One of the most basic requirements of any business transaction is an invoice. Invoices have many purposes, such as serving as a receipt, an estimate of sale, and a payment amendment. With its well-developed infrastructure, easy access to international trade, and advantageous tax rates for foreign investors, the Netherlands is one of the most lucrative countries to start your business and carry out transactions.
As a member of the European Union (EU), the Netherlands has to comply with the rules that the EU established regarding the standardization of invoices. Know the essential details that should be included in every invoice when doing business in the Netherlands.
Types of Invoices in the Netherlands
E-invoices in the Netherlands
The most common types of invoices that see day-to-day use in the Netherlands are e-invoices and international invoices between EU member states.
An e-invoice is a type of invoice exchanged between a buyer and a seller through digital means. It is sent by the seller directly to their customer through an automated system. The customer would then receive the invoice in PDF format through an email attachment. This type of invoice is also mandatory if you provide services or goods for all Dutch government organizations.
When goods or services are exchanged between member states of the EU, an international invoice is issued. Because the tax rates between each country are different, international invoices must not contain value-added tax (VAT). Instead, the buyer will declare the VAT in their own countries. All international invoices need to include the VAT numbers of both the buyer and seller.
Meanwhile, for goods or services supplied to private individuals in the Netherlands, the seller can choose not to provide an invoice (a buyer is entitled to request an invoice).
Dutch Invoice Requirements
In order to adhere to the requirements mandated by the EU, the following information needs to be supplied when issuing an invoice in the Netherlands.
In order to adhere to the requirements mandated by the EU, the following information needs to be found when issuing an invoice in the Netherlands:
- Unique, sequential number identifying the invoice
- Your VAT identification number
- Invoice date
- Your business name and address
- The Dutch Commercial register number of your company
For e-invoices, there are three ways to submit them.
- Through PEPPOL (Pan-European Public Procurement Online), which is the standard platform used by the Netherlands to exchange digital invoices.
- Through email, if you have access to accounting software. The customer should receive the invoice as a PDF file as an attachment.
- Through an online portal.
What to Include in an Invoice
When providing an invoice in the Netherlands, the invoice you send your customer needs to contain the following for it to be considered a valid document:
- Date when the invoice was issued
- Full name and address of your client
- Breakdown of the goods or services provided
- Quantity of goods or services you provided
- Date when you supplied the goods or services (if different from when the invoice was issued)
- VAT number of the customer if the customer is from another EU Member State
- VAT rate
- Breakdown of the total VAT due based on the VAT rate
- Total VAT due
- Gross total due
On the other hand, a simplified invoice will suffice if the transaction does not exceed 100 EUR (including VAT) or in the case of amending a previous invoice. A simplified should include:
- Your business name and address
- VAT amount
- Date of invoice
- Type and quantity of goods or services provided
- Reference to the original invoice, if in the case of an amendment
Why Outsource your Invoicing Solutions?
The exchange of goods and services has become far easier than ever before given the advent of the digital age. With this change, e-invoices have become more common than their written counterparts. Through externalized invoicing, your company will have a competitive advantage. Here are some important reasons you should outsource your dutch invoices:
- Cost reduction – Having an internal accounts payable department involves training the proper staff and having the appropriate equipment and software, which will undoubtedly increase your overhead costs. By outsourcing the invoicing process, the need for an accounts payable department is eliminated.
- Efficiency – By hiring a specialist team dedicated to the invoicing process, payments can be made without delay. This will ensure payments are made accurately and in a timely manner.
- Centralized record-keeping – As a professional HR provider we have an organized system for keeping track of transactions.
- Expertise – By hiring an external team for your invoicing needs, you can rest assured that all your invoices will comply with all local laws and regulations.
INS Global as your Partner in the Netherlands
With more than 15 years of experience in client invoicing, employment services, payroll and tax, INS Global provides customized and streamlined solutions for your global expansion. We cater to clients all over the world, with dedicated experts who are knowledgeable in local customs and regulations for full compliance. Ready to do business in the Netherlands? Get in touch with our consultants today for comprehensive PEO services, HR management solutions, and more.