Glossary · Invoices and billing
Deposit invoice
Also called Advance payment invoice
A deposit invoice asks for part of the price up front, before work starts, to secure the booking and reduce the supplier’s risk.
A deposit invoice bills a share of the total before work begins — a quarter to a half is common for project work. The final invoice then shows the full price with the deposit deducted.
Deposits screen out clients who were never going to pay, fund early costs and give you a natural checkpoint: no deposit, no start date. They are standard in events, construction, custom manufacturing and much creative work.
Where VAT applies, a deposit usually creates a tax point for that portion, so check how your invoicing tool handles it. The final invoice must show the deposit clearly, so the customer isn’t asked to pay it twice.
Example
A photographer books a two-day shoot for €3,000 and issues a 30% deposit invoice for €900. The final invoice shows €3,000 less the €900 deposit: €2,100 due.