Giving your customer a receipt for a sale helps you:

  • follow the law
  • build trust with customers
  • avoid disputes.

The difference between an invoice and a receipt

Receipts and invoices are both documents you give to customers who buy from you. While they both show details of a sale, they have slightly different purposes:

  • An invoice tells the customer what they owe before they pay. Businesses registered for goods and services tax (GST) must give customers a special type of invoice called a tax invoice.
  • A receipt shows what the customer paid for after the sale.

In most retail and online sales, the invoice also acts as a receipt because payment occurs at the time of the sale.

Types of receipts

You can give these types of receipts to your customers when they pay you:

  • goods and services (GST) tax invoice, if you’re registered for GST
  • regular invoice, if you’re not registered for GST
  • cash register receipt
  • handwritten receipt
  • digital receipt.

When you need to give a receipt

Under Australian Consumer Law (ACL), you must give a receipt:

  • at the time of the sale for purchases over $75 (excluding GST)
  • within 7 days of a customer asking for one if the purchase is under $75 (excluding GST).

It’s good practice to offer receipts to customers at the time of the sale, no matter the amount.

What to include on a receipt

All receipts must include:

  • your business name your Australian Business Number (ABN) or Australian Company Number (ACN)
  • the date of the sale
  • details of the goods or services
  • the price of the goods or services.

If you’re issuing a tax invoice as a receipt, there’s extra information you need to include.

Proof of purchase

You can ask a customer for proof of purchase if they request a refund, repair or replacement.

This does not have to be a receipt. The ACL allows other documents to act as proof of purchase. These documents usually show details like the date, the supplier and the amount paid.

Some examples of proof of purchase:

  • a receipt or invoice
  • a credit or debit card statement
  • a lay-by agreement
  • a receipt number or reference number (for phone or internet sale)
  • a warranty card showing the supplier’s or manufacturer’s details, date and amount of the purchase
  • a serial or production number linked to the purchase on the supplier’s or manufacturer’s database
  • a copy or photograph of the receipt.

Itemised bills for services

Customers can ask for an itemised bill for up to 30 days after getting the original bill or invoice for a service. You must give this free of charge within 7 days of their request.

An itemised bill must show:

  • how you worked out the price
  • the number of labour hours and hourly rate (if relevant)
  • a list of materials used, and the amount charged for them (if relevant).

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