What must be included on an invoice?
What needs to be on an invoice is largely determined by law: your company details, your customer's details, a unique invoice number, the invoice date, the delivery date, a description and the VAT. The Tax and Customs Administration requires this information so that your invoice is correct for VAT and your customer can deduct the VAT. In the situations below you sometimes state more, and sometimes less.
What is an invoice?
An invoice is the document with which you charge a customer for a delivery of goods or a service. It records what you have delivered, for what amount and when, and forms the basis of your VAT administration.
An invoice is more than a simple bill or receipt: the Dutch Tax and Customs Administration imposes fixed requirements on an invoice, whereas a receipt is only sufficient as proof for small amounts. If you deliver to another entrepreneur, you are obliged to send an invoice.
Mandatory details on an invoice
The mandatory details on an invoice are determined by the Tax Administration (Belastingdienst) and are the same for every legal form. If one is missing, your invoice is formally invalid for VAT. It should always include:
Your name and address: your full name or trade name as registered with the KVK (Chamber of Commerce), with a physical address, as a PO Box is not sufficient.
Your customer's details: the name and address of the party to whom you are supplying.
Your VAT identification number: the VAT ID you receive from the Tax Administration after registration with the KVK, not to be confused with your turnover tax number (omzetbelastingnummer).
Your KVK number: the number under which your business is registered in the business register.
A unique invoice number: a sequential number that occurs only once; multiple series are allowed.
The invoice date: the day on which you prepare and send the invoice.
The delivery date: the day on which you delivered the goods or service.
A description: what you delivered and in what quantity.
The VAT details: the amount excluding VAT, the VAT rate, the VAT amount in euros and any discounts.
Your account number does not legally have to be on it, but almost everyone includes it so the customer knows where to pay. Use the IBAN of your business account for this, as it keeps your business and personal payments neatly separated.
Which dates must be on an invoice?
An invoice must contain two mandatory dates: the invoice date and the delivery date. The invoice date is the day on which you prepare the invoice; the delivery date is the day on which you delivered. These two by no means always coincide.
You must send an invoice no later than the 15th day of the month following the delivery. This is because the invoice date determines the period in which you declare the VAT. The due date, the deadline for payment by your customer, is not mandatory but prevents discussion about when payment is due.
Additional details on an invoice
In addition to the mandatory details, you often include additional information on an invoice to make payment smoother. The best known are your IBAN, a payment term, a reference and sometimes a PO number. They are not mandatory, but they save you and your customer from having to make enquiries afterwards.
What is a reference on an invoice?
A reference on an invoice is an identifier with which your customer links the payment to the correct invoice. Think of a payment reference, a customer number or a project code. The customer includes this reference with the bank transfer, so that you can immediately find the payment in your administration.
What is a PO number on an invoice?
A PO number on an invoice is the purchase order number that your customer has issued in advance. Larger companies and the government use them because it links your invoice to an approved purchase order. If the number is missing, your invoice will often be left on hold by those parties until you supply it.
When do you not include VAT on your invoice?
You do not include VAT on your invoice in the case of the small businesses scheme (KOR), a VAT exemption or a reverse charge VAT. Under the KOR, you do not charge VAT and you state on the invoice that you are using the scheme; invoicing is then permitted, but not compulsory.
If you have an exemption, for example for certain healthcare or education, you also omit the VAT. If the VAT is reverse-charged to a business customer, you state "VAT reverse-charged" plus your customer's VAT identification number. These rules are independent of your legal form and apply equally to everyone.
The simplified invoice under 100 euros
A simplified invoice is allowed if the total amount is a maximum of 100 euros including VAT. You then omit details that are otherwise mandatory, such as your customer's details and a sequential invoice number.
However, your name and address, the date, a description of the delivery, and the VAT amount remain mandatory. A cash register receipt or fuel receipt thus counts as a simplified invoice. This short form is not allowed for deliveries abroad, and a credit invoice may also be a simplified invoice.
Sending an invoice abroad
If you send an invoice abroad, additional details are required. If you deliver to a business customer in another EU country, you must state their VAT identification number and the note that the VAT has been reverse-charged.
In the case of an intra-Community supply of goods within the EU, you usually charge 0% VAT and refer to that scheme. You send the payment itself via international payment with SEPA or SWIFT. Outside the EU, own export and customs rules apply, and in all cases, the invoice must state which VAT scheme you apply.
How long do you need to keep an invoice?
You must keep an invoice for at least 7 years. This retention obligation of the Dutch Tax and Customs Administration (Belastingdienst) applies to your entire administration, so both for the invoices you send and those you receive. You may store them digitally or on paper, as long as the invoice remains complete and legible. For data on immovable property, such as business premises, the period is extended to 10 years.
Create invoices with GoDutch
With GoDutch, you create and send compliant invoices, including recurring invoices, without a separate invoicing program. Via expense management, you forward receipts and invoices to your personal GoDutch email address, after which they automatically end up in your administration.
On the incoming side, you can have incoming invoices paid automatically: you upload an invoice and GoDutch reads the IBAN, the amount, the description, and the reference, so you don't retype anything and avoid double payments. Link your account to accounting software such as Exact, Twinfield, or Snelstart, and your transactions will sync automatically.
Easily open a business account with GoDutch
You can open a business account with GoDutch in 3 minutes, and you will have your IBAN and card within 1 day. You invoice, pay and automate your administration from a single app, with 24/7 help from real people. This way, you spend less time on invoices and have more time left to do business.
FAQ
Frequently asked questions about invoices
Is an invoice compulsory?
An invoice is compulsory when you supply to another entrepreneur. You are not always obliged to send an invoice to a private individual, although it is polite and useful for your administration. Even without VAT, for example under the KOR, you can and may simply invoice.
Does my VAT number need to be on the invoice?
Your VAT identification number must be on every invoice on which you charge VAT. Please note: this is the VAT ID, not your turnover tax number. If the VAT is reverse-charged to a business customer, you also include your customer's VAT number on the invoice.
What if a mandatory detail is missing from the invoice?
If a mandatory detail is missing, your invoice is not valid for the VAT administration. This can cause problems during an audit, and your customer may not be able to deduct the VAT. You can resolve this by sending a corrected invoice or a credit note.
What must be included on an invoice to a private individual?
An invoice to a private individual contains the same details as a business invoice. You are not always obliged to send an invoice to a private individual, but if you do, the standard invoicing requirements apply. If the amount is a maximum of 100 euros including VAT, a simplified invoice is sufficient.
May I create an invoice in Word or Excel?
You may create an invoice in Word or Excel as long as it meets the invoicing requirements. The disadvantage is that such a file is easy to modify; a PDF or billing software is safer and more professional. The 7-year retention obligation also applies to digital invoices.
How do I correct an error on an invoice?
You correct an error on an invoice with a credit note. On it, you refer to the invoice number of the original invoice and reverse the incorrect amount. After that, you can send a new, correct invoice if necessary. If the incorrect invoice had already been paid, you refund the overpaid amount or offset it.
