Last updated March 28, 2024
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What is a Sales Receipt?
A Sales Receipt documents a transaction in which ownership of personal property transfers from one party to another.
Sales Receipts can be used for basic sales involving motor vehicles, trailers, boats, animals and other personal property items, such as furniture or bicycles.
Our Sales Receipt template is customised for Ireland.
When should I use a Sales Receipt?
Use a Sales Receipt when selling or buying:
- Motor vehicles, such as cars, trucks, and motorbikes
- Personal property, such as furniture, electronics, bikes, and jewellery
- Trailers
- Boats and other watercraft
- Pets and animals, such as dogs and horses
- Other assets, such as tools, equipment, and appliances
If you’re selling a motor vehicle, you may use our Car Sale Receipt template instead, as it’s customised for vehicle sales.
Remember that you cannot use a Sales Receipt when buying or selling real estate, businesses, or shares.
Why is it important to use a Sales Receipt?
A Sales Receipt protects the seller's and buyer's interests and can prevent future disputes and issues. It’s important to use a Sales Receipt because it:
- Documents the transfer of ownership: Without proper documentation, it's difficult to prove that a buyer has paid and received an item, especially if they've paid in cash. A Sales Receipt shows that ownership was transferred on a specific date.
- Proves the item was sold ‘as is’: By using a Sales Receipt, the seller can prove that the item was sold as seen. Without a Sales Receipt, a buyer could claim that the seller sold them a defective item.
- Records the payment terms: With a Sales Receipt, both parties can prove the agreed-upon payment terms, such as the purchase price and payment method. The Sales Receipt can be referenced if the buyer doesn't provide the full amount and the seller takes legal action to obtain it.
- Ensures the proper provisions are included: Our Sales Receipt is customised to your country's laws and includes all the necessary clauses to protect your interests.
Who should use a Sales Receipt?
Any person or small business selling an item to another person or business should use a Sales Receipt so there is a clear record of the transfer of ownership.
If you find yourself in a situation where multiple people collectively buy or sell an item, you can list more than one seller or purchaser within your Sales Receipt.
How do I write a Sales Receipt?
To create a Sales Receipt, complete the following steps:
1. Describe the item
Describe the item by providing its appearance and condition. You could include information about the colour, dimensions, shape, age, repairs, missing components, manufacturer's information, serial number, etc.
List the seller and buyer’s names and addresses. You can add more than one seller or buyer to your Sales Receipt if necessary.
3. Outline payment details
State the item's sale price and specify if Value Added TAX (VAT) will apply to the sale. Also, include the form of payment.
What payment methods can I include in a Sales Receipt?
Our template allows you to indicate any of the following payment methods that will be included in your transaction:
- Cash
- Bank draft
- Cheque
- Electronic funds transfer
If these payment options aren’t applicable, you can also close the sale with most other viable payment methods. In most cases, sellers should secure payment before giving possession to the buyer.
4. Note any loans or liens
If there are any loans or liens against the item, be sure to note them and describe the arrangements for loan or lien repayment. Mainly, you need to specify whether the buyer or seller will pay off the loans.
If a loan or lien is going to pass to the buyer, the seller should reduce the purchase price by the corresponding amount.
What does ‘as is’ mean in a Sales Receipt?
‘As is’ means that an item is being sold in its current condition and the buyer accepts it with all its flaws. Generally, sellers don’t provide any warranties or guarantees in a Sales Receipt.
With an ‘as is’ provision, the seller isn't liable for any imperfections or flaws in the item, provided they haven't hidden or lied about them. An ‘as is’ provision protects the seller from being held responsible for any item-related issues after the buyer pays and receives the item.
Our Sales Receipt template automatically includes a statement that the property is being sold in ‘as is’ condition, so you do not need to add this detail as an additional clause.
Who signs a Sales Receipt?
When you're selling a vehicle or other important items, both the buyer and the seller may have to sign the Sale Receipt.
For other types of items, such as furniture, only the seller may have to sign the Sales Receipt. Once you specify your location and item type, we customise your document to only include space for the necessary signature(s). Or, if you want the buyer to be required to sign, you can specify so when you complete the questionnaire.
Who gets to keep the Sales Receipt?
It’s recommended that both parties have their own signed copies of the receipt. Usually, the seller creates the Sales Receipt. Therefore, they may print two copies to sign so both parties have a record of the transfer of ownership.
