has not been received.
The Becflow solution
Becflow's all-in-one invoicing and payment solution makes it easy to create VAT-free invoices, contracts, and payment links. With our automated payment reminders and payment tracking features, you can get paid faster and grow your business with confidence. Try Becflow today and start boosting your earnings!
Get paid faster, automatically
AI contracts, invoices with payment links, and automatic reminders. All in one place. Free for 7 days.
Start free trial