On this page you'll find guidance on
  • what invoices for art sales should contain,
  • what's different about invoices when exporting art out of the country
  • paper versus electronic invoices
  • how to use PayPal to raise an invoice
  • how to get paid!
The most important part of any commission is undoubtedly the invoice. Yet, the topic seems to be overlooked in most art educations.
Don de Santos

CHECK LIST: Invoicing and Payment Terms

An Invoice is a bill presented by a seller to a buyer.

It's a statement of what goods or services have been supplied and how much is now due in settlement of the transaction between seller and buyer. It tells your client or customer how much they now need to pay for what they have received (or are about to receive) and how to pay it. It's not a receipt.

​If you are a limited company, sole trader and/or VAT registered, the law requires you to provide certain information on any invoices you send to your customers. (see Invoicing and taking payment from customers)

​Payment against an invoice is a requirement of any business or corporate client. This is because their accounts people won't allow payments to be made without an invoice.

You MUST use VAT invoices if you and your customer are VAT registered.
Invoices should contain information about:
  • you the artist
  • your billing address
  • your client or customer
  • ​their taxable address
  • your UTR (tax. ref. code)
  • the tax date for the product or service rendered
  • description of the artwork provided or artistic service rendered
  • the sum due
  • statement of terms for payment

What to include in an invoice for an art sale

Information about you
  • the word 'Invoice' - All invoices should clearly state that this is what they are with the word "invoice".
  • your business name - this needs to be the legal name for your business. If you are a sole trader this can be your name.
  • your address and contact information. If you're not happy about providing details of your personal address you can use a registered postal address. However note that if you sell online the address you provide should be your real address.
  • a unique identification number - essentially this provides an audit trail (helps you keep track of who you have invoiced), helps you to keep all your billing in order and provides a point of reference for any correspondence. I always start my numbers with the calendar year (e.g. 2015, then use a code for the type of supply and then have a numeric code which runs in sequence)
  • UTR / Tax code - sometimes a service you provide requires a corporate client to ask for your "UTR" or unique tax reference (used in the UK for all those subject to self-assessment) . This may be called different things in different places but essentially it's the code which identifies who you are to the Tax people. Essentially corporate clients have to prove that you are an independent business / sole trader and not an employee from whom they should be deducting employment tax.

Information about the client
  • the client's name i.e. the name of the legal entity you need to pursue if they fail to pay
  • the client's address - to get payment you must be able to serve an invoice and hence you need a valid address. Google's Streetview is wonderful for checking out any you may have doubts about.
  • the client's contact details e.g. email address (essential if serving the invoice online) and/or telephone number
  • any reference number they used on their purchase order / commission
Information about the artwork / service you are providing
  • a clear description of what you are charging for
  • clear statement about the restriction on use of the artwork by the client (e.g. stipulation as to copyright being retained by the artist). While this could be on another document, an explicit summary statement on the invoice makes matters clear to the client. If it's artwork you should include the dimensions, media and title, whether or not it is framed and the framed dimensions.  You could be famous one day - this is provenance!
  • the supply or tax date - the date the goods or service were provided to the client
  • the date of the invoice - this might be the date of supply - or it could be before (e.g. for commission stage payments) or after

Payment Due
  • the amount(s) being charged
  • if relevant the equivalent sum in the client's currency   (i.e. you control the exchange rate used and it should be that which relates to the date of supply)
  • the VAT or purchase tax payable if applicable. Any purchase tax usually relates to where you live. The exception is if the product is digital and supplied within the EU in which case the VAT is now levied at the rate applicable in the place the digital product is being sent to - and the fact you have to register in that country for VAT! (see VAT for Artists)
  • the total amount owed
  • payment terms e.g. when the payment becomes due, how much you charge for late payment and how payment should be made

A Making A Mark Guide: An Export Invoice for Art
​

 If you want to export artwork, the invoice becomes a bit more complicated.  I created a standard template the first time I forgot what the customs tariff commodity code was!

You should also be aware that exporting became more challenging after governments started to become much more rigorous in tackling money laundering. The best advice when exporting is to make sure you are following all the current up to date rules and prepare all the relevant paperwork properly.

READ: Exporting Art (Part 1): The Invoice
This is a technical post about what you need to include on an invoice when exporting an artwork to another country - and explains why you need to include it.

Below is a proforma template for an export invoice. This addresses Customs requirements when exporting art to another country, It's formatted in Word 2011 (.docx format) and can be revised.  It also includes the commodity code for artwork.
makingamark_proforma_export_invoice.docx
File Size: 119 kb
File Type: docx
Download File
Export Invoice for Art Template
A Making A Mark Guide: An Export Invoice for Art | copyright Katherine Tyrrell

Paper versus electronic invoices
​

It's up to you whether you issue an electronic invoice or a paper one.

Many people create both and send the electronic one for payment and include the paper one with the artwork they send. Note that they should be identical - and if the electronic one has been paid then then paper one needs to note that it's paid.

In addition, artists may send a detailed invoice electronically and also use a service to request payment. PayPal is the medium of choice for many people who sell art online. If you can get your detailed invoice data set up on PayPal as a template so much the better - all you ever need to do then is enter the details relevant to that invoice.

PayPal Invoice services

The major advantage is PayPal is that anyone with an email address can receive an itemised invoice from you. They don't need to have a PayPal account.

To email an invoice via PayPal you first of all need a PayPal account.
  1. Log in to your PayPal account and go to the Request Money tab.
  2. Click on the Create an Invoice tab, choose an invoice template and fill in the details
  3. Make sure you review the invoice for accuracy and completeness before you send it
  4. Methods available for paying the invoice: credit card, bank account or PayPal balance.
  5. The fee for sending an invoice, at the time of writing, is 3.4% + 20p per domestic invoice transaction. There are no monthly fees, cancellation fees or any other hidden fees.

Getting Paid
​

Late commercial payments: charging interest and debt recovery

Note that artists can benefit from the legislation which has been introduced in various countries relating to the late payment of invoices. The quote is the standard "terms of payment" paragraph that I include in my invoices.

Reference
Within 60 days of presentation of invoice as per Late Payments of Commercial Debts (Interest) Act 1998, the Late Payment of Commercial Debts Regulations 2002 and the Late Payment of Commercial Debts Regulations 2013. For further info see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/138129/bis-13-705-a-users-guide-to-the-recast-late-payment-directive.pdf 
Interest is charged @ statutory interest rate on all outstanding payments

More information
​

The following links provide more information about and resources for creating invoices for artwork
UKUSA
  • Specific requirements as to invoicing may vary from state to state.
General
  • Artist Bill of Sale | Art Support - Provides a download for a sample bill of sale for artwork plus a detailed explanation of what needs to be included and why
  • Invoicing | Artquest
  • Invoices | Dan dos Santos, Muddy Colors - a 2011 article written by an artist who does commissions and who learned the hard way how to make the invoicing process work in the context of commissions
  • How to create an invoice for artwork | ehow - a very basic description of what you need to do by Melissa Gaines. If you're finding this page too complicated maybe try reading this first.
  • What to put on an invoice - Art Biz Blog - A summary of what's required for a proposal and invoice
  • How to create your first freelance invoice - this actually relates to writers, however the principles are essentially the same
BACK TO HOME
BACK TO MONEY & TAX
ADVERT