1. A website is informational.
A web application is interactive.
2. A specific example of a web application could be your local library website that allows you to search their catalog of books and make a reservation.
Your online banking is a web application as well.
Website:
Your favorite blog or news based site.
3. The visitor of a web application can input, change and manipulate data on the website.
All you can do on the website is to watch or read information.
4. Integration:
Integration is more typical for web applications, because their complex functionality often requires interaction with extra systems.
Websites:
For a website, it’s rather a rarely implemented feature than a part of the core functionality.
5. Web apps were the ones with code and/or scripts (in Perl/CGI, PHP, ASP, etc.) on the server, and sites were the ones with static pages.
6. A web application is a web site that the user can control.
7. Many websites are actually website/web application hybrids.
8. In informational websites, authentication is not mandatory.
Web applications require authentication.
9. If you have to log in to use it, at least part of it is a web application.
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