Invoice vs receipt: what is the difference?

The short answer

You send an invoice before you are paid, to request payment. You give a receipt after you are paid, to confirm it. Many businesses send both.

What goes on each

• Invoice: invoice number, date, your and the customer's details, items, tax, total due, due date and how to pay.
• Receipt: receipt number, date paid, amount received, payment method, what it was for, and the invoice it settles.

Is a paid invoice a receipt?

An invoice marked "Paid" with the payment date and method works as proof of payment for most customers. For cash sales, shops usually issue a receipt (or a simplified tax invoice) on the spot.

How long to keep them

Keep both for as long as your tax office requires: for example 6 years in the UK and Ireland, 5 years in Australia, Singapore, South Africa and the UAE, 6 years in Canada, 7 years in New Zealand, and 72 months after the annual return due date under GST in India.

In Fliss Invoice

Record a payment against an invoice and it is marked paid, with the date and method on the PDF, so it doubles as a receipt for your customer.