Professional Receipt Requirements: Tax Compliance

By Nishikant Xalxo | Tax Compliance Expert | Updated: January 10, 2025 | 9 min read

After my small business was audited over improper receipts, I learned what makes them legally valid. Whether you're a freelancer, shop owner, or just need proper records, here's what receipts must include.

Required Fields (All Countries)

Mandatory for legal validity:

Business name and address
Date of transaction
Itemized list of goods/services
Unit price and quantity
Total amount
Tax amount (if applicable)
Payment method

Country-Specific Requirements

Country	Special Requirements	Tax Number
United States	None (receipts not legally required, but recommended for taxes)	EIN if business
India	GSTIN mandatory for GST-registered businesses	GSTIN (15 digits)
United Kingdom	VAT number for VAT-registered businesses	VAT number (9 digits)
EU Countries	VAT number mandatory for B2B transactions	Country code + VAT

India GST Receipt Rules

For GST-registered businesses (turnover > ₹20 lakh):

GSTIN must be on receipt
Separate CGST, SGST, or IGST amounts
HSN code for goods (4 digits)
SAC code for services (6 digits)
Place of supply

Sample GST Receipt (India):

-----------------------------------------
    XYZ ENGINEERING
    123 Industrial Area, Mumbai
    GSTIN: 27ABCDE1234F1Z5
-----------------------------------------
Date: 15-Jan-2025
Invoice No: INV-2025-0015

Item          Qty  Rate     Amount
CNC Service    1   ₹5,000   ₹5,000

Subtotal: ₹5,000
CGST (9%): ₹450
SGST (9%): ₹450
Total: ₹5,900

Payment: Bank Transfer
-----------------------------------------

US Receipt Best Practices

While not legally required for most transactions, receipts are essential for:

Tax deductions (business expenses)
Warranty claims
Expense reimbursements
Returns/exchanges

IRS Requirements for Business Deductions:

Date
Amount
Business purpose
Vendor name
Items purchased

UK VAT Receipt Rules

For VAT-registered businesses (turnover > £85,000):

VAT registration number
Date of supply
Description of goods/services
Total excluding VAT
VAT rate and amount
Total including VAT

Digital Receipts

Electronic receipts are valid if:

Sent from verifiable business email
Contains all required fields
Can be printed (PDF format)
Timestamped

Warning: Screenshots of text messages or emails without business headers are NOT valid receipts for tax purposes.

Receipt Retention Periods

Country	Retention Period
United States	3 years (7 years for capital assets)
India	6 years from end of assessment year
United Kingdom	6 years

Using SHADER7 Receipt Generator

Our tool ensures compliance by:

Including all required fields automatically
Adding GSTIN/VAT numbers (configurable)
Calculating taxes correctly
Generating PDF with proper formatting
Adding sequential invoice numbers

Generate compliant receipts → shader7.com/receiptpro/

About the Author: Nishikant Xalxo's business passed a tax audit due to proper receipt documentation. He built the receipt generator to help other small businesses stay compliant. Contact: nxdecore@gmail.com

Next: Read CNC Tool Life Management