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
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