Invoice, receipt, deposit invoice, tax invoice: what Singapore small businesses need

Quote, invoice, deposit invoice, tax invoice, receipt: they're easy to mix up, and using the wrong one can confuse customers or, for GST-registered businesses, cause problems with IRAS. Here's what each one is for. This is general information, not tax advice; if you're GST-registered, check the details with your accountant or IRAS.

Quote

What you're offering to do and for how much, before the customer agrees. It isn't a request for payment. Once they accept, it becomes the basis for the deposit and final invoices.

Invoice

A request for payment: who you are, who the customer is, what they're paying for, how much, and when it's due. Give every invoice its own number that never repeats (including across years) so payments and records always match up.

Deposit invoice

An invoice for the upfront part of the price, before work starts. It should show the full price, the deposit being asked for, and your deposit terms, so it's clear what the deposit is for and when it stops being refundable. Our deposit policy template is a good starting point.

Final (balance) invoice

When the work is done, this shows the full price, what has already been paid, and the balance still due. The customer should be able to see at a glance that their deposit was counted.

Receipt

Confirmation that you've received a payment: how much, when, how, and what it was for. Send one for each payment, the deposit and the balance. It's the customer's proof, and it saves you the “did you get my transfer?” messages.

Tax invoice (only if you're GST-registered)

Only GST-registered businesses may charge GST and issue tax invoices. If you're not registered, don't add GST or call your invoices tax invoices; just call them invoices. If you are registered, your tax invoices need to show your GST registration number and the GST amount, among other details; IRAS allows a simplified tax invoice for smaller sales. The GST rate has been 9% since 1 January 2024.

For GST-registered businesses, deposits also matter for timing: GST is generally accounted for when you issue an invoice or receive payment, whichever is earlier, so a deposit you receive can trigger GST on that amount. Your accountant can confirm how this applies to you.

GST-registered businesses are also moving to InvoiceNow, IRAS's e-invoicing network, in phases between 2025 and 2031, starting with new registrants.

A simple set for made-to-order work

1. Quote, agreed by the customer.
2. Deposit invoice with your terms, and a receipt when it's paid.
3. Final invoice showing the deposit and the balance, and a receipt when that's paid.

That's exactly the flow we built: one job record from quote to paid, with the right document at each step, GST shown only if you're registered, and a PayNow QR on every invoice. Try it free.