An invoice is a document a seller sends to a buyer asking for payment for goods or services. It says what was provided, the price of each part, and the total amount owed. It is sent before the money is paid, or at the time of the sale when payment is due later. Sending an invoice does not mean the money has been paid — it means the money is owed.
A receipt is a document that proves payment was made. It is given after the money is paid. It shows what was paid for, how much was paid, and the date it was paid.
First the invoice (the ask), then the payment, then the receipt (the proof).
| Invoice | Receipt | |
|---|---|---|
| What it does | Asks for payment | Proves payment happened |
| When you get it | Before payment | After payment |
| The money | Still owed | Already paid |
A repair shop fixes a dryer. The invoice lists: labor, 3 hours × $40 = $120; new belt, $25. The invoice total is $120 + $25 = $145. The customer pays $145. The receipt then shows: dryer repair, paid $145, with the date. The receipt's total matches the invoice's total — that match is how you know the bill was settled in full.
A receipt is not a bill. If you are holding a receipt, the money was already paid. Some sellers stamp "Paid" on a copy of the invoice after payment; a copy marked "Paid" can then work as proof of payment too.
The IRS counts both invoices and receipts among the "supporting documents" for a business — the papers that support the entries in your books and on your tax return, so keep them in an orderly fashion and in a safe place.
For money coming in (gross receipts), the IRS lists receipt books and invoices among the documents that show the amounts and sources of the income.
For things bought and for expenses, the IRS says supporting documents should identify who was paid, the amount paid, proof of payment, and the date.
So one sale can honestly need both papers: the invoice shows what was charged, and the receipt (or another proof of payment) shows it was actually paid.
Internal Revenue Service, "What kind of records should I keep" (irs.gov).
Checked November 2026.