Invoicing the federal government: what is a “proper invoice”?
Federal agencies pay on a “proper invoice”. If something is missing, they can send the invoice back, and the payment clock does not start.
What a proper invoice contains
The clause FAR 52.232-25 (Prompt Payment) lists the contents, unless your contract says otherwise:
- Name and address of the contractor.
- Invoice date and invoice number.
- Contract number or other authorization (for example a task or delivery order number).
- Description, quantity, unit of measure, unit price and extended price of the supplies delivered or services performed.
- Shipping and payment terms.
- Name and address of the contractor official to whom payment is to be sent.
- Name (where practicable), title, phone number and mailing address of the person to notify in the event of a defective invoice.
- The taxpayer identification number (TIN) and, if the contract requires it, the electronic funds transfer (EFT) banking information.
- Any other information or documentation the contract requires.
When payment is due
Under the Prompt Payment rules a federal payment is generally due 30 days after the agency receives a proper invoice (or after acceptance of the work, if later). A defective invoice is returned promptly, and the clock starts again with a corrected one. Always check your own contract for deviations.
How to submit
Many agencies require electronic submission, most often through the Treasury’s Invoice Processing Platform (IPP); others use their own system. Contractors usually need to be registered in the System for Award Management (SAM) as well. Upload a clean PDF and keep the confirmation.
With Invoice Studio
Use the PO number and contract number fields, add a contact person and your payment terms, and put your EIN in the footer. Export the PDF and upload it to the portal.
Frequently asked questions
How long does the government have to pay?
Generally 30 days after receipt of a proper invoice, or after acceptance if later. Your contract may say otherwise.
What is IPP?
The Invoice Processing Platform is the Treasury’s online system many federal agencies use to receive and process invoices.
Do I need a TIN on the invoice?
FAR 52.232-25 lists the TIN among the contents of a proper invoice. Follow the instructions in your contract.
Related
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- Payment terms (Net 30)Invoice payment terms explained: Net 30, Due on Receipt, 2/10 net 30
- Keeping invoicesHow long to keep invoices and business records
- Step-by-step guideHow to create an invoice in 10 steps
This page is general information as of October 2026. Rules differ by state and industry; check your situation with a tax professional or your state’s revenue department.