Receipt or tax invoice: what is the difference?

1. Identify what the document proves

A receipt evidences payment. A tax invoice serves VAT purposes and follows the VAT tax point, which does not always coincide with collection. Section 86

A correctly issued combined receipt/tax invoice can fulfil both purposes. A billing request or bank transfer slip is not automatically a tax invoice.

2. Check the particulars

For a full tax invoice, review the heading, seller and buyer details, number, date, description, value, separately shown VAT and required additional particulars. Section 86/4 · Notification 39

• Match the buyer’s business name and address.
• Check required tax-identification and head-office or branch details.
• Link documents to actual delivery and payment.
• Ask the issuer to correct errors; do not alter the document yourself.

This is a starting checklist, not a complete specification for every document format.

3. Check input VAT eligibility

Input VAT is VAT charged on goods or services acquired for the business. A registered operator can deduct eligible input VAT under the applicable rules. Sections 82/3 and 82/4

Restrictions include materially defective invoices, non-business transactions, qualifying entertainment expenses and invoices issued without entitlement. Review both documentation and the transaction. Section 82/5

4. Separate accounting, income tax and VAT

A payment may be an expense, inventory, an asset or another item. Corporate income-tax deductibility needs a separate review.

The lack of a VAT tax invoice alone does not settle income-tax deductibility. Review whether the cost is genuine, business-related and traceable to the payee, together with other statutory restrictions. A tax invoice does not turn personal spending into a business deduction. Section 65 ter, including (3), (13) and (18)

5. Keep the transaction records together

Suggested workflow: link the agreement or order, delivery evidence, receipt, relevant tax invoice and payment record using a common reference.

• Give the supplier correct business details.
• Check particulars and amounts before passing documents on.
• Track missing evidence separately; do not claim VAT from a bank transfer alone.
• For an abbreviated invoice, ask about a full invoice and verify entitlement before claiming. Do not assume interchangeability.

Related: Returns and output VAT adjustments