Invoice vs Receipt
What is the difference between an invoice and a receipt? We explain when to use each in your UK business.
Table of Contents
What is an invoice?
An invoice is a request for payment. It is sent before the customer pays and shows how much they owe, what they owe it for and when payment is due.
An invoice is a legal document that forms part of your accounting records. It must include specific information to be valid, especially if you are VAT-registered.
What is a receipt?
A receipt is a confirmation of payment. It is issued after the customer has paid and shows how much was paid, when and for what.
A receipt proves the transaction is complete. While not always legally required, issuing receipts is good practice and helps with customer trust and dispute resolution.
When to use each
Send an invoice when you want the customer to pay. Issue a receipt when the customer has paid. In many cases, you send an invoice first and then a receipt once payment is received.
With digital invoicing software, paid invoices are automatically marked as paid, serving as both invoice and receipt in one document.
Send invoices and record payments in one place
Track which invoices are paid and send receipts automatically.
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