taxInvoice.appInvoice vs receipt: what's the difference?
Short answer: An invoice is sent before payment to request it: it shows what is owed, by when and how to pay. A receipt is issued after payment to prove it was made: it shows the amount paid, the date and the payment method. Many businesses send an invoice first and a receipt once paid; shops often issue a combined bill or receipt at the till.
| Invoice | Receipt | |
|---|---|---|
| Purpose | Requests payment | Confirms payment |
| When | Before payment (or with goods) | After payment |
| Key fields | Number, due date, payment details, amount owed | Amount paid, date paid, payment method |
| Tax rules | Tax invoices must meet GST or VAT rules | Must meet tax rules only if used as a tax invoice |
| Typical users | Freelancers, B2B suppliers | Shops, landlords, cash sales |
When you need each
- Service businesses and freelancers: send an invoice, then a receipt or “paid” invoice.
- Shops and counters: a single bill or receipt at the point of sale. In India this is often a short GST bill on an 80mm printer.
- Landlords: rent receipts confirm rent was paid. Tenants in India use them for HRA claims.
- Proformas: a proforma invoice is neither: it is a quote before the sale.
Free tools for this
Frequently asked questions
Is a receipt a tax invoice?
Not automatically. A shop receipt can count as a tax invoice only if it includes the details required by your GST or VAT rules, such as the seller's tax number.
Do I need to give a receipt if I already sent an invoice?
It is good practice, and customers often ask for one. You can also mark the invoice as paid and send it again.