Why This Matters
If you use Stripe, your customers get an email after every charge. That email is a receipt, not an invoice. The difference sounds small but causes real problems.
Your customer's accountant cannot use a Stripe receipt for a tax deduction. A receipt does not satisfy EU VAT requirements. And if you get audited, a folder of Stripe receipts is not proper bookkeeping.
The good news: once you understand what each document is, setting up proper invoicing is straightforward.
What is a Stripe Receipt?
A Stripe receipt is a payment confirmation sent automatically after every charge. Think of it like the slip you get after tapping your card at a coffee shop. It proves the payment happened, but it is not a business document.
What it includes:
- Amount charged
- Date of charge
- Last 4 digits of the card
- A Stripe receipt URL
- Short charge description (if set)
What it does NOT include:
- Your business name, address, or tax ID
- The buyer's name, company, or address
- A sequential invoice number
- Itemized line items with quantities and prices
- VAT or tax breakdown
- Payment terms
A Stripe receipt says "$X was charged on this date." That is all. It is not designed for accounting, tax filing, or compliance.
What is a Proper Invoice?
An invoice is a formal business document used for accounting, tax deductions, and legal compliance. Unlike a receipt, it contains everything both the seller and buyer need for their books:
- Seller details - business name, address, tax/VAT number
- Buyer details - customer name, company, address
- Invoice number - unique, sequential
- Line items - description, quantity, unit price
- Tax/VAT - rate, amount, registration numbers
- Dates - issue date, due date, payment date
- Total - with subtotal, tax, and grand total
Stripe can generate proper invoices through Stripe Invoicing, but it adds a 0.4% fee per invoice (capped at $2) on top of processing fees. At scale, that adds up quickly.
Receipt vs Invoice: Side-by-Side
| Stripe Receipt | Invoice | |
|---|---|---|
| Purpose | Payment confirmation | Legal transaction record |
| Legal status | Not a legal document | Recognized for tax/accounting |
| Seller info | Minimal or none | Full name, address, tax ID |
| Buyer info | Email only | Name, company, address, tax ID |
| VAT / Tax | Not included | Rate, amount, registration numbers |
| Line items | Single description at best | Itemized with quantities and prices |
| Invoice number | No | Yes, unique and sequential |
| When sent | Auto after every charge | Before or after payment |
| Cost in Stripe | Free | 0.4% via Stripe Invoicing |
| Valid for tax deductions | No | Yes |
If your customers just need proof of payment, a receipt works. If anyone needs the transaction documented for business or tax purposes, you need an invoice.
When Do You Need an Invoice?
More transactions require invoices than most people think:
- B2B sales - businesses need invoices to deduct expenses. No invoice means no deduction. If you sell to companies and only send Stripe receipts, expect frequent invoice requests.
- EU VAT - VAT invoices are legally required for most B2B transactions in the EU. They must include VAT numbers, rates, and amounts. A Stripe receipt has none of this. Check rates with our VAT calculator.
- International sales - many countries outside the EU (Brazil, India, Japan, Mexico) require invoices for business transactions.
- Customer requests - a customer pays, gets a receipt, then emails asking for "a proper invoice." Without an invoicing system, this becomes manual work every time.
- Your own bookkeeping - proper invoices with sequential numbers make bookkeeping cleaner, audits easier, and tax filing less painful.
How to Send Invoices from Stripe Payments
Three options, from most expensive to cheapest. For a deeper dive, see our full Stripe invoicing guide.
1. Stripe Invoicing (0.4% per invoice)
Stripe's built-in feature. Creates professional invoices with a payment link. Works well, but adds 0.4% (capped at $2) per invoice on top of processing fees. At 100 invoices/month averaging $300, that is $1,440/year.
2. Manual invoicing with external software
Use QuickBooks, Xero, FreshBooks, or a free invoice generator to create invoices for each Stripe payment. Works but requires manual data entry for every transaction.
3. Automatic invoicing with Stripdo ($39/year)
Connect your Stripe account. Stripdo generates a proper invoice for every payment and emails it to your customer automatically. No manual work, no per-invoice fees. Set up in under a minute.
See how Stripdo compares to Stripe Invoicing in our detailed comparison.
Turn Stripe receipts into proper invoices
Set up in under a minute. $39/year, unlimited invoices.
Frequently Asked Questions
Does Stripe send invoices automatically?
No. Stripe only sends payment receipts by default. Receipts are simple confirmations that lack business details, VAT, and line items. To send proper invoices, you need Stripe Invoicing (0.4% fee) or a tool like Stripdo ($39/year) that generates invoices from your payments automatically.
Is a Stripe receipt the same as an invoice?
No. A receipt is a payment confirmation with the amount and date. An invoice is a legal document with seller details, buyer details, VAT, line items, and a sequential invoice number. Receipts cannot be used for tax deductions or VAT claims.
Do I need to send invoices for Stripe payments?
If you sell to businesses (B2B), almost certainly yes. Your customers need invoices for tax deductions and bookkeeping. In the EU, VAT invoices are legally required for most B2B transactions. Even for B2C, many countries require invoices above certain thresholds.
Can I use a Stripe receipt for tax purposes?
In most cases, no. Tax authorities require proper invoices for business expense deductions. Stripe receipts lack seller details, VAT registration numbers, and itemized line items. An accountant will reject a Stripe receipt as documentation for a business expense.
How do I get a proper invoice from a Stripe payment?
Three options: (1) Enable Stripe Invoicing at 0.4% per invoice. (2) Create invoices manually in accounting software. (3) Use Stripdo to auto-generate and email invoices for every Stripe payment at $39/year flat.
What is the difference between a Stripe receipt and invoice for VAT?
A Stripe receipt has no VAT information at all. A VAT invoice must include the seller's VAT number, buyer's VAT number (B2B), net amount, VAT rate, and VAT amount. Without a valid VAT invoice, businesses cannot reclaim VAT on purchases.
How much does it cost to send invoices through Stripe?
Stripe Invoicing charges 0.4% of the invoice amount (capped at $2) on top of processing fees. At 100 invoices/month averaging $300, that is $1,440/year. Stripdo does the same thing for $39/year flat.
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