Invoice vs Receipt: What's the Difference?
An invoice asks for payment. A receipt confirms that payment has been received. They often contain similar details, but they are sent at different moments and serve different purposes.
Side by side
| Invoice | Receipt | |
|---|---|---|
| Purpose | Request payment | Prove payment |
| When | After (or before) delivering goods or services | After payment |
| Shows | Amount due and due date | Amount paid, date and method |
| Typical use | B2B, freelancers, services | Shops, cash and card sales |
When to send an invoice
Send an invoice when a client pays later, for example after a project milestone or at the end of the month. In the EU, VAT-registered businesses supplying other businesses are generally required to issue an invoice.
When to send a receipt
Send a receipt when a customer has paid immediately, or when a client asks for confirmation that an invoice has been paid.
Can one document be both?
Yes. Many businesses mark a paid invoice as "Paid" and add the payment date, which then works as a receipt. In Billowly you can do this by adding a note such as "Paid on 15 Oct 2026 by bank transfer".