Invoice vs receipt — what's the difference?
The difference between an invoice and a receipt in the UK, when to issue each, and how VAT invoices and simplified receipts fit in.
Last updated 14/06/2026
Invoices and receipts both document a sale, but they do opposite jobs and happen at different points in the transaction.
The short answer
- An invoice is a request for payment — issued before you’ve been paid. It shows what’s owed and when it’s due.
- A receipt is proof of payment — issued after payment is made. It confirms the money has changed hands.
Side by side
| Invoice | Receipt | |
|---|---|---|
| Purpose | Requests payment | Confirms payment |
| Issued | Before payment | After payment |
| Shows | Amount due, due date | Amount paid, date paid |
| Used for | Getting paid, your sales records | Proof of purchase, the buyer’s records |
How they fit together
The usual flow is: you send an invoice, the customer pays, then you (optionally) issue a receipt or simply mark the invoice as paid. For ongoing records, the invoice is the document that matters most for your bookkeeping and VAT.
Where VAT comes in
If your customer is VAT registered and wants to reclaim the VAT, they generally need a proper VAT invoice showing your VAT number, the rate and the VAT amount — see what a VAT invoice must include. For small sales of £250 or less (including VAT), a simplified VAT invoice — often in the form of a receipt — can be enough, as long as it carries the required VAT details.
Not VAT registered? Then neither your invoice nor your receipt shows VAT — see invoicing without VAT.
Make your invoice first
Start with a clean, professional invoice in the generator — then a receipt is just confirmation that it’s been paid.
Frequently asked questions
Is an invoice the same as a receipt?
No. An invoice is a request for payment, sent before you're paid. A receipt is proof that payment has been made, given after you're paid. They serve opposite ends of the same transaction.
Do I need to give a receipt as well as an invoice?
Not always, but it's good practice — once an invoice is paid, a receipt (or marking the invoice "paid") confirms it to the customer and tidies up both sets of records.
Can a receipt be used to reclaim VAT?
To reclaim VAT a customer normally needs a VAT invoice. For small amounts (£250 or less including VAT) a simplified VAT invoice — often in receipt form — can be enough, provided it shows the required VAT details.
Ready to create your invoice?
Open the free generator →General information, not tax advice. Always check current HMRC guidance or consult an accountant.