Invoice Form FAQ


Q. What is the difference between invoice date, ship date, and purchase order date?
A. The invoice date should be the date the invoice was created by the seller. The ship date is the date the goods are actually shipped. Purchase order date is the date the purchase order is created by the customer. Payment terms will usually be in relation to the invoice date.

Q. What is UOM?
A. UOM is a common abbreviation for Unit Of Measure. Each item on the invoice will be sold by specific units. For example, nails may be sold by the pound. Hats may be sold as each or by the dozen. The unit price will be the price for each unit of good sold.


Q. Which sales tax is applicable? Is it determined by the seller's address, the seller's head office address, the buyer's address or the location of the goods?
A. Generally the sales tax of the seller will apply. If a buyer purchases and takes delivery outside the seller's jurisdiction then the seller's sales tax would not be applicable. But any sales tax in the jurisdiction where the purchaser took possesion may be applicable. The seller would usually only be required to collect sales tax where the buyer purchases and takes possession within the seller's jurisdiction. The responsibility would be on the buyer to self-assess and pay sales tax in the jurisdiction where the buyer took delivery or where the good or service will be used. A self-assessed tax would not be included on a purchase order or invoice but would simply be paid directly to the Buyer's governing body. The client should consult authorities in their jurisdiction to confirm the requirements for collecting sales tax especially where a transaction involves multiple jurisdictions. (e.g. where the seller is located in Kansas and is shipping to a buyer who takes possession in Florida, the Kansas sales tax would not be applicable but the buyer may be expected to self-assess in Florida)

Q. Which jurisdiction should be selected for governing law?
A. Generally the jurisdiction where the seller is located will be the governing law. The governing law indicates which jurisdiction's commercial law and consumer protection code (or its equivalent) will govern the invoice.