Invoice vs receipt
Invoice = “please pay me”. Receipt = “thank you, I received payment”. Both are important, but they serve different purposes.
When to issue a receipt
Section 26 of the Consumer Protection Act 68 of 2008 requires suppliers to provide consumers with written proof of a transaction. In practice, receipts are expected in these situations:
- Cash payments, because the client needs proof they paid
- Deposit payments, to confirm the deposit was received
- Final payment on a project, as proof the balance is settled
- When the client requests one. You must comply under the CPA
- When the payment doesn't match an invoice (e.g., partial payment)
What a receipt must include
- Your business name and contact details
- Client name
- Receipt number (for your records and theirs)
- Date payment was received
- Amount received
- Payment method (EFT, cash, card, mobile payment)
- Description of what the payment was for
- Reference to the original invoice (if applicable)
- Running balance (if partial payment)
Example receipt
RECEIPT #REC-2026-042
Zinhle's Cleaning Services
12 Bree Street, Cape Town
Tel: 076 123 4567
Received from: Mrs Botha
Date: 25 March 2026
Payment method: EFT
For: Deep cleaning, 3 bedroom house (Ref: INV-2026-038)
Amount received: R2,800.00
PAYMENT RECEIVED IN FULL. THANK YOU
Receipt vs tax invoice vs proof of payment
Receipt
Issued by the seller to confirm payment was received. A commercial document, not governed by the VAT Act.
Tax Invoice
Required by Section 20 of the VAT Act 89 of 1991 for VAT-registered businesses. Must include specific fields. Issued before or at the time of supply.
Proof of Payment (POP)
A bank-generated document showing a transfer was made. The buyer usually provides this to the seller. It confirms the money left the buyer's account but doesn't confirm receipt.
Common receipt mistakes
- Not issuing a receipt for cash payments. This leads to disputes
- Using the invoice as a receipt. An unpaid invoice is not proof of payment
- Missing the payment method. Important for reconciliation
- No reference to the original invoice. This makes bookkeeping harder
How wabill handles receipts
wabill does not currently generate a separate receipt PDF. When you mark an invoice as paid, the invoice PDF updates with a green PAID badge and shows the amount paid and payment date. For most clients, the paid invoice serves as proof of payment. A dedicated receipt document type is a planned feature.
10 free invoice documents to start, then R150/month.
FAQ
What is the difference between a receipt and an invoice?
An invoice requests payment. It's sent before payment is made. A receipt confirms payment. It's issued after payment is received. An invoice says 'please pay me R5,000'. A receipt says 'thank you, I received R5,000'.
Must I issue receipts in South Africa?
The Consumer Protection Act 68 of 2008 (Section 26) requires suppliers to provide proof of transaction to consumers. For business-to-business, a paid invoice typically serves as a receipt. If a client requests a receipt, you should provide one.
Can I create a receipt for free?
Yes. Use the free receipt generator on this page: enter who paid, the amount, the payment method, and what it was for, then download a professional receipt PDF marked PAID. It runs entirely in your browser with no signup.
What information must a receipt include?
A receipt should include: your business name, the client's name, the date of payment, the amount received, the payment method (EFT, cash, card), what the payment was for, and a receipt number for your records.
10 free documents. No card needed.