Updated
Invoice vs receipt vs bill: the difference in simple words
Short answer: An invoice asks for money. A receipt proves the money was paid. A bill is the paper a seller gives for a sale, and for the buyer it is the amount to pay. If you need proof of payment, ask for a receipt.
A momo shop example
A café orders 200 momos from a supplier on credit. The supplier sends an invoice: "200 momos, Rs 20,000, pay in 15 days". When the café pays, the supplier gives a receipt: "Rs 20,000 received". To the café, the same invoice is a bill it has to pay. A customer who buys one plate at the counter gets a bill, which often already shows that it was paid.
Side by side
| Invoice | Receipt | Bill | |
|---|---|---|---|
| Who sends it | Seller | Seller | Seller (counter paper) |
| What it says | "Please pay this amount" | "We received your payment" | "This is what you bought" |
| When | Before payment | After payment | At the time of sale |
| Proves payment? | No | Yes | Only if marked paid |
| Typical use | Credit sales, services, B2B | Any paid sale, rent, fees | Shops, cafes, counters |
What every one of them should show
- Seller name, address and PAN or VAT number
- Buyer name
- A unique number and the date
- Items, quantity and rate, then tax, discount and the total
- Invoice: due date and how to pay. Receipt: how it was paid.
Tax rules differ by business. If you are VAT-registered, confirm the required format with your accountant or the Inland Revenue Department.
Need one now? Make a free invoice, receipt or bill →
Questions
Is a bill the same as an invoice?
Often people use them for the same thing, but they are not identical. An invoice is a request for payment sent by the seller. A bill, for the person paying, is the same paper seen from the other side. In many Nepali shops, "bill" simply means the paper given at the counter.
Which one proves that I have paid?
A receipt. An invoice or bill only says money is owed. Keep the receipt.
Do I need an invoice if the customer pays on the spot?
You still need a record of the sale. A single bill that shows the payment can do both jobs. For credit sales (Udharo), issue an invoice first and a receipt when the money arrives.
Can I make all three for free?
Yes, with the BillSil free generator. Pick the type, fill in the details, then download the PDF or email it.