A Dutch invoice is a legal and tax document closely tied to value-added tax (VAT) reporting, payment timelines, and audit requirements. Small details, such as invoice timing, required fields, and VAT treatment, can directly affect cash flow and compliance.

Below, we’ll discuss how to simplify invoicing in the Netherlands, what information must appear on an invoice, how VAT registration and rates affect invoicing, and some common invoicing mistakes.

What’s in this article?

• How to simplify invoicing in the Netherlands
  
• What are the legal requirements for invoicing in the Netherlands?
  
• When can businesses use simplified invoices under Dutch VAT rules?
  
• What information must appear on a Dutch invoice to remain compliant?
  
• How do VAT rates and VAT registration affect invoicing in the Netherlands?
  
• What invoicing mistakes cause compliance issues or delayed payments?
  
• How to improve invoicing while staying compliant in the Netherlands
  
• How Stripe Invoicing can help
  

How to simplify invoicing in the Netherlands

Simplifying invoicing in the Netherlands requires you to eliminate errors from your invoicing process and reduce the number of steps involved. To do this, you need to understand the legal requirements for invoicing so you aren’t flagged for compliance issues or subject to payment delays or corrections. It can also help you reduce administrative work if you understand exactly what’s required. For example, if your business makes domestic, low-value sales, you can send simplified invoices that don’t include as much information as a full VAT invoice.

Whether you’re sending simplified invoices or not, the invoicing process doesn’t have to be overly complicated. And you can make the process even simpler by using automated invoicing tools to reduce manual work.

What are the legal requirements for invoicing in the Netherlands?

If you supply goods or services to another business or legal entity, you must issue an invoice for every transaction. Customer sales don’t always require an invoice, but customers can request one, and certain sectors are subject to additional invoicing rules.

Here’s how these invoices are legally required to function.

Invoice timing

Make sure the invoice is sent no later than the 15th day of the month following the month in which the goods or services were supplied. Repeatedly missing this deadline can create compliance risks during tax audits. It can also lead to late payments. In 2024, nearly one in five Dutch businesses were late in paying their invoices.

What’s on the invoice

Dutch law defines a fixed set of information that must appear on every invoice. Invoices missing required details might be treated as invalid, which can delay payment and prevent customers from reclaiming VAT.

Recordkeeping

Issued and received invoices must be retained for at least 7 years or 10 years for invoices related to real estate. Digital storage is permitted as long as invoices remain complete, readable, and unaltered throughout the retention period. If an invoice cannot be produced during a tax review, it might be treated as if it never existed. Consistent invoicing is necessary to demonstrate compliance and avoid disputes with the tax authority.

When can businesses use simplified invoices under Dutch VAT rules?

A business can use a simplified invoice when the total amount, including VAT, does not exceed €100. This option is designed for small, routine transactions where a full invoice would be too complex. Simplified invoices are also allowed when correcting or crediting a previously issued invoice. In such cases, the simplified invoice must reference the original invoice.

Even simplified invoices must include the supplier’s name and address, the invoice date, a description of the goods or services, and the VAT amount charged. These elements ensure the transaction can still be traced and audited.

Simplified invoices cannot be used for intra-EU supplies, distance sales, or transactions where VAT is reverse-charged to the customer. These scenarios require full invoices because they involve additional VAT reporting and identification requirements.

If you are unsure whether one of these scenarios applies to a transaction, issue a full invoice to be safe.

What information must appear on a Dutch invoice to remain compliant?

A compliant Dutch invoice says who sold what, to whom, when, for how much, and how VAT was handled.

Here are the specifics of what to include:

• Supplier identity: The invoice must include your full legal business name and address, along with your Chamber of Commerce (KVK) number if you’re registered.

• VAT identification number: If you’re VAT-registered, your Dutch VAT number must appear on the invoice. This allows both the customer and the tax authority to verify the VAT charged.

• Customer details: The invoice must show the customer’s full name and address. If the customer is a VAT-registered business in another EU country, their VAT number must also be included.

• Invoice date: Every invoice must state the date it was issued. This date determines the relevant VAT reporting period.

• Unique invoice number: Each invoice needs a unique number that fits within a sequential numbering system. The number must be traceable and can’t be reused.

• Date of supply: If the date the goods or services were supplied differs from the invoice date, that supply date must be stated.

• Description of goods or services: The invoice must describe what was supplied, including quantities, hours, or units where relevant.

• Net amounts: The price charged for each item or service must be shown excluding VAT. For transparency, the invoice should indicate any discounts that were applied.

• VAT rate applied: The applicable VAT rate must be shown for each item or group of items. If multiple VAT rates apply, they must be listed separately.

• VAT amount in euros: The VAT charged must be shown as a monetary amount in euros, even if the invoice is issued in another currency. If needed, the exchange rate used should be clear and consistent.

• Total amount payable: The invoice must show the total amount due, including VAT. This should reconcile with the net amount and VAT amounts listed above.

How do VAT rates and VAT registration affect invoicing in the Netherlands?

The Netherlands applies a standard VAT rate of 21% and a reduced rate of 9% for specific goods and services such as food, books, and certain labour services. The VAT rate must appear on all Dutch invoices—even when no VAT is charged (e.g., when it is zero-rated).

Here’s how different VAT treatments can impact the invoicing process.

Zero-rated transactions

A 0% VAT rate applies in limited cases, such as exports outside the EU. These invoices still require complete VAT documentation, even though no VAT is charged.

Small Businesses Scheme (KOR)

Businesses using the KOR do not charge VAT on invoices but must state that VAT is not charged under the small businesses scheme. Leaving VAT blank without explanation is not sufficient.

Reverse-charge situations

When VAT is reverse-charged to the customer, the invoice must state that it’s reverse-charged. It should also include the customer’s VAT number. This commonly applies to certain business-to-business (B2B) and cross-border EU transactions.

VAT-exempt supplies

If a supply is exempt from VAT by law, the invoice must state that an exemption applies and explain it. This prevents confusion during audits.

What invoicing mistakes cause compliance issues or delayed payments?

Mistakes can slow payments, frustrate customers, and create unnecessary risk during audits.

Here are some common issues to avoid:

• Missing information: Omitting mandatory details such as VAT numbers, customer addresses, or supply dates can invalidate an invoice. Customers might refuse to pay until a corrected invoice is issued.

• Broken invoice numbering: Skipped, duplicated, or reused invoice numbers undermine audit trails and raise compliance concerns.

• Incorrect VAT rates: Applying the wrong VAT rate or misclassifying goods or services can result in underpaid or overpaid VAT.

• VAT calculation errors: Mathematical mistakes, currency conversion errors, or incorrect VAT totals can delay approval and payment.

• Unclear line item descriptions: Vague descriptions make it harder for customers to approve invoices internally.

• Late invoicing: Sending invoices weeks after delivery increases the risk of missing legal deadlines and slows payment cycles.

• Missing VAT explanations: Failing to disclose reverse-charge, exemption, or zero-rate treatment creates compliance gaps.

• Weak recordkeeping: Losing invoices or failing to archive them properly breaks the seven-year retention requirement.

• Inaccessible electronic invoicing: Sending invoices in formats that customers can’t accept can delay processing.

How to improve invoicing while staying compliant in the Netherlands

Improving the invoicing process involves reducing manual work without losing control. Standardized invoice templates and automation make the billing process easier, faster, and more compliant. Invoicing tools can automatically generate sequential invoice numbers, calculate VAT, and populate customer details.

Consider digital invoices to speed up delivery, processing, and archiving even more. Allowing customers to pay directly from the invoice also reduces friction and shortens payment cycles. And you can set up automated reminders for unpaid invoices to help maintain consistent follow-up without manual effort.

Furthermore, choose an invoicing system that can handle multiple VAT treatments and currencies, and grow with your business. That kind of scalability can prevent future compliance issues. Also, consider how your data will be stored. Storing invoices digitally in a single system helps keep them accessible, readable, and compliant with retention requirements.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customise, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process, or get started today.