In short:
- A formal invoice within the meaning of § 14 UStG may only ever be issued by a business anyway — as a purely private individual, you don't need one for an occasional sale.
- What matters is whether your activity becomes "sustained" (nachhaltig) — that is, regular and aimed at generating income. That's when you become a business for tax purposes.
- As a private individual, never state VAT — otherwise you'd be liable for it under § 14c UStG, even though you're not a business.
- The other way around: if you hire a tradesperson to do work on your property as a private individual, they have to issue you an invoice — and you have to keep it for 2 years.
Do I even have to write an invoice as a private individual?
Short answer: in the vast majority of cases, no. § 14 UStG requires businesses to issue invoices — a private individual who, say, sells used furniture, an old bike, or clothing simply isn't a business within the meaning of the German VAT Act (UStG), and therefore doesn't have to issue a formal invoice. An informal receipt with a date, item description, and amount is sufficient — and protects both sides in case of a dispute.
When does a private seller become a business?
The decisive question under § 2 UStG is whether your activity is sustained (nachhaltig) — that is, planned to be repeated and aimed at generating income. Typical indicators the tax office looks at:
- You sell regularly and repeatedly, not just once while clearing out your belongings.
- You buy items specifically in order to resell them at a profit.
- The scale of your sales clearly goes beyond occasional, private occasions.
There is no fixed quantity or revenue threshold for this — the classification is always a case-by-case decision by the tax office. If you sell regularly and with a clear profit motive, you should check early on whether you need to register as a Kleinunternehmer or a registered trader — you'll find a general introduction to this in our article "Invoicing as a Kleinunternehmer".
The costly mistake: VAT on a private receipt
One detail many people overlook: if you, as a private individual, accidentally state VAT or a tax rate on a receipt (for example because you copy an invoice template from the internet without changing it), you owe that amount to the tax office — under § 14c (2) UStG, even though you're not a business at all and shouldn't have stated VAT in the first place. So keep a private receipt deliberately simple: date, description of the item sold, amount, both names — no tax information.
The reverse case: you're a tradesperson's private customer
The same question often comes up from the other direction: what applies if you, as a private individual, commission a service? Here, the legislator created a special rule specifically for real estate:
- The business's invoicing obligation: if a business provides a taxable work delivery or other service in connection with a property — such as construction work, garden work, or maintenance on your house — it must issue you, as a private customer, an invoice within 6 months under § 14 (2) UStG.
- Your record-keeping obligation as a private individual: as the recipient of such an invoice, you are required under § 14b UStG to keep the invoice, the payment receipt, or another evidentiary document for 2 years. The business must point out this obligation on the invoice itself.
- Consequence of non-compliance: a violation of the record-keeping obligation is an administrative offense and can be punished with a fine of up to €500.
This rule specifically concerns trade and construction services related to real estate — not every service provided to private individuals.
Frequently Asked Questions (FAQ)
Do I have to write an invoice as a private individual when selling used items? No. A formal invoice within the meaning of § 14 UStG may only be issued by a business anyway. An occasional private sale (e.g. on an online classifieds site) doesn't make you a business — an informal receipt without VAT is sufficient.
At what point do sales turn me into a business? What matters under § 2 UStG is whether you carry out a "sustained" activity aimed at generating income — that is, regularly, with a recurring intent, and not just a one-off clear-out. There's no fixed quantity or amount threshold; the classification depends on the individual case.
What happens if I accidentally state VAT as a private individual? Then you owe that amount to the tax office under § 14c (2) UStG, even though you're not a business at all. As a private individual, you should therefore never state VAT or a tax rate on a receipt.
Does a tradesperson have to issue me an invoice as a private customer? Yes, for services related to a property (e.g. construction, garden, or maintenance work), the business is required under § 14 (2) UStG to issue you an invoice within 6 months — regardless of whether you're a private customer.
Do I have to keep a tradesperson's invoice I received as a private individual? Yes, for invoices for services related to a property, you as the private recipient are required under § 14b UStG to keep the invoice, the payment receipt, or another evidentiary document for 2 years. The business must point this out on the invoice.
Conclusion
As a purely private individual, you generally don't have to write a formal invoice — a simple receipt without VAT is enough. But as soon as your sales or services become regular and profit-motivated, the classification shifts toward being a business, and the usual mandatory details under § 14 UStG apply. If you're just starting out professionally and want to know exactly what has to go on your invoices, our foundational article "Writing a Proper Invoice" can help — or create your first e-invoice with all mandatory details right away.
