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How to create and send an invoice on PayPal

Your accountant will thank you.
November 29, 2022

You’d be hard-pressed to find an online store that doesn’t accept PayPal. In the world of e-commerce transactions, PayPal is still the reigning champion, despite having been around a long time and with the emergence of wannabe competitors snipping at their heels. It’s easy to set up an account, you can apply for a debit card, and collecting payments is easy. Sending money is also straightforward, and the fees are reasonable enough. But business owners can take advantage of an additional service, which is sending out invoices to customers. Here’s how to create and send an invoice on PayPal.

Read more: How to cancel a PayPal payment before it’s too late


You need a business account to create and send an invoice on PayPal. On the desktop site, either click Invoicing in the Quick links section or go to Pay & Get Paid > Invoicing > Create & Manage Invoices. Click Create Invoice and fill out all the sections before sending. It is possible to send a basic invoice in the PayPal app, but you need the business PayPal app for more invoicing features.


How to create and send a PayPal invoice (desktop)

Creating and sending a PayPal invoice on the desktop website is much easier. You can access the invoicing area either by clicking Invoicing in the Quick links section or by going to Pay & Get Paid > Invoicing > Create & Manage Invoices.

paypal main screen invoicing links

First, click the settings icon where you can enter various data from your business. This will save and auto-populate into your future invoices, so you don’t have to keep retyping them. When you’re ready, click Create Invoice. Create Batch Invoice is something totally different – it’s for a CSV file full of customers who all need to be invoiced all at once. This is outside the scope of this article.

paypal invoice information

Now it’s a simple case of filling out all the relevant information.

  • You first need to set the correct currency.
  • Then add the email address of the customer you’re invoicing.
  • Under Items, list what you’re invoicing for and the fee. You can also break down the tax if necessary.
  • Add an invoice number, invoice date, and payment due date.
  • You can also add any discounts.
paypal invoice template

Further down, there’s a bit more to look at:

  • Add terms of conditions and a reference number.
  • Attach an attachment (a file or an image).
  • A message to the customer.
paypal template further options

When the invoice has been completed, go back to the top of the page. The three vertical dots will show that you can share a direct web link to the invoice. The eye icon will show you what the invoice will look like at the customer’s end so you can make sure everything is accurate.

When everything is finished, click Send to send the invoice. You will receive an email notification that it has been sent and when it has been paid.

paypal invoice sending options

How to create and send a PayPal invoice (mobile app)

It is possible to also send an invoice via the PayPal app. However, you can only send a basic invoice on the regular app. You would need to download the PayPal business app for a more advanced invoice, like on the desktop site.


Sending and managing PayPal invoices is free. However, PayPal business account owners have to pay a fee when the invoice has been paid. In the US, it is 3.49% and $0.49 per transaction. If the payment is coming from another country, an additional 1.5% is charged, and a fixed fee is based on the currency you received. When converting the payments to your local currency, the exchange rate is 3% higher than usual.

Ask for the payment to be made as a ‘friends and family’ payment. Then the fee won’t be charged.