What Is a Receipt?
Business Terms
Explained Simply
An invoice asks for payment; a receipt confirms it was made. A receipt normally shows the date, the seller, the amount paid and how it was paid. For VAT, the document that matters is the tax invoice: SARS states that without a proper tax invoice a business cannot deduct input tax. According to SARS, a full tax invoice is required when the consideration is more than R5,000, an abridged tax invoice may be used at R5,000 or less, and no tax invoice is needed for R50 or less, where a till slip or sales docket showing the VAT is enough. A till slip can therefore double as a receipt, but a receipt alone is not automatically a valid tax invoice. Keep receipts for business purchases, because they support your expense claims.
Need to issue one? Use the receipt generator.
Related Terms
- InvoiceAn invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.
- VAT (Value-Added Tax)VAT is a consumption tax of 15% levied on most goods and services in South Africa, collected by businesses on behalf of SARS.
- Accounts ReceivableAccounts receivable (also called debtors) is the money owed to a business by its customers for goods or services that have been delivered but not yet paid for.