Game developer invoice template

How do game developers usually invoice?

Freelance game developers invoice studios per milestone from a work agreement or by the day for shorter engagements, with 30 day terms and the studio's project code on every invoice. Many studios are publisher funded and pay against milestone acceptance, so the invoice names the milestone and the build version delivered. Revenue share deals are documented separately and are not invoiced in the usual way.

Game developers in this example give the customer 30 days to pay, after a 30% deposit taken before the work starts. Hourly rates run from £40 to £100. A full day is typically £350 to £750.

What should a game developer put on an invoice?

Beyond the legal basics, game developers should:

• Name the milestone and the build or commit delivered so acceptance is unambiguous.
• Quote the studio's project code and the work agreement reference.
• Separate day-rate support work from milestone fees.
• Record the IP and licence terms agreed; studios expect a full assignment and the invoice can reference it.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do game developers charge VAT?

You only charge VAT once registered, which is compulsory when taxable turnover passes £90,000 in any rolling 12 months. Below that, show no VAT line and no VAT number. Once registered, digital and IT services are standard rated at 20% for UK clients; services to business clients outside the UK are generally outside the scope of UK VAT, so note that on the invoice and charge none.

On the Flat Rate Scheme the sector for game developers is usually “Computer and IT consultancy or data processing” at 14.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.