The Future of Invoicing in the Gig Economy for Photo, Video & Audio Production
- Payment Gateways: Different countries prefer different payment methods. While PayPal is widely accepted, clients might prefer wire transfers, Wise (formerly TransferWise), or even local payment options. Each gateway has its own fees and processing times.
- Banking Fees: International wire transfers can incur significant sender and receiver fees, eating into your profit margin.
- Tax Implications: Understanding VAT, sales tax, or other international tax requirements for services rendered across borders is crucial. This is an area where professional advice often pays off. Our guide to managing taxes as a digital nomad provides a starting point. ### Diverse Deliverables and Asset Management Creative projects often involve a multitude of deliverables beyond the final product itself. This can include raw footage, project files, multiple versions for different platforms (e.g., square video for Instagram, widescreen for YouTube), high-resolution images, web-optimized images, stems for audio, or separate voiceovers. Tracking and documenting these deliverables is vital for both client satisfaction and justifying the billed amount. Invoicing systems need to allow for detailed itemization, potentially even linking directly to cloud storage where assets are delivered. This also protects you against claims of non-delivery or incomplete work. ### Retainers, Milestones, and Payment Schedules Creative projects rarely follow a simple "work now, pay later" model. Many freelancers require upfront retainers to cover initial costs and secure commitment. Larger projects are often broken down into milestone payments tied to specific deliverables or project stages (e.g., 50% upon project kickoff, 25% upon rough cut approval, 25% upon final delivery). Invoicing systems must be flexible enough to handle these varied payment schedules, sending automated reminders, and tracking partial payments. Without this flexibility, managing cash flow becomes a constant headache, particularly for those whose income fluctuates as remote workers. These challenges highlight why generic invoicing tools often fall short for photo, video, and audio production professionals. The need for specialized, intelligent solutions is not just a convenience; it's a financial imperative. --- ## 2. Current State of Invoicing Tools and Their Shortcomings While the market offers a plethora of invoicing tools, from simple templates to sophisticated accounting suites, many still fail to fully address the intricate needs of creative professionals in the gig economy. Understanding these shortcomings is key to advocating for and adopting better solutions. ### Generic Invoicing Software Many popular invoicing platforms like QuickBooks, FreshBooks, or Wave offer features for general business accounting. They handle invoicing, expense tracking, and basic reporting well. However, their limitations for creative industries often manifest in: * Lack of Project-Specific Customization: While you can create line items, these tools may not easily allow for the nuanced breakdown of creative services. For instance, billing for "photo usage rights for social media, 6-month license, 3 images" might require a cumbersome manual entry each time, rather than a pre-defined service block.
- Limited Asset Management Integration: There's rarely a direct link between an invoice and the actual creative assets delivered (e.g., linking to a Dropbox folder or a specific file on a client portal). This disconnect can lead to client confusion or disputes over what was delivered for what price.
- Basic Time Tracking: While time tracking is often available, it might not be granular enough for creative tasks that blend concept work, execution, and revisions. For example, tracking "editing a video" versus "color grading," "sound mixing," and "motion graphics" within the same project isn't always straightforward.
- Absence of IP/Licensing Specifics: Most generic tools don't have built-in fields or templates for specifying intellectual property transfers, usage rights, or licensing terms. These critical details often have to be added as free-text notes, which are prone to error and difficult to standardize. ### Manual Systems and Templates Many freelancers, especially those new to the gig economy or working on smaller projects, rely on manual invoicing via Word/Excel templates or simple PDF generators. The allure is simplicity and zero cost. However, the drawbacks are significant: * Error Prone: Manual data entry is a breeding ground for typos, incorrect calculations, and missed details.
- Time-Consuming: Creating each invoice from scratch or meticulously filling out templates consumes valuable time that could be spent on creative work or client acquisition.
- Lack of Automation: No automated reminders for late payments, no recurring invoice functionality, and no integration with payment gateways mean more administrative burden.
- Poor Tracking and Reporting: Without a centralized system, it's difficult to track payment statuses, outstanding balances, or generate reports on income and project profitability. This makes financial planning and tax preparation much harder for digital nomads residing in places like Bangkok or Buenos Aires.
- Unprofessional Appearance: Inconsistent branding or poorly formatted invoices can convey an unprofessional image to clients. ### Payment Gateway Limitations While services like PayPal, Stripe, and Wise are indispensable for cross-border payments, they are primarily payment processors, not full invoicing solutions. * Separation of Data: Generating an invoice in one system and processing payment in another means data is siloed. It requires manual reconciliation, increasing the chances of errors and complicating financial oversight.
- Limited Invoicing Features: Their built-in invoicing features are often basic and lack the detail required for creative projects, such as multiple item breakdowns, detailed descriptions, or asset links.
- Fees and Transparency: While competitive, their transaction fees can add up, especially for high-volume or internationally varied projects. Understanding the fee structure for different payment methods and currencies is essential, as discussed in our article on managing international payments. The shortcomings of existing tools underscore the need for purpose-built solutions or significant enhancements to current offerings. As the gig economy expands and creative projects become more sophisticated, the demand for smarter, more integrated invoicing mechanisms will only grow. This is particularly true for professionals who operate across time zones and continents, where delays and misunderstandings can be costly. --- ## 3. Emerging Technologies Shaping the Future of Invoicing The future of invoicing for photo, video, and audio professionals in the gig economy is not just about incremental improvements; it's about a shift driven by several powerful technologies. These advancements hold the promise of greater efficiency, security, and transparency. ### Artificial Intelligence (AI) and Machine Learning (ML) AI and ML are poised to revolutionize invoicing by automating repetitive tasks and providing intelligent insights. For creative professionals juggling multiple projects and clients, AI can be a. * Automated Invoice Generation and Categorization: Imagine an AI assistant that learns your billing patterns. It could automatically draft invoices based on time-tracking data, project milestones, or even by analyzing communication (e.g., detecting "final delivery confirmed" in an email). It could then suggest appropriate line items (e.g., "4K video export," "2 revisions included," "additional asset licensing").
- Smart Expense Management: AI can scan receipts and categorize expenses, linking them directly to relevant projects. This is especially useful for freelancers who incur expenses for equipment rental, travel to shoot locations in places like Cape Town, or stock music licenses, ensuring these are accurately passed on to clients or deducted for tax purposes.
- Fraud Detection and Risk Assessment: ML algorithms can analyze payment behaviors to flag suspicious transactions or identify clients with a history of late payments, giving freelancers a heads-up.
- Personalized Reminders and Follow-ups: AI can analyze client payment history and communication styles to personalize payment reminders, improving the chances of timely payment without alienating clients.
- Predictive Analytics for Cash Flow: By analyzing past income, project pipeline, and payment habits, AI can offer predictions on future cash flow, helping freelancers in cities like Seoul better plan their finances and manage their remote work stability. ### Blockchain Technology for Secure Transactions and Smart Contracts Blockchain, often associated with cryptocurrencies, offers a decentralized, immutable ledger that can bring unparalleled security and transparency to financial transactions. * Secure and Transparent Transactions: Payments made via blockchain could be faster, more secure, and less prone to fraud, with every transaction recorded on a public ledger. This can be particularly beneficial for cross-border payments, reducing reliance on traditional banking intermediaries and their associated fees and delays.
- Smart Contracts for Automated Payments: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. For creative work, a smart contract could be programmed to automatically release partial payments to a videographer once a specific milestone (e.g., "rough cut approved by client" via a digital signature on a platform) is met. This eliminates payment delays and ensures adherence to agreed-upon terms, fostering trust between parties.
- Verifiable Freelancer Identity and Work History: Blockchain could create a verifiable record of a freelancer's work, client reviews, and payment history, building a trustworthy reputation within the gig economy. This could also extend to verifying the authenticity and ownership of creative assets.
- IP Rights Management: A blockchain could also serve as an immutable record of intellectual property creation and licensing, providing timestamped proof of ownership and usage rights, drastically simplifying disputes and ensuring fair compensation for creators. Our article on protecting your creative work delves deeper into this. ### Integrated Client Relationship Management (CRM) and Project Management The future of invoicing will be deeply integrated with how freelancers manage their client relationships and projects. * Single Source of Truth: Imagine an invoicing system that pulls data directly from your CRM (client details, contact history) and project management tool (project scope, milestones, deliverables, tracked time). This means invoices are generated instantly and accurately, reflecting all agreed-upon terms and completed work.
- Automated Proposal-to-Invoice Workflow: After a proposal is accepted, the system automatically converts it into a project plan and generates an initial deposit invoice. As project milestones are met, subsequent invoices are automatically triggered.
- Client Portals: Integrated systems will offer dedicated client portals where clients can review proposals, track project progress, approve deliverables, make payments, and view their invoice history. This increases transparency and reduces email back-and-forth.
- Feedback Loops: Data from invoicing (e.g., on-time payments, client disputes) can feedback into the CRM, providing insights into client reliability and profitability, helping freelancers make informed decisions about future collaborations. This is particularly valuable for remote professionals who rely heavily on digital communication. These technological advancements promise to transform invoicing from a necessary administrative evil into a powerful, intelligent, and integrated component of a creative professional's business operations. The goal is to make the payment process invisible, allowing freelancers to focus on what they do best: creating stunning photo, video, and audio content. How digital nomad platforms like ours help to centralize such aspects is also transforming. --- ## 4. Best Practices for Professional Invoicing in the Gig Economy While future technologies promise significant changes, there are foundational best practices that every photo, video, and audio professional should adopt today to ensure efficient, clear, and timely remuneration. These strategies are particularly important for digital nomads navigating various legal and financial systems. ### A. Clarity and Detail are Paramount Your invoice is not just a request for payment; it's a legal document and a detailed record of the services provided. Precision prevents disputes. 1. Contact Information: Your Details: Full name/company name, address, phone, email, website. If incorporated, include your legal business number. Client Details: Exact company name, contact person, billing address, phone, email. Ensure all details are current and correctly spelled.
2. Unique Invoice Number: Assign a unique, sequential invoice number to each invoice. This aids in tracking, accounting, and communication. A common format is INV-YYYYMMDD-001.
3. Invoice Date and Due Date: Clearly state when the invoice was issued and when payment is expected (e.g., "Net 15," "Due upon receipt," or a specific date).
4. Detailed Line Items: This is where creative professionals need to excel. Specific Service Description: Don't just write "Video Production." Instead, specify: "Pre-production: Concept development, scriptwriting, location scouting (15 hours @ $X/hr)" "Filming Day Rate: 8 hours on-site at [Location], including equipment rental for [Camera Type] and lighting kit." "Post-production: Video Editing (10 hours @ $X/hr), Color Grading, Sound Mixing, Motion Graphics (30 seconds)." "Image Retouching: 25 high-resolution images for [Client Project Name]." "Licensing Fee: Unlimited web usage rights for 1 year for 5 final video assets." "Consultation Fee: 2 hours of strategic planning via video call." Quantities and Rates: Clearly state the number of units (hours, days, images, videos) and the agreed-upon rate per unit. * Subtotals: Provide subtotals for different categories of work if applicable (e.g., Production Phase, Post-Production Phase).
5. Taxes and Discounts: Itemize any applicable taxes (e.g., VAT, sales tax) and clearly show any discounts applied. State the tax identification number if necessary for compliance, particularly for international clients.
6. Total Amount Due: Bold and prominent.
7. Payment Instructions: Explicitly state accepted payment methods (bank transfer, PayPal, Stripe, etc.), account details, and any necessary unique identifiers for international payments (SWIFT/BIC, IBAN). Give clear instructions on how to pay. ### B. Standardized Templates and Automation Consistency not only saves time but also projects professionalism. * Branded Templates: Use professional, branded invoice templates that incorporate your logo, brand colors, and contact information. This reinforces your professional image.
- Saved Line Items: Utilize invoicing software features to save frequently used service descriptions and rates. This drastically speeds up invoice creation for recurring tasks like "Podcast Episode Editing (Standard Package)" or "Headshot Photography Session (Basic)."
- Recurring Invoices: For retainer clients or ongoing service agreements, set up recurring invoices to be generated and sent automatically.
- Automated Reminders: Configure your invoicing system to send polite, automated reminders to clients when an invoice is due or overdue. This minimizes awkward manual follow-ups for remote professionals. ### C. Clear Payment Terms and Policies Communicating payment expectations upfront is crucial. * Payment Due Date: Be clear about your payment terms (e.g., "Net 30" meaning payment due within 30 days of the invoice date). For new clients or smaller projects, consider "Due Upon Receipt" or "Net 7/14."
- Late Payment Penalties: Include a clause about late fees from the outset. While you might choose not to enforce it every time, having it in your contract and on the invoice provides. Common terms are a percentage of the outstanding amount per month or a fixed late fee.
- Upfront Deposits/Retainers: For larger projects, always require an upfront deposit (e.g., 25-50%) before work commences. This covers initial expenses and signals client commitment. This is a crucial cash flow management strategy.
- Milestone Payments: For lengthy projects, structure payments around concrete milestones. This ensures you're paid incrementally as work progresses and reduces your financial risk.
- Payment Methods: Clearly state the payment methods you accept and any associated fees your client might incur (e.g., covering PayPal fees for international transactions).
- Refund Policy: If applicable, state your refund policy or cancellation terms. ### D. Digital Submission and Record Keeping Embrace digital workflows for efficiency and security. * PDF Invoices: Send invoices as professional PDF documents. Avoid editable formats.
- Cloud Storage: Keep digital copies of all invoices, proposals, contracts, and communication in a well-organized cloud storage system (e.g., Google Drive, Dropbox). This is vital for easy access and disaster recovery, especially for digital nomads moving between locations like Ho Chi Minh City and Kyiv.
- Accounting Software Integration: Ideally, your invoicing tool should integrate with your accounting software to avoid manual data entry and simplify tax preparation. Our guide on essential tools for freelancers recommends several options. By adhering to these best practices, creative gig workers can significantly improve their financial health, build stronger client relationships, and spend less time on administration, ultimately focusing more on their craft. --- ## 5. Integrating Project Management with Invoicing for Creative Professionals For photo, video, and audio production, the line between project management and invoicing is often blurred. Efficient project execution directly impacts accurate billing. An integrated approach ensures nothing falls through the cracks and streamlines the entire workflow from proposal to payment. Our platform helps freelancers find projects where these integrations are valued by clients. ### A. The Benefits of Integration Integrating project management with invoicing offers numerous advantages: * Accuracy: Reduces the likelihood of billing errors by automatically pulling project data (time logs, completed tasks, agreed-upon scope) directly into the invoice.
- Efficiency: Automates invoice generation as milestones are met or projects are completed, saving valuable administrative time.
- Transparency: Provides a clear audit trail from initial project brief to final payment, benefiting both the freelancer and the client. Clients can easily see what they're paying for against the work delivered.
- Improved Cash Flow: Ensures timely invoicing and follow-ups, which are critical for maintaining healthy cash flow for remote workers.
- Better Reporting: Enables financial reporting alongside project profitability analysis, helping you understand which types of projects and clients are most lucrative. ### B. Practical Integration Strategies Here’s how creative professionals can practically integrate their project management and invoicing: 1. Choose Integrated Platforms: All-in-One Solutions: Some platforms, like HoneyBook, Dubsado, or Plutio, are designed specifically for creative freelancers and small businesses. They offer CRM, project management, proposals, contracts, time tracking, and invoicing all within a single ecosystem. This is often the most straightforward approach for maximum integration. API Integrations: If you prefer best-of-breed tools, look for platforms that seamlessly connect via APIs. For example, a project management tool like Asana or Trello might integrate with an invoicing tool like FreshBooks or QuickBooks. Many remote-friendly tools cater to this, as discussed in our remote work tools guide. Zapier/Make (formerly Integromat): For more complex integrations between disparate tools, automation platforms like Zapier or Make can create custom workflows. For instance, "When a task is marked 'complete' in Asana, create a time entry in Toggl Track, and update a line item in an awaiting invoice in FreshBooks." 2. Time Tracking as the Foundation: Mandatory for Hourly Projects: If you bill hourly, time tracking is non-negotiable. Tools like Toggl Track, Clockify, or Harvest (which integrates directly with invoicing features) allow you to track time per client, per project, and even per specific task within a project. Even for Fixed-Price Projects: Even if billing a fixed rate, tracking time helps you understand project profitability, optimize your workflow, and accurately quote future projects. It also provides data for defending your fixed price if a client argues it's too high. Detailed Annotations: Encourage detailed annotations within your time tracker (e.g., "Editing first rough cut of Brand X promo video," "Color grading for Client Y product shots"). This detail translates directly to transparent invoice line items. 3. Milestone-Based Billing & Deliverable Tracking: Define Milestones Upfront: In your proposal and contract, clearly define project milestones and the payment schedule tied to each. For a videographer, milestones might include "Script & Storyboard Approval," "Shooting Complete," "Rough Cut Approval," and "Final Delivery." Project Management Task Linking: Link tasks in your project management system directly to these milestones. When a milestone task is completed and approved by the client, it signals the readiness for the next invoice. Automated Invoice Triggers: Some integrated platforms can be set up to automatically generate and send an invoice once a specific milestone or task status is marked as 'complete' and client approval is received. This removes manual intervention. 4. Asset Delivery & Proof of Work: Link to Deliverables: Future invoicing systems could potentially link directly to the cloud storage (e.g., Google Drive, Box, Vimeo private links, WeTransfer download links) where the actual creative assets are delivered. This provides undeniable proof of work and delivery. Pre-Invoice Delivery Confirmation: Before sending the final invoice, ensure formal written or system-based client approval of the final deliverables. This prevents disputes over the quality or completion of work after the invoice is sent. ### C. Customization for Creative Fleelancers Recognize that "one size fits all" doesn't apply. Creative freelancers often require specific features: Usage Rights and Licensing Fields: Look for or advocate for invoicing systems that include dedicated fields for detailing intellectual property rights, usage licenses, duration, and geographic scope.
- Revisions Tracking: Often, a certain number of revisions are included in a fixed price. The system should track these and allow for additional billing for out-of-scope revisions.
- Sub-Contractor Management: If you collaborate with other freelancers (e.g., a videographer hiring a drone operator or a sound designer), the system should easily manage their expenses and potentially incorporate them into client invoices. By proactively integrating project management workflows with their invoicing processes, photo, video, and audio professionals can create a highly efficient, transparent, and less error-prone system that supports their creative output and financial stability. This is particularly important when working with diverse teams in different time zones, like those found through our talent platform. --- ## 6. Global Payment Gateways and Currency Management Operating in the gig economy for creative production means working with clients across the globe. This necessitates a sophisticated understanding of global payment gateways and effective currency management. Navigating this is crucial for professionals living and working in different countries, perhaps moving from Prague to Rio de Janeiro. ### A. Popular Global Payment Gateways Each gateway has its pros and cons, particularly concerning fees, speed, and country availability. 1. PayPal: Pros: Widely accepted globally, easy setup, consumer familiarity, buyer/seller protection (with limitations). Cons: Higher transaction fees (especially for international and currency conversion, which can be 3-4% or more), funds can be held, less suitable for large B2B payments due to fees. Best for: Smaller payments, consumer clients, global reach where other options are limited. 2. Stripe: Pros: Developer-friendly, API, competitive transaction fees (often lower than PayPal for direct credit card processing), supports recurring payments, excellent for integrating directly into your website. Supports a wide range of currencies. Cons: Requires more technical setup for direct integration, less familiar to non-tech-savvy clients than PayPal. Best for: Online businesses, those valuing integration and lower fees for direct card payments, clients preferring credit card payments. 3. Wise (formerly TransferWise): Pros: Specializes in international money transfers with significantly lower fees and more transparent exchange rates (mid-market rate) compared to traditional banks. Offers multi-currency accounts with local banking details for many countries (e.g., USD, EUR, GBP, AUD), making it feel like a local transfer for international clients. Fast transfer times. Cons: Not a payment gateway in the traditional sense, but a transfer service. Clients might need to set up a Wise account or perform a bank transfer if they don't have local currency accounts. Best for: Receiving large international payments from business clients, digital nomads managing multiple currencies, paying international subcontractors. 4. Bank Wire Transfers (SWIFT/IBAN): Pros: Secure, reliable for large sums, universally available. Cons: Often slow (several days), high fees (for both sender and receiver, often fixed fees which can hit small amounts hard), exchange rates can be unfavorable. Best for: Very large, infrequent payments where security is paramount and speed is not a critical factor. ### B. Strategic Currency Management Dealing with multiple currencies requires a strategy to minimize losses due to exchange rate fluctuations and bank fees. 1. Clearly Define Invoicing Currency: Before the Project: Always agree on the invoicing currency before starting the project. Will it be your local currency, the client's local currency, or a stable international currency like USD or EUR? Contractual Agreement: Bake this into your freelance contract to avoid future disputes.
2. Multi-Currency Bank Accounts: Dedicated Accounts: Consider opening multi-currency accounts with services like Wise or Revolut Business. These allow you to receive payments in foreign currencies without immediate conversion. For example, if you're a European freelancer billing a US client in USD, you can receive USD directly into a USD account without your bank automatically converting it to EUR at a potentially unfavorable rate. Hold Funds: This enables you to hold foreign currency and convert it when the exchange rate is more favorable, or use it to pay expenses in that same currency.
3. Factor in Exchange Rate Risk: Estimate Fluctuation: For long-term projects, consider the potential for currency fluctuations. If the client wants to pay in their local currency, and it's volatile, you might want to add a small buffer to your quote or agree on an exchange rate peg. Invoice in Stronger Currency: If possible, invoice in a strong, stable currency (e.g., USD, EUR, GBP) to protect your earnings.
4. Transparency of Fees: Who Pays What?: Clearly state in your invoice and contract who is responsible for transaction fees (sender, receiver, or split). Often, the agreement is that the client covers transfer fees from their end, and you cover any fees on your receiving end. "All Fees Our Responsibility" Request: Some clients might request that the freelancer is responsible for all fees, meaning the net amount received must match the invoice total. Be aware of this and adjust your pricing accordingly if you accept these terms.
5. Utilize Financial Tools: Forex Trackers: Use apps or websites to monitor exchange rates and inform your conversion decisions. Invoicing Software with Multi-Currency Support: Choose invoicing software that supports multiple currencies and can automatically convert amounts or track invoices in their original currency. Managing global payments and currencies effectively is not just about reducing costs; it's about financial predictability and maintaining good relationships with diverse international clients. For a remote team working across continents, these considerations become central to operational success, as highlighted in our guide to remote team collaboration. --- ## 7. Legal and Tax Considerations for Creative Invoicing Beyond simply sending a bill, creative professionals in the gig economy must navigate a complex web of legal and tax obligations. These considerations are even more pronounced for digital nomads who might be working across multiple jurisdictions. Ignoring them can lead to significant penalties, disputes, and financial distress. ### A. Legal Frameworks for Invoicing 1. Contracts are Paramount: The Foundation: Every project, regardless of size, should be preceded by a clear, written contract. This contract sets the terms for payment, deliverables, scope, intellectual property rights, revisions, and dispute resolution. The invoice then reflects the agreed-upon terms of this contract. Payment Terms: The contract should clearly state your payment terms, including due dates, late fees, and methods of payment. Intellectual Property (IP) Transfer: Crucially for photo, video, and audio work, the contract must detail the transfer of IP, usage rights, and licensing terms. Does the client own the final product outright? Do they have a limited license? Are you retaining rights for your portfolio? This directly impacts what you can bill for. Our article on intellectual property for creatives provides more specific advice. Scope of Work: A detailed Statement of Work (SOW) within the contract prevents scope creep and defines what will be billed. Any work outside this scope should trigger a change order and an updated invoice.
2. Invoice as a Legal Document: Binding Agreement: Once a client accepts your terms and you deliver the work, the invoice acts as a formal record of the financial transaction. In many jurisdictions, it's a legally binding request for payment. Proof of Debt: If payment isn't received, a properly structured invoice, backed by a contract, is essential evidence for pursuing payment through collection agencies or legal means.
3. Data Privacy (GDPR, CCPA, etc.): Client Information: Your invoicing process handles sensitive client data. Ensure compliance with data privacy regulations like GDPR (for EU clients) or CCPA (for California clients) regarding how you store and process personal information. Secure Systems: Use secure, reputable invoicing systems that encrypt data and protect against breaches. For more info, check our data privacy guide. ### B. Navigating Tax Obligations Taxation for self-employed individuals and digital nomads is notoriously complex. Proper invoicing is foundational to accurate tax reporting. 1. Understanding Your Tax Residency: Nomadic Challenges: If you're a digital nomad, your tax residency might not be straightforward. It depends on factors like where you spend most of your time, where your "center of vital interests" lies, and specific tax treaties between countries. This dictates which country's tax laws you must follow for your global income. * Double Taxation: Be aware of potential double taxation and how tax treaties might alleviate it.
2. VAT/Sales Tax/GST: Jurisdictional Nuances: For creative services, the rules for VAT (Value Added Tax), sales tax, or GST (Goods and Services Tax) vary significantly by country and even by state/province. Client Location vs. Service Location: The location of your client, the location where the service is predominantly performed, and your residency can all influence whether and what type of consumption tax you need to charge. * B2B vs. B2C: