Have you just completed a work assignment and is it time to send an invoice? If so, it's important that your invoice meets the requirements of the Tax Department (Dutch: Belastingdienst). If the invoice is not correct, then both you and the client cannot take advantage of the VAT deduction. In this blog, we discuss what requirements an invoice must meet in the Netherlands and how to make an invoice.
To keep VAT records, it is essential to keep accurate invoice records too. An invoice is a proof of transaction between the sender and receiver. You must send an invoice if you supply goods and/or services to:
Other business owners
Private individuals, but only in a few specific cases
Legal entities who are not business owners (associations, foundations)
When starting a business in the Netherlands, your invoices must meet some Dutch legal requirements. Your (electronic) invoice will need to include the following information:
Your business name and contact information
The customer's name and contact information
A unique invoice number
The VAT amount
Your VAT identification number
Your Dutch Business Register number (KVK)
The date the invoice was issued
A list of the items or services being invoiced, including a description, quantity, and price
Payment terms, such as the due date and accepted payment methods
Do you provide goods or services to another EU country? Then you must also indicate your customer’s VAT identification number.
There are a few exceptions to the requirements mentioned above. For example, you do not have to meet the requirements if you:
Business owners in the taxi and public transport branch
Business owners who supply exempt goods
Business owners who have agreed that the customer provides an invoice
There are no rules for the design and/or layout of the invoice, as long as the required information is included. Surprise your customers and set yourself apart from competitors with a unique and clear invoice format. We have some general tips on creating a clear and organized invoice:
Provide payment information: Include information on how the customer can make the payment, such as bank transfer details or a link to an online payment portal.
Include any applicable taxes: If applicable, be sure to include any applicable taxes on the invoice. Clearly label the tax amount and the tax rate.
Use bullet points or tables to list items: Use bullet points or tables to clearly list the items or services being invoiced. Include a description, quantity, and price for each item or service.
Clearly label each section: Use headings and subheadings to clearly label each section of the invoice. This can include sections for the invoice number, customer information, list of items or services provided, and payment terms.
Use a consistent layout: Keep the layout of your invoice consistent from one invoice to the next. This includes the font, font size, and margins. This makes it easier for your customer to understand the invoice and make payments.
Use a standard invoice template: Many accounting or invoicing software include pre-designed invoice templates that you can use as a starting point. This ensures that your invoice includes all the necessary information and is formatted professionally. Choose a template that is visually appealing and easy to read. Consider using a template with color, graphics, or other design elements that make it stand out.
There are several ways to create and send electronic invoices, also known as digital e-invoices:
Use accounting software
There are many invoicing software programs that allow you to create and send electronic invoices. Accounting programs allow you to send invoices via email or through an online portal. The bookkeeper and accountants in our network will be happy to advise you on selecting a suitable accounting program.
Use online invoicing platforms
There are also online invoicing platforms that allow you to create and send electronic invoices. These platforms typically offer a range of features, such as customizable templates, online payment options, and the ability to track and manage invoices.
Use a spreadsheet program
If you prefer a more basic option, you can create and send electronic invoices using a spreadsheet program such as Microsoft Excel or Google Sheets. Simply create a template with the necessary information and use the program's email or sharing functions to send the invoice to your customer.
In the Netherlands, the retention period for invoice records is seven years. This means that you should keep your invoice records for at least seven years after the end of the calendar year in which the invoice was issued or received.
This retention period applies to both paper and electronic invoice records. It is important to keep accurate and complete records of your invoices for tax and accounting purposes, as well as for the purpose of demonstrating compliance with legal requirements and business practices.
The retention period for invoice records may vary depending on the specific circumstances of your business and the requirements of any applicable laws or regulations. It is always a good idea to consult with a qualified accountant or bookkeeper to determine the appropriate retention period for your business.
We hope these tips helped you to make and send your (first) invoice. Do you need further help with the bookkeeping for your business? The bookkeepers and accountants in our network will be happy to support you. They have experience with English-speaking business owners and can also work digitally and remotely if preferred. In addition, they can advise you on choosing an appropriate accounting program.
Get free, no-obligation quotes from up to three different English-speaking bookkeepers or accountants in your area. Fill out the form below, and we will contact you within 24 hours by phone.
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