We’ve asked our bookkeeper friend, Robin, to answer some common accounting questions.
What’s the difference between a receipt and a tax invoice?
Basically, a tax invoice tells you what you have to pay and a receipt tells you what you have already paid.
An invoice is only a tax invoice if it contains the following information:
- the words” tax invoice”
- the name of the seller
- the seller’s ABN
- the date of the sale
- a brief description of the item/s sold, including quantity
- the amount of GST, or the words “GST included” if it is part of the total price
If the invoice is not a tax invoice (because it is from someone who is not registered for GST) it contains the following information:
- the name of the seller
- the date of the sale
- a brief description of the item/s sold, including quantity
- the total price
A receipt is proof that payment has been made. It will include most of the same information as an invoice.
It is important to keep receipts and invoices for everything you have paid for to do with your business.
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