No booking without a receipt—this is a key principle for German companies. Receipts are the foundation of accounting. Companies record every business transaction with receipts: income, expenses, withdrawals, and inventory lists.

In addition, since January 1, 2020, German tax authorities have enforced the so-called “receipt requirement,” which states that all companies are obligated to issue receipts to customers, with a few exceptions (Section 146a, Paragraph 2 of the Tax Code).

Below, we explain what a receipt is and what it must contain. You will also learn more about the different types of receipts, what the difference is between internal and external receipts, and more.

What’s in this article?

• What is a receipt?
  
• What information must a receipt contain?
  
• What are the different types of receipts?
  
• What is the difference between internal and external receipts?
  
• What is the difference between a receipt and an invoice?
  

What is a receipt?

“Receipt” is a collective term for documents that contain important data about transactions and processes within a company. There are many types of receipts, including invoices, bills, and credit notes. You must always issue a receipt when your company’s assets change (i.e., income or expenses). But you must also create corresponding receipts during inventory or business withdrawals.

Receipts are particularly important for documentation, tax traceability, and internal controls within a company. According to Section 257 of the German Commercial Code (HGB), companies in Germany must properly retain accounting receipts for 10 years.

Obligation to retain receipts

Every company must archive all receipts as part of its retention obligation. According to Section 6, Clause 3 of the Cash Register Security Ordinance, both digital and paper receipts are legally valid. The company has to ensure no one can change the digital document. The company should also store the respective receipt in its original, sent form.

Stripe helps you digitize your receipts. Companies can use Stripe Invoicing, for example, to easily create digital invoices and send them to customers within minutes. Invoicing enables businesses to make quick payments, even for global transactions. This allows them to customize, scale, and automate their accounting processes.

The digital future of receipts

Digital receipts are becoming increasingly accepted and offer advantages for companies and recipients:

• Environmental responsibility: By eliminating the need for paper receipts, digital receipts reduce environmental impact and promote sustainable business processes.

• Cost savings: Digital receipts significantly reduce the costs of printing, storage, and shipping.

• Efficient processing: Digital receipts are easier to store, archive, and search, which improves accounting and data security.

• Better customer service: Customers can easily view and retrieve receipts via email or customer portals, which increases user-friendliness.

• Fast processing: Companies send digital receipts instantly, reducing transaction time and enabling faster payments.

In addition, digital receipts enable the use of tools like Stripe Revenue Recognition for the optimization of accrual accounting. Our solution makes accounting even faster and more accurate. Easily automate and configure revenue reports and ensure compliance with the guidelines of the revenue recognition standards IFRS 15 and ASC 606.

What information must a receipt contain?

Since there are many different types of receipts, the information required also varies. However, you must always include:

• Company name and address
  
• Tax or value-added tax (VAT) identification number of the company issuing the receipt
  
• Process name
  
• Creation date
  
• Amount
  

In addition, depending on the type of receipt, you might need to include further information, such as the reason for the entertainment on an entertainment receipt or the mileage at the start and end of the trip in a logbook.

What are the different types of receipts?

Companies use receipts to document both financial transactions and a variety of internal processes. Since the types of transactions and processes vary, the documents to record them also vary. The term “receipt,” for example, includes invoices as well as reversal receipts and rental agreements. Therefore, the contents of the documents differ.

The four examples below show the different required content of various receipts:

Cash register receipt

The cash register receipt serves as proof of the purchase of a product and usually contains information such as the item purchased, price, and VAT.

Cash register receipts play a role in both private and corporate accounting. Customers should store them for reimbursement of expenses or for warranty purposes. For companies, the cash register receipt is important to claim expenses for tax purposes and to ensure clear documentation of purchasing or sales transactions.

A cash register receipt should contain this information:

• Name and address of the seller
  
• Date and time
  
• Service description, including quantity
  
• Total amount
  
• Tax rate
  
• Sequential invoice number
  
• Serial number of the cash register
  
• Signature counter of the cash register system
  
• Test value
  

Delivery note

The delivery note documents the handover of goods between suppliers and customers. Delivery notes contain important information about the delivered goods—such as quantity, type, and any special features—and they provide an overview of incoming goods.

Companies often use delivery notes in combination with invoices because they confirm the goods have arrived as ordered. This is particularly important in business logistics to keep track of orders and deliveries.

A delivery note should contain:

• Name and address of seller and customer
  
• Date of issue
  
• Delivery date
  
• Service description, including quantity
  
• Customer signature or stamp (to confirm receipt of goods, if possible)
  

Credit note

A credit note is a statement a company uses to refund or reimburse its customers. Companies issue it when a refund, discount, or correction of the original invoice amount is necessary.

These contents are usually found on a credit note:

• Identification as credit note
  
• Name and address of the seller
  
• Name and address of the buyer
  
• Tax number or VAT identification number
  
• Creation date
  
• Sequential invoice number
  
• Service description
  
• Tax rate
  
• Total amount
  

Inventory list

An inventory list is a list of all the goods, materials, and assets a company owns at a given point in time. Companies use it to record the current inventory and determine the actual value of the inventory.

An inventory list usually contains:

• Unique item descriptions
  
• Item numbers
  
• Units of measurement
  
• Number of pieces
  
• Storage locations
  

What is the difference between internal and external receipts?

Internal receipts

Internal receipts come from within the company and document internal processes. These include, for example, pay slips or material withdrawal slips. Internal receipts can also be used if no external receipts are available.

Internal receipts are often of great importance for internal control and business management, as they make processes within the company traceable. They serve as the basis for accounting and the internal coordination of business transactions.

Internal receipts can be:

• Outgoing invoices
  
• Withdrawal receipts
  
• Inventory lists
  
• Payroll accounting
  
• Cash books
  
• Logbooks
  
• Reversal receipts
  
• Depreciation receipts
  
• Receipts
  
• Cash register receipts
  

External receipts

External receipts, on the other hand, come from outside the company and document transactions with external business partners, such as suppliers or customers. Typical examples are invoices, bills, or bank statements.

External receipts are important for accounting purposes as they document the exchange of goods or services, and the law requires companies to use them to ensure tax traceability. While internal receipts are often only relevant for the company, external receipts are indispensable for communication with external bodies, such as the tax office or suppliers.

External receipts can be:

• Incoming invoices
  
• Delivery notes for incoming goods
  
• Bank statements
  
• Rental agreements
  
• Postal receipts
  
• Checks
  
• Hospitality receipts
  
• Tax assessments
  
• Receipts
  
• Cash register receipts
  

Emergency receipts: Used only in exceptional cases

In addition to the internal and external receipts, there are also the so-called “emergency receipts,” also known as “replacement receipts.” Companies can create these if they can no longer find the original receipt or if no receipt is available (e.g., for tips or automated teller machine [ATM] payments). Creating emergency receipts is harmless for small amounts of up to €250 gross.

However, use them with caution—if you frequently replace original receipts with emergency receipts, this can lead to problems with the tax office.

What is the difference between a receipt and an invoice?

The differences between an invoice and a receipt lie in their definition, function, and scope of application within accounting. While both documents record the processes and evidence of financial transactions, there are significant differences in their legal significance, structure, and role in accounting.

Invoice

Invoices are a special form of receipt. They are created to request payment when goods or services are provided. Compared to general receipts, an invoice meets specific requirements in terms of content and form in order to be legally valid and to comply with the legal requirements of accounting.

An invoice and a receipt are required to contain different information, with the invoice requiring significantly more mandatory information. In addition, unlike the receipt, the invoice has the function of clearly presenting services and listing associated costs.

A properly issued invoice is a document for billing between buyer and seller, serves as legal proof in business transactions, and is important for meeting tax requirements.
Find out more about electronic invoices and their requirements.

Receipt

Receipts, on the other hand, are of great importance for correctly documenting a company’s financial transactions and being able to properly prove all business transactions. A receipt confirms a payment made and serves as the basis for accounting. It also facilitates the transparency and traceability of financial flows.

Receipts are the basic requirement for claiming input tax deduction. For smaller amounts, it is sufficient if you submit a receipt and not an invoice to the tax office. If a receipt contains all the information required for an invoice, a receipt can replace an invoice.

Receipts must always be signed by the recipient of the payment. If you note on an invoice that a customer has paid, an invoice can become proof of payment and, thus, a receipt.