If you run a business than you are required to issue invoices for your goods and services you sell. Your invoice administration is an essential element in your business administration. When to issue an invoice and what to include on your invoice is provided in below sections.
When to issue an invoice?
The following situations require that you issue an invoice:
- Issue an invoice for all goods and services provided to other businesses (including foreign and non-foreign societies and other non-business entities)
- Issue an invoice if you receive an upfront payment (prefinanced payment) for purchased goods and services
- Issue an invoice no later than the 15th day of the following month of a delivered good or provided service
- Retain a copy of the invoice for at least 7 years
Selling Goods and Services to consumers
- Whole sales businesses in groceries, tabacoos, commodities for dental care or supplies of dental appliances en at least 80% of your customers are businesses,
- Delivering a new or occasion transport vehicle to another consumer in an EU country
- Selling online goods and services
If you purchase goods or services in the Netherlands then you will receive an invoice from your supplier. This invoice must satisfy a number of requirements. Every invoice you receive must include the following data:
- the name and address of the supplier
- the VAT identification number of the supplier
- your name and address
- the invoice number
- the invoice date
- the date on which the goods or services were supplied
- the quantity and type of goods supplied
- the nature and type of services supplied
Invoices must also include the following data for every VAT tariff or exemption:
- the price per piece or unit, excluding VAT
- any reductions that are not included in the price
- the VAT tariff that has been applied
- the cost (the price excluding VAT)
- in case of advance payment: the date of payment, if this is different from the invoice date
- the amount of VAT
In some cases your VAT identification number must also be included on the invoice. This is the case for export of goods to other EU countries and for certain services involved thereby, such as transport services. Your VAT identification number must also be included on the invoice in cases of reverse-charging.
Furthermore it must be apparent from the invoice whether a special VAT regulation applies.
Different or supplementary requirements apply to invoices in the following situations.
Exempted from invoice requirement
- Taxi's and public transport businesses
- Catering industry
- Businesses exempted from VAT for goods or services
- Businesses which agreed with their client to have an invoice issues by the latter
Have you purchased fuel for your vehicle? Your name and address might not be included on the receipt. The condition applies to VAT deduction that it must be possible to trace your name and address as client through the method of payment used. This is the case if, for example, you pay by bank card, credit card or fuel card.
Public transport and taxis
Do you use public transport or taxis? An invoice does not need to be issued for such services.
Food and drink in catering establishments
Do you purchase food and drink for consumption in catering establishments? The VAT charged over these costs is not deductible. Therefore an invoice does not need to be issued in such cases.
Invoices relating to agriculture
Do you purchase goods or services from an entrepreneur who makes use of the agricultural scheme? In such cases you will be issued with an invoice without VAT and you are permitted to deduct 5.4% of the invoice amount as input tax. However you will need to have an agricultural scheme declaration.
Your supplier must state on the invoice that he has applied the agricultural scheme and supply you with an agricultural scheme declaration.
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