Difference Between Invoice and Receipt
The main difference between invoice and receipt is found in the moment in which the provider gives them to the consumer and in their purpose; the invoice has a tax character, but the receipt does not.
However, despite their differences, it should be noted that the two concepts refer to a document that has the objective of informing us about the cost of a good or service. Therefore, it is the suppliers of goods and services who provide us with these documents. To understand it better, we will see them separately.
We will always be provided with a receipt after making a purchase, as proof of the payment made. In this document, a series of data may appear, such as the price of the good or service, the date and the description of the product that we have purchased, the taxes to be paid and shipping costs, if applicable. It is proof of that purchase.
On the other hand, the invoice is a somewhat more complex document because it has a tax purpose, not just information. Its function is to justify that this commercial operation has been carried out, to later pay some taxes, it serves as proof of tax collection. Unlike the receipt, it is normally issued before the payment is made. In an invoice we can find data such as the invoice number, date, supplier information, etc.
Invoices can be used to track payments, and receipts to record payments, since, as explained, the receipt is issued after payment and the invoice before.
Normally, a receipt does not have a breakdown of the taxes for each product, however, the type of tax for each product purchased is detailed on the invoice.
Example to differentiate between invoice and receipt
If we are going to buy at the supermarket, when paying for our products, the cashier will give us a proof of purchase, which we have called a receipt. However, if we carry out a reform at home, before paying, the masons will provide us with an invoice to inform us of the price of the service. After these transactions, only the masons, having issued an invoice, will be able to justify that they have collected those taxes, the receipt, on the other hand, is rather informative, which could be used to return the product.