Invoicing individuals compared to businesses

The basic rules for what an invoice must contain are the same regardless of who the recipient is, but there are a few practical differences worth knowing about when invoicing a private individual instead of a business.

What customer details are needed?

For a business, you normally include the company registration number and, if applicable, a VAT number. For a private individual there is no registration number, instead name and address are what matters for the invoice to clearly show who is responsible for payment. A personal identity number does not normally need to appear on the invoice, but may in some cases be needed as internal documentation, for example for ROT/RUT work where you apply for a tax reduction from the Swedish Tax Agency.

VAT works the same way

VAT is charged the same way regardless of whether the customer is a private individual or a business, there is no general rule saying private individuals should be invoiced without VAT. The real difference is that a VAT-registered business can reclaim input VAT, while a private individual pays the full amount including VAT with no right of deduction.

Payment terms and tone

Businesses are often used to longer payment terms, 30 days is common business-to-business. With private individuals, shorter payment terms are common, and it is especially important that the invoice text is clear and easy to understand, since a private individual rarely has an accounting department interpreting an unclear invoice for them.

Payment reminders

The rules around reminder fees and late payment interest generally apply the same way to private individuals as to businesses, but consumer protection law gives private individuals some extra protection, for example around how reminders and debt collection notices must be formatted. Be extra careful to be clear and accurate in your communication when the recipient is a private individual.

In FakturaKlar you simply choose whether the customer is a private or business customer when you add them, and the right fields, such as company registration number or personal identity number, appear automatically based on that choice.