Invoicing in the Netherlands
If you run a business, you are required to issue invoices for the goods and services you sell.
When to issue an invoice?
You must issue an invoice:
- For all goods and services provided to other businesses (including foreign firms and non-business entities)
- If you receive an upfront payment (prefinanced payment) for goods and services that will be purchased from you
- No later than the 15th day of the month after goods or services were provided
- You must also keep a copy of the invoice for at least 7 years
Selling goods and services to consumersIf you sell goods and services to consumers you may be exempt from issuing an invoice. This normally applies for:
- Whole sale businesses in groceries, tobacco, commodities for dental care or supplies of dental appliances when at least 80% of your customers are businesses
- Delivering a new or second-hand 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:
- name and address of the supplier
- VAT identification number of the supplier
- your name and address
- invoice number
- invoice date
- the date on which the goods or services were supplied
- quantity and type of goods supplied
- 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 the export of goods to other EU countries and for certain services involved, such as transport services. Your VAT identification number must also be included on the invoice if it involves reverse-charging (for VAT purposes).
Your invoice should also state whether a special VAT regulation applies.
Exempted from obligatory invoicing
- Taxis and public transport businesses
- Hotels, bars and restaurants
- Businesses exempted from VAT for goods or services
- Businesses which have agreed with their client that this client should issue the invoice (eg in an auction)
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
An invoice does not need to be issued for public transport or taxis.
Food and drink in catering establishments
VAT charged on purchases from hotels, bars and restaurants cannot be refunded through the VAT system, so a VAT invoice does not need to be issued. There may be some exceptions: check with a Blue Umbrella expert.
Invoices relating to agriculture
If you purchase goods or services from an entrepreneur who makes use of a special VAT exemption called 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 and your supplier must state on the invoice that he has applied the agricultural scheme and supply you with an agricultural scheme declaration the agricultural scheme applies.
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