Glossary Receipt

A receipt is a written document by which the payee confirms the receipt of a sum of money. It serves as proof of payment in everyday situations and in accounting, particularly for cash payments. Unlike an invoice, a receipt typically documents only the payment made, not the delivery of goods or the provision of a service within the meaning of Section 14 of the German VAT Act (UStG).

Contents and formal requirements of a receipt

There is no single legally prescribed standard form for a valid receipt as there is for an invoice under Section 14 of the UStG; nevertheless, certain details should always be included so that the receipt is recognised as an accounting document:

• Issuer: Name and, if applicable, address of the person or company issuing the receipt.
• Recipient: Name of the paying customer, if required (e.g. for larger amounts or for allocation).
• Amount: Payment amount in euros, ideally shown both numerically and in words.
• Date: Date of payment.
• Reason for payment: Short description of the service or business transaction (e.g. “computer repair”).
• Signature: Confirmation by the recipient of the payment or by the issuer.

Tip: For accounting and later proof to the tax office it is sensible to ensure completeness and legibility and, if applicable, to note invoice numbers or the period in which the service was provided.

Practical cases and accounting treatment

In daily practice freelancers and small businesses encounter receipts mainly for cash payments or expense reimbursements. For correct posting the following points apply:

Receipt as an accounting document

• Receipts are admissible documents for business expenses and must be recorded in the accounting records.
• For the income surplus calculation (EÜR) the receipt serves as evidence for deductible expenses.
• For documentation purposes receipts should be filed chronologically and with a reference to the account posting.

Input VAT deduction and the distinction to an invoice

Important is the distinction regarding input VAT: to deduct VAT you need a proper invoice in accordance with Section 14 of the UStG. a simple receipt is not sufficient for this. If VAT is shown on a receipt, this is legally problematic because only invoices establish the entitlement to input VAT.

Practical examples

Concrete use cases illustrate the usefulness and limits of the receipt:

• Cash payment to a tradesperson: You pay €120 in cash for a minor repair. The tradesperson issues a receipt showing amount, date, description of the service and signature. You file this receipt as a business expense. Input VAT can only be claimed if you additionally receive a formal invoice.
• Reimbursement of expenses by a client: A freelancer is reimbursed by a client for cash outlays. The receipts for the expenses serve as proof to the client and as the basis for reimbursement and for the freelancer’s own bookkeeping.
• Small-amount rule: For amounts up to €250 (net) a simple voucher is sufficient; nevertheless a complete receipt is recommended to avoid later queries.

Retention obligations and legal notes

Receipts are subject to tax retention obligations. Under Section 147 of the Fiscal Code (AO §147) and supplementary case law business documents, which include receipts, generally must be retained for ten years if they are relevant to accounting. For received and sent business letters a six-year period usually applies; for posting documents the ten-year period is decisive.

Also observe the GoBD: receipts created or stored electronically or scanned must be archived in a tamper-proof manner. Cash register receipts must also be posted daily as part of cash register record-keeping and handled with particular care for cash transactions.

Practical checklist:

• Number receipts immediately or assign a booking reference.
• Always request a receipt for cash payments, even for small amounts.
• Keep receipts legible or scan and store them in a GoBD-compliant, audit-proof manner.
• If VAT is shown, request a correct invoice in addition if you intend to claim input VAT.

Clean document management with complete receipts greatly simplifies accounting, reduces audit risks with the tax office and ensures transparency in your business processes.