Writing an invoice as a Swiss private individual

As a Swiss individual, you may find yourself in situations where you need to issue an invoice. Whether you're selling personal items, offering occasional services, or considering a move into freelancing, understanding how to create a proper invoice is crucial. This guide will walk you through the process, highlighting key considerations and best practices for individuals in Switzerland.

When Can Individuals Issue Invoices?

In Switzerland, individuals can issue invoices for various reasons:

Selling personal belongings

e.g., furniture, electronics, vehicles

Providing occasional services

e.g., tutoring, house-sitting, pet care

Renting out personal property

e.g., a room in your house, equipment

One-time professional services

e.g., consulting, creative work

It's important to note that regular, income-generating activities may require you to register as self-employed or establish a formal business structure. We'll discuss this further later in the article.

Key Elements of an Individual's Invoice

While invoices from individuals don't need to be as formal as business invoices, including certain information ensures clarity and professionalism:

a) Your Information:

Full name
Address
Phone number and/or email address

b) Recipient's Information:

Full name or company name
Address

c) Invoice Details:

Unique invoice number
Date of issue
Description of goods or services
Quantity and unit price
Total amount due
Payment terms and due date
Preferred payment method (e.g., bank transfer details)

VAT Considerations for Individuals

As an individual not registered as a business, you generally don't need to charge or account for Value Added Tax (VAT). However, be aware of the following:

If your annual turnover from such activities exceeds CHF 100,000, you may be required to register for VAT.
Even below this threshold, if you're regularly selling goods or services, it may indicate that you're operating a business, which has different tax and regulatory implications.

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Formatting Your Invoice

While there's no strict format required for individual invoices, a clean, professional layout helps:

Use a word processor or spreadsheet program to create a template
Clearly separate and label each section of the invoice
Consider adding a personal touch, like a thank you note, for a more personalized experience

Payment Methods and Terms

For individuals, it's usually best to keep payment methods simple:

Bank transfer is the most common and secure method in Switzerland
For smaller amounts, cash payments may be acceptable
Clearly state your payment terms, e.g., "Payment due within 14 days"
Consider requesting payment in advance for goods or services, especially for higher-value items

Legal and Tax Implications

While occasional sales or services by individuals are generally straightforward, be aware that:

Income from these activities needs to be declared on your tax return ("Other income")
Regularly selling goods or services is considered a business activity by tax authorities.

Record Keeping

Even as an individual, it's important to keep good records:

Save copies of all invoices you issue
Keep track of payments received
Store related documents (e.g., correspondence, receipts for expenses)
This information may be necessary for tax purposes or in case of any disputes

Using a simple invoice management tool like Magic Heidi makes this much easier

Language Considerations

Switzerland's multilingual nature means you should consider the language of your invoice:

Use the primary language of your region (German, French, Italian, or Romansh)
If unsure, it's often safe to use the language you've been communicating in with the recipient
For important or high-value transactions, consider providing a bilingual invoice

Most invoicing software allows you to pick the language of your invoice.

When to Consider Becoming a Freelancer

As you issue more invoices and your activities become more regular, you may need to consider formalizing your status. Here are signs it might be time to register as a freelancer or self-employed individual

Your activities are becoming more frequent and regular

You're earning a significant income from these activities

You're investing in equipment or resources specifically for these activities

You're marketing your services or actively seeking clients

If you earn more than CHF 2'300 in a given tax year, you need to register as a self employed.

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Becoming a freelancer in Switzerland involves:

Registering with the Social Insurance Office (AHV/AVS)
Potentially registering for VAT if your turnover exceeds CHF 100,000
Keeping more detailed accounts and filing tax returns as a self-employed person
Potential eligibility for certain tax deductions related to your work

The benefits of becoming a freelancer include:

Legal clarity on your status
Ability to deduct work-related expenses
Potential to grow your activities into a full-fledged business
More professional appearance to clients

Curious about becoming a freelancer?

Read through our documentation to learn everything about self-employment

Discover our complete guide

Creating invoices as a Swiss individual doesn't have to be complicated. By following these guidelines, you can ensure your transactions are clear, professional, and compliant with Swiss norms. Remember, as your activities grow or become more regular, it may be time to consider formalizing your status as a freelancer or self-employed individual. This can offer both legal clarity and potential financial benefits.

Whether you're selling a few personal items or considering a move into regular freelance work, understanding how to create proper invoices is an valuable skill. It demonstrates professionalism, helps maintain clear records, and ensures smooth transactions. As with any financial matter, if you're unsure about your specific situation, don't hesitate to seek advice from a qualified professional.

By mastering the art of invoicing, you're not just facilitating individual transactions – you're potentially laying the groundwork for future entrepreneurial endeavors in Switzerland's dynamic economic landscape.