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Invoice vs receipt: the request and the proof

An invoice is a request for payment issued before the money arrives, stating what was supplied, how much is owed and by when. A receipt is proof that payment was received, issued after the money arrives. A paid invoice marked paid can serve as a receipt, but the two answer different questions for the buyer.

The same sale usually produces both documents, one before payment and one after. Mixing them up leads to customers paying twice or having nothing to show their accountant.

Nuwan Madhusanka · Co-founder

4 min read · Published 13 October 2026

Invoice and receipt compared
	Invoice	Receipt
Issued	Before payment	After payment
Purpose	Request payment	Prove payment
Key fields	Items, total, due date, how to pay	Amount paid, date paid, method
Tax role in Australia	A tax invoice supports a GST credit claim	Records the payment for both sides
Status words	Issued, sent, overdue, paid, void	Paid in full or part payment
Who keeps it	Buyer for payables, seller for receivables	Buyer as proof, seller for reconciliation

Two moments in one sale

An invoice is created when the seller has delivered, or is about to deliver, and wants to be paid. It lists the goods or services, the amounts, any GST, the total, the due date and how to pay. A receipt is created when the payment lands. It states how much was received, when, by what method and against which invoice. Shops that are paid on the spot usually skip the invoice and hand over a receipt, which in that case also shows the items. Service businesses usually issue an invoice first and a receipt or a paid confirmation later.

What the ATO cares about

For GST, the important document is the tax invoice. The ATO requires a tax invoice to show that it is a tax invoice, the seller's identity and ABN, the date, a description of what was sold, the GST amount or that the total includes GST, and for sales of 1,000 dollars or more the buyer's identity or ABN. A registered business that sells goods or services must provide one within 28 days if the customer asks, unless the sale was 82.50 dollars or less including GST. A receipt that carries all of those details can double as a tax invoice, which is why retail receipts often say tax invoice at the top.

Linking the two

Good practice is to reference the invoice number on the receipt, so either party can match payment to debt in seconds. When a customer pays part of an invoice, the receipt should show the amount received and the balance still owing. Accounting software and payment processors usually do this automatically, sending a receipt by email once a card payment succeeds and marking the invoice as paid in the ledger.

Common mistakes

Sending a second invoice instead of a receipt after payment confuses customers into paying again. Issuing a receipt before the money has cleared can leave a business with a document saying paid for a transfer that bounced. Omitting the invoice number from a receipt makes reconciliation slow. And calling a quote an invoice, or an invoice a receipt, causes problems with tax claims because the document does not say what the reader needs it to say.

Where it shows up in the product

Invoices have their own editor and their own numbers in the INV-0001 style, with statuses draft, issued, sent, viewed, overdue, paid and void, and an invoice can be marked paid by hand when money arrives by bank transfer. A pay link opens a public page with the amount due, the items, the PDF and the bank details, and Pay now opens Stripe Checkout through the owner's connected Stripe account. After a card payment, the return page shows a thank you card with a receipt link.

Questions people ask

Can an invoice be used as a receipt?

A paid invoice can serve as evidence of payment if it is clearly marked paid with the date and amount received. Many small businesses send the original invoice back stamped paid. A separate receipt is clearer when payment was partial, came from a different person, or covered several invoices, because it records exactly what money arrived and when.

Is a receipt required by law in Australia?

Businesses must give a proof of transaction for goods or services of 75 dollars or more excluding GST under the Australian Consumer Law, and on request for smaller amounts. A receipt, a tax invoice or a bank statement entry can serve, depending on the case. Registered businesses must also give a tax invoice within 28 days when asked, unless the sale was 82.50 dollars or less including GST.

Do I need both an invoice and a receipt for my tax records?

To claim a GST credit you generally need a tax invoice for purchases over 82.50 dollars including GST. For income tax, you need records that show the expense and that it was paid. An invoice plus a bank statement entry often covers both. A receipt is the simplest proof of payment, so keeping both is the safe habit.

Does a card payment send a receipt automatically?

Usually yes. Card processors such as Stripe can email a receipt when a payment succeeds, depending on the account's settings. That receipt shows the amount, date and card details but not always the items, so it complements the invoice rather than replacing it. Keep the invoice for what was bought and the receipt for proof it was paid.

What is the difference between a receipt and a tax invoice?

A tax invoice is defined by GST law and must contain specific details, including the seller's ABN and the GST amount. A receipt is any record of payment. A single document can be both if it carries the tax invoice details and records the payment, which is common in retail where the sale and payment happen together.

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Sources

Written and checked by the OneCraft team. Last checked 13 October 2026.