Receipt after a discharged debt: required details and costs

After payment, the payer may request a written receipt. Section 1426 of the Austrian Civil Code (ABGB) sets out the information the confirmation must contain and who bears its cost.

The names of the parties, the place and time of payment and the specific debt that has been discharged are central to the allocation. Where several invoices or transfers exist, the document should show which amount satisfied which obligation.

This article explains the statutory entitlement to a receipt, the required signature and the cost rule. Questions about a principal receipt under section 1427 ABGB, allocation of partial payments and limitation have their own legal framework.

When the payer may request a receipt

Section 1426 ABGB entitles the payer in every case to request a receipt from the person who has been paid. The receipt is a written certificate that the obligation has been discharged. The entitlement therefore relates to satisfaction of the specific debt.

A receipt confirms a payment event. It does not replace an agreement about another claim and it does not automatically determine how outstanding interest, costs or further invoices should be classified. That requires a review of the complete payment context.

For initial documentation, keep the payment record, identify the claim and note the payment date. The creditor should issue the confirmation in a way that allows a third person to understand the connection between the payment and the discharged debt.

Which details the receipt must contain

The provision names the debtor and creditor as well as the place and time. It also requires the subject of the discharged debt to be expressed. The document should therefore show who paid, who received the payment, when and where the confirmation was issued and which debt has been settled.

For a single invoice, the invoice number may establish the claim reference. For a loan, running balance or several agreements, the receipt should also identify the agreement, period or specific payment reference. The clearer the allocation, the lower the risk of later disputes.

The receipt must be signed by the creditor or the creditor’s authorised agent. A message without a recognisable confirmation by the entitled party may fail to fulfil the purpose of the statutory receipt. Keep the signature together with the complete text.

How to connect payment and discharged debt

A receipt is most useful when it matches the payment record. Amount, payment date, recipient and payment reference should therefore be reviewed together. The account record shows the transfer, while the receipt confirms that the transfer discharged a particular obligation.

If the transferred amount differs from the amount stated in the receipt, record the discrepancy. The same applies where the receipt names a different invoice or agreement from the payment reference. A short written clarification can prevent later allocation disputes.

The receipt documents the discharged debt to the extent shown by its wording. A general confirmation of payment should therefore not be extended to other claims without review. Separate documentation is usually the clearest basis where several payments are involved.

Who pays the receipt cost and signs it

Under section 1426 ABGB, the creditor bears the cost of the receipt unless the parties have agreed otherwise. The statutory rule therefore generally assigns the cost to the party that received the payment and issues the confirmation.

An agreement may allocate the cost differently. Whether such an agreement exists depends on the contract, payment terms or a later arrangement. The wording should make clear whether it concerns the issue of the receipt alone or also particular delivery costs.

The creditor or the creditor’s authorised agent must sign. For a company, it is therefore useful to check whether the signatory was authorised to act for the creditor. It is not enough to know the name of a contact person; the declaration must be attributable to the entitled party.

What to document when several claims exist

Where several invoices, agreements or running balances exist, the receipt must identify the discharged debt with sufficient certainty. A statement such as “payment received” may be too general if it does not show which claim has been settled.

In that situation, record the payment date, amount, recipient, payment reference and claim number in one overview. The receipt may refer to the overview if both documents remain connected and the discharged debt is clearly identifiable.

The receipt addresses proof of discharge. Questions about allocating a partial payment between principal, interest and costs have their own legal framework. An imprecise receipt should not be used to answer those questions in advance.

Which documents help with the next review

Bring together the receipt, payment record and the underlying invoice or agreement. For several payments, also keep account records, payment references and a chronological claim overview.

Do not try to reconstruct discrepancies from memory. Mark which name, amount, time or claim reference is unclear in the document itself. Supplementary emails or messages may show what the parties meant when the payment was made.

If the creditor issues no receipt after payment or refuses to correct an inaccurate confirmation, present the facts in an organised written form. This makes it possible to clarify the requested certificate and any separate question concerning an open claim.

How the firm assesses the receipt entitlement

BRANDAUER Attorneys first place the payment, claim and receipt in a clear timeline. The review then asks whether the text identifies the discharged debt sufficiently and whether the signature can be attributed to the entitled party.

Where several claims exist, payment records, invoices, agreements and communication are separated and compared. This shows whether the issue concerns issuing a receipt, correcting its content or a separate dispute about the remaining claim.

For an enquiry, the existing receipt, payment record, invoice or agreement and key communication are useful. The next step can then be based on the payment and its evidence.

Frequently asked questions about receipts after payment