Can I apply different tax rates to different products on one invoice?

Yes — set the tax percentage per line item so each product is taxed correctly, which matters if your product mix includes items taxed at different rates.

Should shipping be taxed the same as the product?

Not always — shipping tax treatment can differ from the product itself depending on the situation. Add shipping as its own line item so you can set its tax rate independently.

Do I need a separate invoice for each order?

Generally yes — each sale or order should have its own invoice with a unique invoice number for clean recordkeeping.

Is this suitable for e-commerce order confirmations?

It works well as a downloadable PDF invoice/receipt to send alongside or after an online order, particularly for B2B or wholesale sales.

Free Retail & Product Sales Invoice Template

Itemize products, apply the right tax per item, and add shipping as its own line — clear enough for a customer or a bookkeeper.

Retail and product-sale invoices differ from service invoices mainly in that tax rates can vary item to item — some products are taxed differently than others in some provinces, and shipping is often taxed separately from the goods themselves. A retail invoice needs to itemize clearly enough that both the customer and your bookkeeper can follow it.

What to include on a retail invoice

Product name/SKU, quantity, and unit price for each item
Tax rate applied per item (some goods may be exempt or taxed differently)
Shipping and handling as its own line item, with its own tax treatment if different from the goods
Return or exchange policy, if relevant, noted in the invoice terms

Handling mixed tax rates

If you sell a mix of taxable and tax-exempt or differently-taxed items, apply the tax percentage per line rather than one flat rate across the whole invoice — this keeps your records accurate and avoids over- or under-charging tax on any individual product.

Start from the Retail / Product Sales template — per-item tax and shipping ready.

Create a Free Retail Invoice →

Frequently asked questions

Can I apply different tax rates to different products on one invoice?: Yes — set the tax percentage per line item so each product is taxed correctly, which matters if your product mix includes items taxed at different rates.
Should shipping be taxed the same as the product?: Not always — shipping tax treatment can differ from the product itself depending on the situation. Add shipping as its own line item so you can set its tax rate independently.
Do I need a separate invoice for each order?: Generally yes — each sale or order should have its own invoice with a unique invoice number for clean recordkeeping.
Is this suitable for e-commerce order confirmations?: It works well as a downloadable PDF invoice/receipt to send alongside or after an online order, particularly for B2B or wholesale sales.