Why use delivery notes, cash bills, receipts, and tax invoices?

These four documents serve different purposes: a delivery note confirms that goods have been delivered; a cash bill/receipt confirms that payment has been received; and a tax invoice confirms that Value Added Tax (VAT) has been charged for VAT-registered businesses.

Comparison table

Document	Main purpose	When issued	Tax use
Delivery Note	Confirms that goods have been delivered to the buyer	When goods are delivered	Not directly eligible for input VAT deduction
Cash Bill	Simple evidence of a sale and payment received	When a sale is made and cash is received/payment is made immediately	Not a tax invoice, so VAT cannot be claimed
Receipt	Confirms that the seller has received payment	As soon as payment is received, under Section 105 of the Revenue Code	Can be used as evidence of expenses, but not for VAT deduction
Tax Invoice	Shows the price before VAT, 7% VAT, and the total amount including VAT	VAT-registered businesses must issue it when selling goods or services	VAT-registered buyers can use it to claim input VAT

Delivery Note

A delivery note is issued when goods are shipped so that the recipient can check whether the correct items have been received in full. It should generally include the seller’s/buyer’s name, document number, delivery date, item details, quantity, and the recipient’s signature. It does not need to show VAT because it is not a payment document or tax document.

Cash Bill

A cash bill is simple evidence of a sale and payment received. It is commonly used by shops or small businesses and has no legally fixed format. However, if it is to be used as evidence of a business expense, it should contain complete information, such as the seller’s name/address/tax ID, date, item details, amount, and buyer information.

Example: A customer buys goods at a shop and pays immediately. The shop issues a “cash bill.” However, if the customer is a company that needs to claim VAT, it must request a “tax invoice” instead.

Receipt

A receipt answers the question: “Has payment been received?” It can be issued for a sale of goods, provision of services, or debt repayment. The person receiving payment should issue it immediately upon receiving the money. A receipt may be issued together with a tax invoice or combined into a “Tax Invoice/Receipt.”

Tax Invoice

A tax invoice is an important VAT document. VAT-registered businesses must prepare and provide it to buyers when selling goods or providing services. VAT-registered buyers can use a valid tax invoice as evidence to claim input VAT.

Important information generally required includes:

Name, address, and tax identification number of both seller and buyer
Tax invoice number and date of issue
Description of goods/services, quantity, and price
Value before tax, VAT amount, and total value

Which and When document to use?

Deliver goods before collecting payment: Issue a delivery note first, then issue a tax invoice/receipt when requesting or receiving payment.
Retail sale with immediate payment, not VAT-registered: Use a cash bill or receipt.
Selling to a company or a buyer that needs to claim VAT: Issue a tax invoice, usually together with a receipt.
Receiving a deposit or debt repayment: Issue a receipt to confirm payment has been received.

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Important note

• A cash bill cannot replace a tax invoice for claiming VAT.
• A business that is not VAT-registered has no right to issue a tax invoice.

Summary

Having bills, receipts, and delivery notes helps standardize business operations. They serve as evidence to prevent disputes, confirm goods delivery and payment received, and are important accounting documents for accurately summarizing sales and tracking receivables.

Bills, Receipts, Delivery Notes