Requirements for a company’s invoice in the Netherlands
Almost all companies need invoices. But what must be included in an invoice in the Netherlands? Invoicing standards in the Netherlands are quite strict. Let’s go over the requirements in this article.
Invoices Must Include the Following Information
Let’s consider what information an invoice provides to you and your customers. First, let’s go over the technical details of an invoice.
Technical details in the invoice
Date of issuance
The date on which the invoice was issued. Invoices must be sent by the 15th day of the month following the month in which you supplied the service or product. For example, if you sold something in April, you have to send the invoice no later than 15 May.
Date due
Your customer must pay the invoice within the payment term. Companies must pay the invoice within 60 days, unless you have made other arrangements and specified these in the contract.
A unique, sequential number
Use consecutive numbers for your invoices, with 1 or more series. Each invoice number may only appear once. This is particularly important for VAT purposes: if your invoices do not meet the requirements, your buyer will not be entitled to a VAT deduction.
The order principle must be preserved. There should be no missing numbers. At the same time, the invoice may contain dashes, dots, slashes, or letters that mean something to you (client, direction).
The date on which the goods or services were delivered
Your Company Details
Invoices must include information about your company, let’s go over what you should provide in invoices.
Company name
State the legal name. The trade name is also allowed, if it is registered with the Chamber of Commerce in combination with the address and place of residence. For fiscal units, it is common for the name of the part providing the service to appear on the invoice.
Your VAT identification number (BTW-number)
This is the number with 'NL' in front of it. For fiscal units, state the VAT identification number of the party providing the service.
Legal address of your company
State the address where the company is actually located. It is not sufficient if you only state a PO box number.
Your Dutch Business Register number (KVK-nummer) if you have one
If you are registered with the Chamber of Commerce: put your Chamber of Commerce number (your KVK number).
Your customer
Together with that, information about your customer is a must too.
The name of that person or company
Address of that person or company.
If you provide services or sell goods to customers in EU countries who file VAT returns, you usually do not charge VAT. The customer calculates the VAT and declares it in his own country. So, we recommend asking your customer for their VAT identification number.
If you do business with other EU countries
If you provide services or sell goods to customers in EU countries who file VAT returns, you usually do not charge VAT. The customer calculates the VAT and declares it in their own country.
Do you export goods or services within the EU to customers who do not file a VAT return? Such as private individuals. If so, you typically need to charge the VAT of the EU country where your client is located.
When you export goods to a non-EU country, you must use the 0% VAT tariff. It makes no difference if your customer is an individual or a company. You must be able to demonstrate that your goods have really left the EU.
When you export services to a non-EU country, the service is taxed in your customer's country. You send an invoice without Dutch VAT.
Don’t bother yourself thinking about VAT, just issue invoices on Enty
Products and services
name your products / services
amount of units provided
price per unit
VAT rate applicable to each product/service
The amount you ask for
excluding VAT
amount of VAT
total sum (including VAT)
Some things to take into account
In general, this is all the information, you must include in your invoices but let’s go over some specific cases that might cause some complications.
KOR Scheme
Are you making use of the Small Businesses Scheme (KOR)? Then, you don’t have to send an invoice but you can. If you do, do not include a VAT percentage or VAT amount. Instead, the invoice should include the sentence 'factuur vrijgesteld van OB o.g.v. artikel 25 Wet OB' (invoice exempt from VAT under Article 25 of the Turnover Tax Act).
Mandatory invoice
You must always issue an invoice when providing services or for the delivery of goods to nonprofit organizations (for example, associations and foundations). It does not matter whether it is a domestic or foreign customer. You must also provide an invoice if you receive an upfront payment (refinanced payment) for goods and services that will be purchased from you.
Simplified invoices
If both your company and your client are in the Netherlands and your invoice's total amount does not exceed €100 (VAT included), then you can put only:
the date on which you issue the invoice
your name and address details
what goods or services you have provided
VAT
Rules on sending invoices to private individuals
If you supply services or goods to private individuals (in Dutch), you do not need to provide an invoice, unless:
You are a wholesaler in food, tobacco products, dental raw materials, or equipment and at least 80% of your customers are entrepreneurs
You sell a new or nearly new vehicle to a customer in a different EU country.
You are involved in distance selling.
Keep invoices for 7 years
You can issue, receive, and store your receipts and invoices in electronic format. Note that electronic invoices must contain the same information as the original paper invoices. You must keep invoices for 7 years. You have to keep invoices relating to immovable property for 10 years.
That’s it! Check all the data is correct and send the invoice to your customer. In fact, there’s nothing complicated, but still, manual creation of invoices sometimes provokes mistakes. Thus, it’s better to automate this process and use invoicing service.
On Enty, you’ve got totally automatized invoicing. You can keep and manage invoices in one place. Moreover, you can add payment link to your invoice and client will be able to pay for it using a bank card. You can also synchronize invoicing with accounting, so all invoices issued on Enty will be automatically reflected in the accounting report.
