Free tool
Create professional service invoices with GST for services rendered.
Business Address
Customer Name
Customer Address
Invoice #: SRV-2026-5511
Date: 2026-08-30
| Service Description | Qty | Rate | Amount |
|---|---|---|---|
| Service description | 1 | ₹0.00 | ₹0.00 |
Service invoices have specific requirements that vary by country. Understanding these requirements is crucial for service-based businesses operating in India, the United States, or the European Union.
Service Tax to GST: Services are now taxed under GST. Most services attract 18% GST, though some services like healthcare and education are exempt or have lower rates.
SAC Codes: Services must be classified using Service Accounting Code (SAC). Common codes: 998314 (IT services), 998311 (Management consulting), 998312 (Financial services).
Place of Supply: For services, place of supply determines whether CGST+SGST or IGST applies. Location of service recipient is typically the place of supply.
Time of Supply: For services, GST is due when invoice is issued or payment is received, whichever is earlier. Invoices must be issued within 30 days (45 days for banking/financial services).
Reverse Charge: Some services like legal, accounting, and certain consulting services are subject to reverse charge mechanism where recipient pays GST.
Sales Tax on Services: Most states don't tax services, but some do. States like Hawaii, New Mexico, and South Dakota tax most services. Professional services are typically exempt.
Service Invoices: While not federally mandated, professional service invoices should include scope of work, hourly rates or fixed fees, payment terms, and service period.
1099 Requirements: Businesses paying $600+ annually to independent contractors must issue Form 1099-NEC. Proper invoicing helps track these payments.
State-Specific Rules: Some states like California require detailed invoices for certain professional services. Always check state-specific requirements.
Retainer Agreements: For ongoing services, retainers are common. Invoices should clearly show retainer usage and remaining balance.
VAT on Services: Most services in EU are subject to standard VAT rates (typically 19-27%). However, some services like medical, educational, and financial services may be exempt or reduced rate.
B2B Services: B2B services are typically subject to reverse charge mechanism - customer accounts for VAT, reducing supplier's VAT obligations.
Place of Supply: For B2B services, place of supply is customer's location. For B2C, it's typically supplier's location unless specific rules apply.
Digital Services: EU businesses selling digital services to EU consumers must comply with VAT MOSS (Mini One Stop Shop) for simplified VAT reporting.
Invoice Requirements: Service invoices must clearly show service description, service period, VAT breakdown, and customer VAT number for B2B transactions.