MKB Juristen drafts custom legal documents
It is best not to cobble together or copy important contracts, terms and conditions, and other legal documents yourself. We help entrepreneurs on a budget with customized legal solutions, clear costs upfront, and practical explanations.
- Custom contracts, terms and conditions, and legal documents
- Budget-friendly and clear about the costs upfront
- Request a free consultation or a no-obligation quote
A proof of payment demonstrates that you have paid for a product or service. This does not need to be a signed document: a bank statement or receipt will suffice. Because the payer has a debt to bring—they must prove that they paid—a proof of payment is important. Therefore, for cash payments, you should ask for a receipt, which can also serve as proof of ownership.
Invoices are there to be paid, and in the event of a dispute, you must be able to prove that you paid. Usually, this is simple—with a receipt or bank statement—but for cash payments, it is better to ask for a receipt.
What is a proof of payment?
A proof of payment demonstrates that a debtor has paid for a product or service. It comes in many forms and does not need to be a signed document: a bank statement and a receipt are also proofs of payment.
Why do I need proof of payment?
A receipt helps resolve disputes regarding payment, for example, if the supplier disputes having received anything. The payer bears a debt to bring: he must prove himself that he paid. In principle, the supplier does not have to prove that he received nothing—only if the customer first provides the receipt. The customer therefore bears all risks until the payment arrives.
Therefore, proof of payment is important for the customer. With a bank payment, this is always available, provided you keep your bank statements safe. For cash payments, it is better to ask for it.
The receipt as proof of payment
When paying in cash, the customer usually asks for a receipt. As a business owner, you are not obliged to always provide one — only if the customer requests it. There are no fixed requirements for a receipt: in principle, a note with your company name, the date, and the amount received suffices. In practice, however, more information is advisable: the name of the recipient (or their company), a reference to the paid invoice or the product/service, and possibly the VAT amount. The clearer, the better.
The receipt as proof of ownership
A receipt is also proof of ownership: it demonstrates that the product was legally acquired and was not stolen. That utility is relative, however, because an invoice is also proof of ownership (and you are required to issue one to businesses). The difference: an invoice demonstrates a claim, a receipt a payment. An invoice must meet many legal requirements and can only be issued by a business, whereas private individuals are also permitted to issue a receipt. Proof of payment for ownership is only required in the case of a retention of title clause in the terms and conditions
Frequently Asked Questions
What counts as proof of payment?
Including a bank statement, a receipt, or a payment order. A signed document is not required; the important thing is that it can be proven that payment has been made.
Do I need to issue a receipt as a business owner?
Only if the customer requests it. A receipt has no fixed format, but for clarity, it states the company name, date, amount, recipient, and the paid invoice or service.
What is the difference between an invoice and a receipt?
An invoice proves a claim and must comply with legal requirements; a receipt proves payment and may also be issued by private individuals.
Questions about invoices, payments, or retention of title?
The legal experts at MKB Juristen advise you on invoices, proofs of payment, and securities such as retention of title. View our expertise in contract law or schedule an intake meeting .
