How to invoice a client for freelance work

A freelancer is an independent contractor who gets paid on a per-job or per-task basis, usually for short-term projects. Freelancing offers the ability to work from home or in a non-traditional office, a flexible work schedule, and a better work/life balance.

Invoicing is a vital part of the exciting world of freelancing. While it may seem like a bureaucratic inconvenience, it helps you maintain a profile that is professional and demonstrates your expertise, while ensuring timely payments. Whether you’re figuring out how to send an invoice for freelance work, pondering on how to invoice a client, or trying to understand how to invoice a company, this step-by-step guide will help you through the process.

What is a freelance invoice?

A freelance invoice is a formal document issued to a client outlining the freelancer's services, prices, and payment instructions. It is vital for maintaining clear communication and ensuring that clients understand what they are paying for. If you want to understand how to invoice a client for freelancing work, you must first create professional, clear and details invoices.

6 Steps to invoice a client for freelance work

Here’s how you can send a professional and effective invoice:

1. Choose a professional template

   Begin by selecting a clean, reusable invoice template with your company name, logo, and a professional design. A decent template allows for easy customisation and reuse in future projects.

2. Add contact details

   Include your name, address, email, phone number, and the client's complete contact information. Proper information eliminate confusion regarding who the invoice is for.

3. Itemise the services provided

   Break down the services or tasks you've accomplished, identifying each one and its cost. This step is essential when invoicing a client for freelance work since it ensures transparency.

4. Include important invoice details

   Include the invoice date, a unique invoice number, and the payment due date. These features are essential for tracking and referring payments.

5. Specify payment terms

   Outline how you want to be paid, whether by bank transfer, online payment platforms, or another means. If relevant, include penalties for late payments.

6. Add a finishing touch

   To keep the relationship positive, end with a courteous thank you note. A signed invoice provides a personal and professional touch.

How to invoice a company for freelance work

If you’re wondering how to invoice a company for freelance work, the process is similar to invoicing an individual. However, companies frequently request extra details:

• Ensure the invoice is addressed to the correct department or person.

• Include any company-specific requirements, like purchase order (PO) numbers or VAT information.

Meeting these expectations streamlines the invoicing process and boosts your chances of receiving payment on schedule for your freelance work.

VAT and freelance invoicing in the UAE

Understanding VAT is a critical aspect of how to invoice a company for freelance work in the UAE. Freelancers must comply with VAT requirements if their revenue exceeds certain criteria.

• Income below AED 187,500: Exempt from VAT registration.
• Income between AED 187,500 and 375,000: Eligible for voluntary VAT registration.
• Income above AED 375,000: Mandatory VAT registration.

Once registered, you must:

• Apply 5% VAT on taxable services.
• Generate VAT-compliant invoices with explicit VAT data.
• Regularly submit VAT returns via the Federal Tax Authority (FTA) portal.

Voluntary VAT registration, especially for lower incomes, can boost your reputation and allow you to receive input VAT credits on expenses.

E-Invoicing: The future of invoicing in the UAE

If you’re exploring how to send an invoice for freelance work in the UAE, it is vital to understand that e-invoicing will soon be mandatory. Starting July 2025, all VAT-registered enterprises must issue electronic invoices. The invoices must:

• Use a structured electronic format (e.g., XML).
• Provide a unique Invoice Reference Number (IRN).
• Have QR codes for easy validation.

E-invoicing simplifies the invoicing process and is consistent with the UAE's objective for a sustainable and paperless future.

Why knowing how to invoice matters

Invoicing isn’t just a handy skill—it’s essential for any freelancer. A well-structured invoice builds trust with clients, speeds up payments, and keeps your finances on track. While twofour54’s Business Development team supports companies, not individuals, as a freelancer, all licensing and registration matters are handled directly by the Creative Media Authority (CMA), which is the official body overseeing freelance work in Abu Dhabi.

Whether working with individuals or businesses, a well-crafted invoice ensures transparency, compliance, and creates a professional impression. Master the art of invoicing, stay current with rules, and concentrate on expanding your freelance business.