2026 Guide

What Is a Receipt? How to Read One

Receipt means proof of a completed purchase, itemizing what you bought and paid. Here is a plain-English guide to what it is and how to read every field.

What is a Receipt?

A receipt is the document a merchant gives you as proof that a purchase was completed and paid. It lists the merchant, the date, the items bought, and the amounts — subtotal, tax, tip, and total. Freelancers and finance teams keep receipts to substantiate expenses and reimbursements.

Who sends a Receipt, and when?

The merchant (a store, restaurant, or online seller) issues a receipt at the point of sale, on paper or digitally by email.

How to read a Receipt, field by field

Merchant name & location

The business you paid and, often, the specific store or address.

Date & time

When the purchase happened — important for expense periods and returns.

Line items & prices

Each product or service purchased with its individual price.

Subtotal

The total of the items before tax and tip.

Tax

Sales tax applied to the subtotal.

Tip & total

Any gratuity added and the final amount charged.

Payment method

How you paid — the card last four, cash, or another method.

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What to double-check

⚠For expense reports, the itemized receipt (not just the card slip) is usually required.
⚠Thermal-paper receipts fade — capture a photo promptly.
⚠Tip is often handwritten and added after the printed total on restaurant receipts.

Frequently asked questions

What counts as a valid receipt for expenses?

An itemized receipt showing the merchant, date, items, and total is the standard most expense policies require.

What is the difference between a receipt and an invoice?

A receipt proves a completed payment; an invoice requests a payment that has not yet been made.

How do I digitize paper receipts?

Photograph or scan them and extract the key fields (merchant, date, total) into a structured record for your expense system.