Understanding the difference: Tax Invoices vs Eftpos Payment Receipts
When you shop in-store and pay by card, you usually get two receipts: a Tax Invoice and an Eftpos Payment Receipt. While they may look similar, they serve distinct purposes. Knowing how they differ is crucial, even though it can often be confusing.
Tax Invoices
A Tax Invoice is an essential document issued by a seller to a buyer, providing a detailed record of the transaction for tax and accounting purposes. Businesses must issue tax invoices for taxable sales.
What a Tax Invoice Includes:
Business Information:
Seller: Name, address, and contact details
Buyer: Name and address
Invoice Details:
Invoice number
Issue date
Product/Service Information:
Description of goods or services
Quantity, unit price, and total amount
Tax Information:
GST (Goods and Services Tax) details
Total payable amount (including GST)
Example of a Tax Invoice:
Eftpos Payment Receipts
An Eftpos Payment Receipt confirms a payment has been made via an Electronic Funds Transfer at Point of Sale (Eftpos). It’s a quick acknowledgment that the payment went through successfully.
What an Eftpos Receipt Includes:
Transaction Details:
Date and time
Payment method and card type
Business Information:
Merchant’s name and contact information
Amount Information:
Total amount paid
Approval or decline status
Example of an Eftpos Payment Receipt:
Key Differences
Why It Matters
Tax Invoice: Critical for accounting records and claiming tax or GST.
Eftpos Receipt: Helpful as a supplementary record, especially for verifying payments, such as card surcharges.
Important: While an Eftpos receipt confirms payment, it cannot replace a Tax Invoice, which provides the full breakdown required for tax and accounting purposes.
Good Practice Example: Tax Invoice submitted with Eftpos receipt for complete documentation.
Bad Practice Example: Relying solely on an Eftpos receipt, which lacks necessary details for tax purposes.
