Quick answer
An invoice is a request for payment — it’s issued before the customer pays, creates a debt, and states what’s owed and by when. A receipt is proof that payment has been made — it’s issued after the money changes hands. The invoice comes first; the receipt closes the loop. Under Australian Consumer Law you must provide proof of transaction for purchases of $75 or more (ex GST), and a tax invoice on request for GST purposes.
Invoice vs receipt: side by side
| Invoice | Receipt | |
|---|---|---|
| Issued | Before payment | After payment |
| Purpose | Request payment | Confirm payment |
| Shows amount owing? | Yes, with due date | No — shows amount paid |
| Used for GST credit? | Yes (valid tax invoice) | No, on its own |
| Proof of | The agreement / debt | The transaction settled |
What an invoice must include
If you’re GST-registered, an invoice should be a valid tax invoice: the words “Tax Invoice”, your business name and ABN, a unique invoice number, the date, a description of what was supplied, the total, and the GST amount. Over $1,000 it also needs the buyer’s identity or ABN. The full list is in what must be on a tax invoice.
What a receipt must include
A receipt (proof of transaction) is simpler but still needs to clearly show:
- Your business name and ABN
- The date payment was made
- What was purchased
- The amount paid (and GST included, if registered)
Under Australian Consumer Law you must give proof of transaction for any sale of $75 or more excluding GST, and you must provide one within seven days if a customer asks for a smaller purchase.
Do you need to issue both?
It depends on how you get paid:
- Paid on the spot: one document can do both jobs — an invoice marked “Paid” with the payment date is proof of both the sale and the payment.
- Account customers who pay later: send the invoice first, then issue a receipt (or mark the invoice paid) once the money clears.
In Free Invoice App, every invoice moves through Draft → Sent → Paid. Marking it paid timestamps the payment, so the same document becomes your proof of receipt — no separate paperwork to manage.
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Frequently asked questions
What is the difference between an invoice and a receipt?
An invoice requests payment and creates a debt; a receipt proves payment has been made. The invoice comes first, the receipt confirms the transaction is settled.
Do I have to give a customer a receipt in Australia?
You must provide proof of transaction for purchases of $75 or more (ex GST), and within seven days on request for smaller amounts, under Australian Consumer Law.
Can one document be both an invoice and a receipt?
Yes — when a customer pays on the spot, an invoice marked “Paid” with the payment date serves as both. Account customers usually get an invoice first, then a receipt.
Does a receipt need to show GST?
To claim a GST credit a customer needs a valid tax invoice, not just a receipt. A receipt confirms payment; the tax invoice substantiates the GST. Provide a tax invoice on request for purchases over $82.50 including GST.