How to Create an Invoice on PayPal

PayPal invoices are fast, free, and full of features

A female designer talking on the phone while using her computer in front of dress form models

 PeopleImages / DigitalVision

A PayPal invoice is a free tool provided by PayPal for users who need to request money for services or business from other people. PayPal invoices can be sent to anyone with an email address, whether they have a PayPal account or not, and can be paid by PayPal or with a credit card.

Reasons to Use a PayPal Invoice

While it's possible to ask someone else for money using PayPal's basic Request feature, there are several benefits to creating a PayPal invoice.

  • If you're running a business, using a PayPal invoice will make you look more professional.
  • Each invoice is given a unique reference number which makes keeping track of payments easier.
  • The same PayPal invoice can be sent to numerous individuals at once which can save time.
  • You can send reminders to recipients for unpaid PayPal invoices.

How to Create a PayPal Invoice Online

Invoices can be created, saved, and managed directly from the main PayPal website after logging into your PayPal account. All invoices can be fully customized and re-used in the future for new clients or customers.

Here's how to create and send an invoice on PayPal.

  1. After logging in to the PayPal website, hover your mouse over Tools from the top menu and click Invoicing.

    Invoicing tab on Paypal website
  2. From the next page, click Create invoice from the top menu or the blue Create button.

  3. On the right side of the screen will be fields called Invoice number, Invoice date, Reference, and Due date.

    Invoice information fields on Paypal website

    These are all optional but can help you keep track of the invoice.

  4. On the left side you should see a blue box with Add your logo in it. Click this to upload an image for your PayPal invoice template. This could be a company logo or social media icon.

    Add your logo button on PayPal website

    Adding an image is optional. If you don't add an image, the invoice will simply show a white space instead.

  5. Next to Your business information, click Edit to add optional information such as your mailing address, website, email, and business number.

    Edit button on Paypal website
  6. In the field next to Bill to, enter the email address or PayPal contact you want to send the invoice to.

    Bill to field on Paypal website
  7. Next to CC, enter the email you wish to send a copy of the invoice to after it's sent.

    CC field on Paypal website

    All of your invoices will be saved within your PayPal account so there's no need to send yourself a copy.

  8. Enter a product or service name in the Item name field. This needs to be filled in though the description field below it is optional.

    Item name field on Paypal website
  9. Enter any discount or shipping prices and check the boxes next to Allow partial payment and Allow customer to add a tip if you want to accept those options.

    Allow partial payment and Allow customer to add a tip checkboxes
  10. Fill in any required additional information in the Note to recipient and Terms and Conditions boxes at the bottom of the invoice.

    Note to recipient and Terms and Conditions fields
  11. Click the Attach Files button to upload an image or document to be sent along with the invoice. This could be your business' logo or even a QR code you've created.

    Attach Files button on Paypal website
  12. When all the necessary information and media has been added to the PayPal invoice, click the blue Preview button to view a preview of what it will look like.

    Make changes if needed.

  13. When you're ready to send, hover your mouse cursor over the Send button and click Send via PayPal to send the invoice to your contact. If you want to use this invoice as a template for future invoices, hover your mouse over the arrow on the Save as Draft button and click Save as Template.

    Send options for Paypal via the web

How to Create an Invoice With the PayPal Business App

The PayPal Business app is available for iOS and Android smartphones and tablets and can also be used to create and send PayPal invoices.

The invoices created within the PayPal Business app are identical to the ones made on the PayPal website. Invoices created on the app can be managed on the web and vice versa.

  1. Open the PayPal Business app on your iOS or Android device.

  2. Tap Invoicing from the menu along the bottom of the screen.

  3. Tap the plus icon in the upper-right corner.

    If you've defined Templates in Paypal, you'll need to choose one here.

  4. Tap Bill to and enter the email address or PayPal contact name of the recipient.

    Three iOS screens showing Invoicing tab, Plus sign and Bill to button
  5. Tap the current currency to the right of Bill to change the currency. Only do this if needed.

  6. Tap Add item or service and fill in the fields detailing the service or product your billing for, how much each is worth, the tax rate, etc. Tap Add Item when done.

    You will need to add at least one item for the invoice to send.

  7. Scroll down and tap Allow partial payment and Allow tips if you wish to enable these optional payment options.

  8. Tap Terms and Conditions, Reference, Note to customer, and Memo to add text to these fields.

    Three iOS Paypal screens, showing Add item or service, partial payment and tip toggles, and Note to Customer

    Most of the options within a PayPal invoice are completely optional though can be useful for clearly communicating the service offered.

  9. Tap Attach photo to upload a photo to the invoice.

  10. Tap Save to save this invoice for later or Send to send the invoice to the recipient.

Are There PayPal Invoice Fees?

Creating and sending a PayPal invoice is completely free and requires no payment or purchase of any kind. PayPal does, however, charge fees for transactions and currency conversions which means that when a client or customer pays their invoice, some of the total amount will be deducted.

PayPal's fees vary depending on region and payment type so it's worth reading the official PayPal fees web page for the latest changes to their service charges.