A receipt is proof that a purchase happened: the date, the seller, what was bought and how much VAT was charged. For a private purchase it is what you need for a return or a warranty claim. For a business expense it is what makes the cost deductible and the VAT reclaimable, which is why a lost receipt is a lost deduction. In this article you can read which details have to be on it, how long to keep it and how to stop losing them.
Contents
Receipt or invoice?
A receipt records that a payment was made, usually at the till and usually without naming the buyer. An invoice is addressed to a specific customer and carries their details, which is what allows VAT to be reclaimed in full. That difference matters above a certain amount: for larger business purchases a receipt may not be enough, and you have to ask the seller for an invoice in your company’s name. Below that threshold a receipt normally suffices, and the threshold is set nationally.
What has to be on it
- The date of the purchase
- The seller’s name and, for business use, their VAT number
- What was bought, in enough detail to tell what kind of expense it is
- The amount, and the VAT split out by rate
The VAT split is the field people overlook. A receipt showing only a total makes it impossible to reclaim the right amount, and a mixed purchase with two rates on one receipt has to show both.
Returns and warranties
For a return or a warranty claim the receipt is the evidence of when and where you bought something. A shop can ask for it, and a bank statement is a weaker substitute because it shows the payment rather than the product. A photograph of the receipt is usually accepted, which is a good reason to take one before the thermal paper fades.
Receipts in your administration
A business receipt becomes a cost entry, and if an employee paid it personally, a claim as well. That means it needs a general ledger account, a VAT code and, where you use them, a cost centre. Small amounts, lots of documents and often a colleague who is not in the office: receipts are administratively the most annoying document type there is, which is precisely why they are worth automating.
How long to keep them
Business receipts fall under the statutory retention period for business records, which is set per country and runs to several years in most of Europe. A digital copy is generally accepted as long as it stays readable and complete, so scanning and then discarding the paper is allowed in most cases. Conditions differ, so confirm what applies to your administration with your accountant. Storing them also falls under the European data protection rules where personal data is involved.
How to stop losing them
Photograph the receipt at the counter rather than collecting paper for the end of the month. In TriFact365 a colleague does that in the mobile app, the data is read and a booking proposal is prepared, and after your check the journal entry goes to your accounting package with the image attached. The receipt stays searchable in the archive for the retention period. Reimbursing the employee runs through your creditors administration or payroll, not through the app. Read more about the app for photographing receipts, about expense claims from submission to journal entry, or about how the scanning process runs.
Frequently asked questions
A receipt records that a payment was made, usually without naming the buyer. An invoice is addressed to a specific customer and carries their details, which is what allows VAT to be reclaimed in full. Above a nationally set amount a receipt may not be enough for a business purchase.
Usually yes for smaller amounts, provided the receipt shows the VAT split by rate and the seller’s VAT number. A receipt showing only a total makes it impossible to reclaim the right amount, and for larger purchases you generally need an invoice in your company’s name.
In most European countries a digital copy is accepted for the statutory retention period as long as it stays readable and complete. Conditions differ per country, so confirm what applies to your administration with your accountant.
It is the strongest evidence of when and where you bought something, and a shop can ask for it. A bank statement is a weaker substitute because it shows the payment rather than the product. A photograph is usually accepted.
Most till receipts are printed on thermal paper, where heat rather than ink creates the text. Light and warmth erase it, sometimes within weeks. Photographing the receipt on the day you get it is the only reliable answer.
