Invoice compliance made simple: What to include by state

Published January 13 2026

Table of contents

• What is an invoice?
• What to include on an invoice
• Invoice requirements by state
• What an invoice should include if you're doing business across state lines
• Invoice with confidence using Xero
• FAQs on invoice requirements by state

Key takeaways

• Include clear seller and customer details, a unique invoice number, dates, itemized charges, separate tax lines, totals, payment terms, and how you want to be paid.
• Invoicing requirements vary by state. State differences are typically about how sales tax, trade names, and license numbers (for example, sales tax or liquor licenses) should be displayed – but may also cover late fee wording and limits and industry-specific requirements.
• For cross‑state sales, apply the destination or service location rules, show tax separately, and make sure you understand invoicing requirements in both states.

What is an invoice?

An invoice is a formal record of a transaction between a business and its customer. Invoice details should include an itemized list of goods or services the business has provided, costs, fees, and sales taxes, as well as information about the business and the customer.

Vendor invoices are a seller's request for payment. They function like bills but may also act as a record of the transaction for tax and bookkeeping purposes.

What to include on an invoice

Wondering how to write an invoice? A standard invoice should include:

• your business name and contact details
• the customer's name and contact details
• descriptions of goods or services
• prices, any fees, and sales tax if applicable
• any late fees or early payment discounts
• any notes related to the transaction

You should also list payment methods and terms on the invoice. Common invoicing terms include Net 30 (due in 30 days), Net 60 (due in 60 days), end of the month (EOM), month following invoice (MFI), and due on receipt.

And to help both you and the customer keep track of the invoice, it’s a good idea to include an invoice number, a purchase order number, and a customer account number.

You should also check the laws in your state to see if you're subject to any special compliance requirements.

Keep records in case of customer disputes and for any tax audits. Check out IRS tips about recordkeeping or look at Publication 583 to learn more about recordkeeping requirements.

Invoice requirements by state

Since there are no federal invoicing requirements, you must follow the laws in your state to see what is required on an invoice. Most states don't have overarching invoice requirements – but other state laws may apply to invoices. For instance, you generally cannot use a fictitious business name (a ‘doing business as’ name that's different from your legal business name) on an invoice or anywhere else, unless the fictitious name is registered with the state.

However, many states have invoice requirements for specific industries. In particular, you're likely to face special rules if you deal with restricted products, such as alcohol or tobacco, or if you're in a service-related industry such as car repairs.

California

There are no state-wide invoice compliance requirements in California, but there are several codes related to requirements for specific industries.

• Sales of all liquor, except for beer, from one licensee to another must be documented on an invoice. Such invoices must include the name and address of the purchaser, the date of sale, an invoice number, and details about the liquor (like the gallons of wine included in the invoice). The invoices must be available for examination, and they shouldn't be mixed with invoices for non-alcoholic products.
• Most of California's other invoicing statutes relate to repairs – think appliance repair, auto repairs, and TV tube replacements. These invoices must include details about the item being repaired, where it was repaired, and an itemized breakdown of all parts and services.
• There are also laws governing invoicing between government contractors and government agencies – if your business provides goods or services to the government, make sure you understand the requirements.

Check California laws to see if your industry has special invoicing rules. Even if not, always note the sales tax collected on the invoice. If an invoice doesn't list sales tax, it cannot be used as proof that you collected sales tax from a customer.

New York

New York State has specific requirements about how contractors should invoice government entities for goods or services. The state's prompt payment laws require government entities to process or pay contractor invoices within a certain timeframe.

If you provide an invoice to a consumer in New York State, the invoice must disclose:

• all of the items or services being provided
• the cost
• the date of the purchase or service
• the delivery date
• the provider's details
• a phone number for the provider's billing or customer service department

If you provide a receipt to the customer at the time of purchase, it only needs to include your name, address, and phone number. If the invoice contains automatic renewal terms, those must be clearly disclosed on the invoice.

Texas

Most of Texas's invoicing laws set out how contractors should format their invoices to government agencies. If your business has a government contract, make sure you're aware of the requirements. The laws also protect you – Texas's prompt payment laws require most government entities to pay contractors within 31 days of receiving your invoice.

Although Texas doesn't have any invoicing requirements for most transactions, merchants must provide customers with a receipt or contract at the time of the transaction. The receipt or contract must:

• be in the same language as the oral contract
• contain the date of the transaction
• include the name and address of the merchant

The document must also contain a statement explaining that the buyer may cancel the transaction anytime before midnight of the third business day after the transaction.

Florida

Like most states, Florida has statutes that set out how contractors should invoice government agencies. There are also industry-specific laws – for example, invoicing requirements for companies that deal with tobacco products or fire suspension equipment.

Under Florida law, you may not issue an invoice for goods or services that have not been ordered, unless you include the following warning in 30-point bold face type:

This is a solicitation for the order of goods or services, and you are under no obligation to make payment unless you accept the offer contained herein.

Make sure you follow this law – as the Florida legislature sets out, there are stiff penalties if you don’t.

Illinois

Like Florida, Illinois has special laws for government contractors invoices. These invoices must detail the subcontractor’s services and meet formatting and submission requirements. Illinois's prompt payment rules require state agencies to pay contractor invoices within 60 days or be subject to interest.

Illinois also has industry-specific rules – for example:

• if you buy tobacco for resale from out of state, you must keep the invoice for inspection
• if you own a car dealership and advertise prices based on the dealer's invoice, you must let the customer inspect the invoice upon request.

The IRS has links to state government websites where you can learn more.

What an invoice should include if you're doing business across state lines

If you're sending an invoice to a customer in another state, make sure you meet any relevant requirements in your state and their state. Also:

In most cases, sales tax applies at the destination. That means that you don't apply the rate from your local area. Instead, you use the rates and rules in the buyer's location – check with the state or locality to figure out applicable rates and whether or not you need to register for an account.

• In some cases, providing services or deliveries automatically creates nexus, while in others nexus is only triggered if you reach a certain number of sales or transactions.

Invoice with confidence using Xero

Figuring out how to draft an invoice is easy when you've got the right accounting software. Xero makes it simple to generate and send professional invoices. It automatically calculates the sales tax in multiple jurisdictions, facilitates online payments, sends reminders, and creates audit-ready record – so you can stay compliant with state requirements.

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FAQs on invoice requirements by state

If you have more questions about invoices, check out answers to these frequently asked questions about invoice compliance.

What is legally required on an invoice in the US?

The United States does not have any federal invoicing laws. But you should keep invoices with your other business tax records for at least 3 years in case you get audited.

Which state’s rules should my invoice follow?

Your invoices must comply with the laws in the state where you operate your business. But if you're shipping or delivering goods or services to a customer in another state, you may need to meet state-specific requirements at their location.

Do I need to include my EIN or sales tax permit number on my invoices?

Check the laws in your state. You may need to include your EIN, your sales tax permit number, or neither of these numbers.

Are electronic invoices acceptable?

For recordkeeping purposes, electronic invoices are the same as paper invoices. But check with the laws in your state to ensure that electronic invoices meet state requirements for your industry or the type of invoice you're generating.

Can I charge late fees on invoices in every state?

Not quite. Most states allow you to charge late fees on unpaid invoices, but check state requirements to see if there are any limits or requirements related to late penalties.

Do I need a customer signature on the invoice?

No, there are generally no laws requiring customer signatures on invoices, but you may want to request signatures to confirm receipt of goods or services.