Key takeaways
- An invoice asks for payment; a receipt confirms that payment happened. Some documents do both.
- For your records, the IRS lists both as supporting documents, and wants to see the payee, amount, proof of payment, date and what it was for.
- A UK invoice must include a unique reference number, the supply date and invoice date, a description, and the amount, VAT and total.
- An invoice alone doesn't prove you paid, and proof of payment alone doesn't show what you bought, so keep both when you have them.
A receipt says "you paid." An invoice says "you owe." That is the difference in one line, and it's the one worth remembering when you sort your paperwork.
The words get mixed up in daily life, though. Vendors send a "paid invoice," a "receipt" that lists a balance, or an "order confirmation" that is neither. This post sorts out what each document is for, what each should show, and which ones to keep.
Invoice: a request for payment
An invoice comes from the seller, usually before you pay. It lists what was supplied and what is owed, and often says when payment is due.
GOV.UK lists what a UK invoice must include:
- a unique reference number,
- the seller's name, address and contact details,
- the customer's name and address,
- a description of what is being charged for,
- the date of supply and the date of the invoice,
- the amount charged, any VAT, and the total owed.
Sole traders should include their own name, plus any trading name. If both seller and customer are VAT-registered, a more detailed VAT invoice is required, and GOV.UK says it must carry the seller's VAT number and show the VAT separately from the price.
Invoice rules differ between countries, so check the one where you trade. If you need to know how to write one, that is a separate topic from keeping them.
Receipt: proof that a payment happened
A receipt comes after payment. It confirms that money changed hands: who was paid, how much, and when. A till slip, an emailed "thanks for your payment" and a card terminal printout are all receipts of a kind.
A good receipt often also shows what was bought, which is why it can stand in for an invoice on a small purchase. A receipt that only reads "Payment received: $63.40" is thinner, because it doesn't tell you what the money was for.
Where they overlap
Plenty of documents blur the line:
| Document | What it is |
|---|---|
| Invoice marked "Paid" | An invoice that also works as a receipt |
| Subscription "receipt" from a software company | Usually an invoice-style document sent after the charge |
| Order confirmation | Shows what you bought, but often doesn't prove payment went through |
| Card statement line | Proof of payment, with little detail on what it was for |
Don't worry about the label. Ask what the document shows.
What to keep for your records
The IRS lists both documents among the supporting papers that back up your books and return: sales slips, paid bills, invoices, receipts, deposit slips and canceled checks. For each expense, it says the documents should show:
- who you paid,
- the amount,
- proof of payment,
- the date, and
- what it was for.
An invoice usually covers who, how much, when and what. It may not show that you paid. A receipt or card statement covers the payment. The IRS notes that you may need a combination of documents to cover all five, and Publication 583 warns that proof of payment alone doesn't establish a deduction.
In practice:
- Bought something small in a shop? The receipt is enough.
- Paid a supplier or contractor? Keep the invoice and the proof you paid it.
- Pay for software by card? Keep the emailed invoice or receipt. A statement alone won't say what the charge was for.
- Sold something to a customer? Your own invoices are income records. Keep copies of the ones you issue, and what you were paid.
If a receipt goes missing, see our post on deducting an expense without a receipt. For how long to hold on to either, see how long to keep receipts.
A filing habit that handles both
Treat the two documents as one family and file them together:
- Save every invoice and receipt to the same folder, by year.
- Name files by date and vendor, for example
2026-10-03 Notion invoice 12.00 USD. - When a paid receipt arrives for an invoice you already filed, save it next to the invoice, or note the payment date in your sheet.
- Log each one in a spreadsheet with a link to the file. Our post on a simple expense tracker in Google Sheets has a layout.
Most of these documents show up by email. ExpenseCatcher reads forwarded invoices and receipts, files them in Drive and logs a row in a Google Sheet, with a column for the document type, so invoices and receipts can be told apart. The getting started guide explains the setup. It handles documents you receive, not ones you create: ExpenseCatcher does not make or send invoices.
The short version
Invoice: "please pay this." Receipt: "thanks, paid." Keep whichever combination shows who, how much, when, what and proof of payment. When in doubt, keep both.
This is general information, not tax or legal advice. Ask an accountant about the records your own situation needs.
Frequently asked questions
Is an invoice a receipt?+
Not by itself. An invoice is a request for payment. Once it's paid, many vendors mark it as paid or send a separate receipt, and a paid invoice can work as both.
Which one should I keep for taxes?+
Keep whatever shows the five details the IRS lists: payee, amount, proof of payment, date and purpose. Often that means the invoice plus the receipt or a card statement.
What is a VAT invoice?+
In the UK, if you and your customer are both VAT-registered, you must issue a VAT invoice, which needs more detail than a standard one, including your VAT number and the VAT shown separately from the price.
Sources
General information, not tax, legal or financial advice. Rules differ by country and change over time — check with an accountant or your tax authority for your situation. How we write.