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