We deal with a variety of financial documents on a daily basis, such as named invoices and receipts. For many people who are considering starting a business or already have one, distinguishing between these two documents can be crucial. However, it’s not difficult – find out for yourself.
What a name invoice looks like – basic information
A named invoice is a document that contains specific information about a business transaction. The main elements of a named invoice are the details of the counterparty, such as the name or company name, the address of the registered office, TIN and REGON in the case of companies. In addition, a named invo ice contains detailed information about the goods or services, the date of issue and the invoice number.
Usually invoices are issued when there is a transaction between two companies. However, regulations also allow an invoice to be issued when there is a transaction between a business and an individual. If the individual is not a VAT payer and is not in business, a named invoice is issued.
Receipt – a document that we receive every day
A receipt , on the other hand, is a shorter document than an invoice. It contains basic information, such as the name of the seller, the date of purchase, the total amount of the transaction and any VAT. The receipt is useful primarily for individual customers who are not registered for VAT.
Receipt versus name invoice – key differences
- Nature of the document – A named invoice is a more formal document that confirms a business transaction, while a receipt is more simplistic and is mainly used to confirm a purchase.
- Information contained on the document – A named invoice contains detailed information about the counterparty, goods/services, date of issue and invoice number, while a receipt contains basic information such as the name of the seller, date of purchase and transaction total.
- Tax requirements – A named invoice is required for tax purposes, and also serves as an accounting document for businesses. A receipt can provide proof of purchase, but cannot always be used for VAT deduction.
- Document length – A named invoice is usually longer, containing more details about the transaction, while a receipt is shorter and more concise.
- Acceptance – A named invoice is accepted by tax authorities as a full-fledged transactional document, while a receipt is more of a confirmation of purchase for the customer.
- Document storage – A named invoice usually should be kept for a certain period of time for tax and accounting purposes, while a receipt can serve as proof of purchase, but ultimately does not need to be kept for a long time.
Virtual office vs. invoices and receipts
In the context of running a virtual office, knowing the difference between a named invoice and a receipt can be important, especially if a company offers a wide range of services that require a variety of financial documents. Using IT systems that facilitate the issuance of named invoices and receipts can help streamline accounting processes and prevent mistakes or inaccuracies in documentation.