Deposit invoice
Collect the deposit up front.
Request the first payment now, show the remaining balance, and keep the project paperwork clear.
Request a deposit for approved work and show the remaining balance that will be invoiced later.
Document parties
Document details
Line items
A deposit invoice requests an upfront payment before the full job is done. It protects you from doing significant work unpaid and signals that the client is committed. The document bills a percentage now and shows the remaining balance to be invoiced later. This generator builds a deposit invoice PDF with the percentage due now and the balance clearly stated.
When to ask for a deposit
Deposits make sense on larger projects, custom work, and any job where you will buy materials or commit weeks before final payment. A common structure is 30% to 50% up front, with the balance due on completion or at agreed milestones.
The deposit both funds the early stages and filters out clients who are not serious. Someone unwilling to commit a deposit on a big project is often the client who will be slow to pay the final invoice too.
Showing the deposit and the balance
A deposit invoice should state the full project value, the deposit amount and percentage, and the remaining balance so nothing is ambiguous. When the work is complete, you issue a final invoice for the balance, referencing the deposit already paid.
If tax applies, decide whether it is charged on the deposit or only on the final invoice, and be consistent. Showing the tax treatment on the deposit invoice avoids a reconciliation problem at the end.
How to use it
- 1Enter the full project value.
- 2Set the deposit percentage due now.
- 3The tool shows the deposit amount and the remaining balance.
- 4Add tax handling if the sale is taxable.
- 5Number the deposit invoice and set its due date.
- 6Download the PDF; invoice the balance on completion.
What to include for the US, Canada, the UK, and Australia
- In the US, deposits are contractual; state clearly whether the deposit is refundable and when the balance is due.
- In Canada, GST/HST may apply when the deposit is applied to the sale; follow your registration rules consistently.
- In the UK, VAT is generally due on a deposit at the point it is received for a taxable supply.
- In Australia, GST timing on deposits depends on your accounting method; be consistent between the deposit and the final invoice.
This is general information, not legal or tax advice. Tax registration numbers, mandatory wording, and retention periods differ by country and by state or province — confirm the rules that apply to you before sending a document to a client.
Worked example
A photographer quotes a $2,400 wedding package and asks for a 40% deposit to hold the date. The deposit invoice bills $960 now and shows an $1,440 balance due after the event.
The deposit secures the booking and covers early costs. On delivery, the photographer issues a final invoice for $1,440 that references the $960 deposit already paid, and the totals reconcile to the original $2,400 quote.
FAQ
What is a deposit invoice?
An invoice for a partial upfront payment, showing the amount due now and the remaining balance to be billed later.
How big should a deposit be?
Commonly 30% to 50%, higher when you incur significant upfront costs. Match it to your risk on the project.
Is a deposit refundable?
Only if your terms say so. State clearly whether the deposit is refundable and under what conditions before the client pays it.
Do I charge tax on the deposit?
It depends on your jurisdiction and accounting method. In several regions tax is due when the deposit is received. Decide the treatment up front and apply it consistently.
How do I bill the balance?
Issue a final invoice for the remaining amount that references the deposit already paid, so the two documents add up to the full project value.
What if the project is cancelled after the deposit?
Your terms govern this. Many deposits are non-refundable precisely to cover the work and commitment made before cancellation — but you must have stated that in advance.
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