Payment Receipt vs Sales Receipt

DO YOU KNOW THE DIFFERENCE?

A payment receipt is a proof of payment. It is mostly for the buyer rather than for the business. It is typically not used in accounting. A payment receipt lets a buyer be sure that their payment was received by the business.

A sales receipt (a.k.a invoice,) is a bill or (request for payment if that payment has not already happened). Sales receipts must contain a more detailed breakdown of the costs and taxes involved, as well as information about the business.

CRA (Canada Revenue Agency) requires you to have a sales receipt with the following information to back up your claims for taxes or ITC’s (Input Tax Credits) for HST

      • Business Name or Trade name
      • Date of transaction
      • An indication of the total amount of HST
      • An indication of which items are taxed at the GST rate and which are taxed at the applicable HST rate
      • Business number

For transactions of more than $150.00

      • The buyer’s name must be on the invoice. Which means that if you are claiming this as a business expense the name on the invoice must be the business name and not your personal name.
      • A brief description of the goods or services
      • The terms of payment

For more information visit https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html#H2_219