Service Invoice Template
A service invoice bills for work instead of products, so it replaces the product fields of a sales invoice (SKU, quantity shipped, shipping) with the facts a client needs to approve a bill for time and expertise: when the service was performed, where, by whom, on what basis, and under which agreement. This template supports the three ways services are priced, and lets you mix them on one invoice: hours times a rate, a fixed fee for a defined deliverable, and a per-unit charge such as per user, per visit or per site each month. It has fields for the statement of work or quote the invoice draws on, the client's PO or cost centre, reimbursable expenses at cost and the tax treatment of the services where they are delivered, which matters more for services than for goods because US states disagree about which services are taxable. It suits small firms billing other businesses: IT support, bookkeeping, cleaning contracts, training, maintenance and similar recurring or project work. For a one-person business invoicing in their own name, the freelance and self-employed templates fit better. The download is an editable HTML invoice with number, dates, a line table and totals: fill it in your browser and print or save it as PDF, or type or say what you did and InvoiceQuickly drafts an editable invoice for you to check before saving.
Preview this editable document
Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.
What This Template Includes
- Service date or service period
- Service location, if different from the billing address
- Who performed the service (name or role), where the client needs it
- Agreement, statement of work or quote reference
- Client PO or cost-centre reference
- Billing basis on each line: hours and rate, fixed fee, or per unit
- Description of each service: the task and its result
- Recurring charges with the period they cover
- Reimbursable expenses at cost, with receipt references
- Tax treatment of the services where they are delivered
- Your tax or registration number, if you are registered
- Late-payment terms agreed in the contract
How to Create Your Service Invoice
- 01
Describe your work
Type a plain English description of the services you provided, the client, and the amount.
- 02
AI generates your invoice
InvoiceQuickly's AI drafts the client, line items, dates, and totals for you to review before saving.
- 03
Review, download, and send
Check every detail, download the PDF, or use Pro to email the PDF directly to your client.
Recommended Payment Terms
Business clients usually pay service invoices on net 15 or net 30 terms, set in the service agreement and repeated on every invoice with the actual due date. Recurring services (a monthly support plan, a cleaning contract) are normally billed in advance for the coming period, with usage-based or out-of-scope work billed in arrears on the next invoice. Projects are billed in stages or on completion as the statement of work says. For a new client or a large project, take part of the fee up front on its own invoice. Ask before the first invoice who approves it and whether a PO number must appear, because an invoice without one is often returned unpaid. If your contract allows a late fee, state it on the invoice and check the rules in your client's state or country.
Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.
Tax Information
Services are taxed very differently from goods. Many US states tax most goods but only some services, while a few tax services broadly: South Dakota taxes the sale of all services unless the law exempts them, at 4.2% state plus 1% or 2% municipal tax (6.2% in Sioux Falls); New Mexico's gross receipts tax applies to most services, and since 1 July 2019 the invoice must either state the tax separately or say it is included; Hawaii's general excise tax is on the business, and if you pass it on visibly you may charge at most 4.712% where the total rate is 4.5%. Check the rule for the state where the service is delivered before adding a tax line, and ask for an exemption certificate when the client claims one. Outside the US, charge VAT or GST only if you are registered and follow your authority's invoice rules. InvoiceQuickly applies one tax-exclusive percentage per invoice and preserves up to four decimals in the saved rate, including Santa Fe's 8.1875%, when you edit or duplicate the invoice. Tax-included pricing is not supported. Check the result against the exact rate. It copies saved tax IDs to new invoice PDFs; check the saved IDs and PDF before sending. General information checked on 28 October 2026, not tax advice.
Industry context (2026)
The difference between a goods invoice and a service invoice is mostly a tax difference. Since the US Supreme Court's 2018 South Dakota v. Wayfair decision, a seller can owe sales tax in a state without a physical presence there, and the states that tax services broadly are the ones where a service invoice most often needs a tax line. Three examples from state sources checked on 27 October 2026: the South Dakota Department of Revenue says sales tax applies to all services unless specifically exempt, with a 4.2% state rate (returning to 4.5% on 1 July 2027 under SDCL 10-45-2) plus 1% or 2% municipal tax; the New Mexico Taxation and Revenue Department's FYI-105 explains that gross receipts tax is imposed on the seller and, since 2019, must be stated separately or shown as included on the invoice; and the Hawaii Department of Taxation says general excise tax is on the business, with a maximum visible pass-on of 4.712% where the total rate is 4.5%. Each state also sets its own registration thresholds, so check before billing clients across state lines. This is general information, not tax advice.
Worked example
Worked example (illustrative prices, not market rates): a small IT support company in Sioux Falls, South Dakota, bills a local law office under a managed-services agreement. Invoice INV-1186 is dated 1 December 2026, net 15, so it is due 16 December. Line 1: managed IT support, December 2026, billed in advance, per agreement MSA-14, 10 users × $65.00 = $650.00. Line 2: on-site visit 14 November, replace failed network switch and restore connections, 2.5 hours × $110.00 = $275.00. Line 3: 24-port network switch supplied, 1 × $289.00. Subtotal $1,214.00. South Dakota taxes the sale of services unless exempt, so the support plan and the labor are taxed along with the switch, at Sioux Falls' combined 6.2%: $1,214.00 × 6.2% = $75.268, rounded to $75.27. Total $1,289.27. The same invoice for a client in Santa Fe, New Mexico, would carry gross receipts tax at 8.1875%, which is $99.40 (from $99.39625). InvoiceQuickly stores the rate to four decimal places, so 8.1875% and its $99.40 tax are preserved when editing or duplicating. In a state that does not tax IT support, only the switch might be taxable, which is why the template keeps parts and services on separate lines.
Common mistakes to avoid
No service date
An invoice dated 1 December for work in November leaves the client guessing which month they are paying for. Put the date or period on each line.
Assuming services are never taxed
In South Dakota, New Mexico and Hawaii most services carry tax, and other states tax specific services. Check the state where the service is delivered before sending.
Mixing parts into the service fee
A single 'repair' line hides what was supplied and, where only goods are taxed, leaves no figure to calculate tax on. Split parts and labor.
No agreement or PO reference
Accounts-payable teams match invoices to POs and contracts. Without the reference the invoice is often returned unpaid.
Rounding a three-decimal rate
Entering 8.19% for an 8.1875% rate overcharges by a few cents per invoice. Use the exact rate, or calculate the tax line yourself.
Invoicing Tips
- 1Put the service date or period on every line, not just once at the top. A client approving 'Support, November' and 'On-site visit, 14 November' can match each to their own records.
- 2Name the agreement the invoice draws on ('per SOW-2026-07, section 3'). It turns a query about price into a check against a document both sides signed.
- 3Bill recurring services per unit when the unit can change (per user, per site, per visit), so adding a user next month changes the quantity, not the agreed rate.
- 4Separate parts or products from labor when you supply both. Where only some lines are taxable, the split is what the tax is calculated on.
- 5Pass reimbursable expenses through at cost with receipt references, or at the markup your agreement allows. Do not fold them into the service fee.
- 6Send the invoice on the date the agreement says: on completion, at each stage or on the first of the month for recurring services. Late invoices make late payments.
Related Resources
Frequently Asked Questions
What is a service invoice?
An invoice for work performed rather than goods sold. Instead of product codes and quantities shipped, it shows when and where each service was performed, the basis of the charge (hours, a fixed fee or a per-unit rate), the agreement it relates to, any reimbursable expenses, tax where it applies and the amount due.
What should a service invoice include?
Your business name and contact details, the client's name and address, a unique invoice number, the invoice date and due date, the service date or period, a description of each service with its hours, fixed fee or units, any expenses, tax where it applies, the total and how to pay. Add the agreement reference and the client's PO number if they use one.
What is the difference between a service invoice and a sales invoice?
A sales invoice bills goods: product codes, quantities ordered and shipped, unit prices and shipping. A service invoice bills work: service dates, location, hours or fixed fees and the agreement behind them. Many businesses send both, and some invoices mix the two, for example labor plus parts.
Do I charge sales tax on services?
Only where the state taxes that service. Many states tax few services, while South Dakota taxes all services unless exempt and New Mexico's gross receipts tax covers most services. Hawaii's general excise tax is a tax on the business that may be passed on. Check the state where the service is delivered.
How do I invoice a recurring service?
Bill the period in advance, on the same day each period, and name the period on the line ('Managed IT support, December 2026, 10 users × $65'). Bill extra or out-of-scope work separately, in arrears, with the date it was requested.
Can I bill hourly and fixed-fee services on the same invoice?
Yes. Put the fixed fee on one line as quantity 1 with the deliverable it covers, and each hourly item on its own line as hours times rate. Keeping them separate lets the client see that the agreed fee has not changed.
Can I create a service invoice in InvoiceQuickly?
Yes. Type or say what you did and InvoiceQuickly drafts the client, lines, rates and due date into an editable invoice you review before saving, with up to 100 lines, one tax rate and one discount. Free covers 5 invoices, 5 clients and 3 AI drafts in total; Pro is $9 a month for unlimited invoices, email delivery, estimates, recurring invoices and a client portal. A recurring schedule creates one line with the saved tax rate, so multi-line recurring services need extra lines added to the generated draft or a duplicated invoice instead.