Regular sales over a longer period of time.Sale of new products or many similar items.When it comes to the sale of goods, the following criteria are considered to be indications of commercial activity: There are only a few features to look out for as a private seller. There are no clear rules on when a sale should be considered private and when it should be considered commercial. The line from private provider to entrepreneur can be quickly, and often unintentionally crossed. Depending on what goods are being sold, a sale per quarter can be considered “regular” by the tax office. This will mean that you have to register as a trader or at least as a freelancer with the tax office. “As previously discussed, the phone’s display screen has small scratches on the top left.”Īnyone issuing private invoices more than just a couple of time should be aware of the following: As soon as an economic activity takes place regularly, the tax office can deduce that you are exercising a trade or profession. If, for example, a used item being sold has a known defect, it is worth noting that on the private invoice. Other details of the legal transaction can also be included on the private invoice. “This invoice concerns a private transaction, so the 14-day withdrawal period applicable to consumer contracts shall not apply.” With a corresponding note on the private account, you can remind the recipient once again in order to avoid unnecessary uncertainties or even disputes: In general, the defaulting debtor must also compensate for damages caused by late payment if they are responsible for it.Īdded to that, it should be noted that the 14-day right of withdrawal applicable to company contracts does not apply to private legal transactions. sales contract) and the invoice issuer can order payment, and take further action if necessary. It therefore violates the invoice contract (e.g. does not pay the amount in due time, then, as is legally stated, they will be in default of payment. This information is important, because if the debtor exceeds the specified payment deadline, i.e. ![]() In any case, you should also specify a payment date on a private invoice – either “immediately”, a deadline (“in ten days after receipt of invoice”) or a specific date. If the invoice is not immediately paid in cash (in this instance, the received amount can also be acknowledged directly on the invoice), the invoice should also include the issuer’s bank details, including their IBAN number. Invoice amount, if applicable as the sum of the individual itemsĪ greeting to the recipient, and possibly also a thank you will round off the invoice nicely.Number, type, unit price, total price (possibly per item).Performances (or services) in list form, if applicable, including:.Reason for invoicing: Sale of goods, services rendered or similar.Therefore, a private invoice should include the following points: Although there are no formal requirements for this in private transport, a private invoice should contain certain elements in order to justify the claim being presented. it is a claim for the issuer to the recipient. However, from a legal perspective, each invoice is a request for payment, i.e. Unlike invoices from companies, invoices from private individuals are not bound by formal requirements and may vary as much as you like. As a private individual, you do not need to contact the tax authorities in advance in order to be able to issue a private invoice. not in the context of a trade or professional activity, does not generally have to comply with regulations. Since the sale price of the item is likely to be less than the original purchase price, a taxable profit was not incurred.Īn invoice issued by a private individual, i.e. However, if you resell a used item, like a vehicle or cell phone, you can issue a private invoice without worrying about any consequences. This often happens when a private individual sells items or performs services fairly regularly.Īdditionally, in principle profits from private transactions are subject to taxation. For a private individual, issuing invoices can have tax consequences – for example, if the tax authorities decide to categorize your transactions as commercial rather than private. In certain cases, for example, a business owner (company, sole trader) must issue an invoice for goods or services to another trader or legal entity. The tax authorities are only interested in invoices from business owners. It’s easy to wonder why an individual would bother issuing an invoice, or even if they are permitted to do so. Many companies also require invoices when purchasing a product or service from a private individual. If you were to sell your car, or charge for a non-professional service, the person making a purchase from you may require a personal invoice. ![]() Even as a private individual, creating an invoice is no problem.
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