Legislation What is a private bill

Writing invoices privately - this must be observed in 2020!

Anyone who sells goods privately or provides a "friendly" service can (but does not have to) write invoices privately. Because, especially with higher amounts, you are often asked to do so. But what do you have to pay attention to when you issue invoices privately? And what must be on top? We'll tell you!

For your private bills you can download a free, legally compliant sample invoice here:

Private bill - what is it and when is it mandatory?

If a natural person (private person) issues an invoice, it is a private invoice. As a private person, it is not your duty to issue an invoice, but one is often required from your business partner.

You have to do this, as long as you have the tax allowance of 730 € / year do not exceed, do not pay taxes. In this case, you can voluntarily carry out an employee tax assessment, but it is not a must. If you, as a taxpayer with income subject to wage tax, exceed the exemption of € 730 and your total income is more than € 12,000 per year, an income tax return is required. Enter your total income from additional earnings without deducting the tax exemption of € 730, as this is automatically taken into account.

Our tip: Always keep an eye on the amount of your private bills.

Write private invoices - what must the invoice contain?

The following points are mandatory information on your private invoice:

  • Your name and address as a service provider or seller
  • Name and address of the customer or the customer's company
  • Date of issue of the invoice
  • Period of performance or period of sale
  • Scope of services or quantity and description of the goods
  • Important: Note on private sale / private service

No sales tax on private bills

Important: If you write invoices privately, Are you allowed to NO sales tax, also known as VAT.

Regardless of whether your customer's company is a company subject to VAT - you are not a private service provider! If you, as a private person, write an invoice that includes sales tax, you then owe this to the tax office.

Tip: Add a short text to your invoice Indication of a private sale and the exemption from sales tax (VAT).

The services listed above are privately performed work. Taking into account the small business regulation § 19 UStG, the offsetting is thus exempt from sales tax.

Other possible formulations based on the Small business regulation are.

  • "According to § 6 Abs. 1 Z 27 UStG 1994 the invoice amount does not include sales tax."
  • "VAT-free due to the small business regulation."
  • "For reasons of the small business regulation, the above mentioned service is charged free of sales tax."

When will I no longer be a private person?

When are you no longer a private person but already (part-time) self-employed? No general statements can be made here, as it depends on your industry from when you can be described as self-employed. For many professions, however, the Austrian trade regulations apply. This stipulates that you have to register a trade as soon as you work independently, regularly and with the intention of generating income.

Independent means that you pursue the activity at your own risk and account and thus bear the entrepreneurial risk yourself. Regularly do you perform the activity when you repeat it at certain intervals. Intention to generate income is equated with the intention to achieve a return that exceeds the costs associated with the activity. You can find a more detailed definition of the provisions on the WKO website.

Many professions are exceptions to the trade regulations, such as B. the liberal professions (doctor, lawyer, notary, etc.). Different laws apply to them. For some activities, however, there are no regulations at all (e.g. artists, journalists, writers).

If you are self-employed (part-time), the information on your invoices will of course change.