Deposit or advance payment, no difference
A retainer paid by a client to an architect or a lawyer is a form of advance payment for services.
Issuing an invoice
1st invoice: deposit
When you request a deposit from your client, you issue a deposit invoice. This invoice is subject to VAT and the invoiced amount will be included in your income for the period.
👇 Example
2nd invoice: balance
When you create the final invoice, you only invoice the balance: total amount - amount already invoiced as a deposit.
💡 For clarity for your client, indicate the total amount of the service on the final invoice. Then add a negative line "Deposit already invoiced" showing the amount already invoiced as a deposit. This way, the client can see exactly what your service cost.
👇 Example
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