For businesses in the Netherlands market, invoicing is an exact and regulated process. Dutch tax law is strict about what you need to include, when you need to send it, and how to handle value-added tax (VAT) – especially when you're billing across borders. Small mistakes can delay payments or cause your customers to reject the invoice. Below, we'll explain how to send invoices in the Netherlands that are both compliant and professional.

What's in this article?

• What is a pro forma invoice?
  
• What are the legal requirements to send invoices in the Netherlands?
  
• How does VAT need to be displayed on invoices?
  
• What are the rules for electronic invoicing in the Netherlands?
  

What is a pro forma invoice?

A pro forma invoice is a preliminary invoice sent to a buyer before a shipment or delivery of goods or services. It outlines the details of the transaction, including a description of the goods or services, unit prices, shipping costs, and taxes.

Pro forma invoices aren't required in the Netherlands, but they are often issued before goods or services are delivered as a cost estimate for buyers. These don't hold the same weight as an actual invoice and should be followed by a formal invoice for proper accounting and tax reporting.

What are the legal requirements to send invoices in the Netherlands?

In the Netherlands, an invoice is more than a request for payment: it is a legally regulated document that affects tax reporting, cash flow, and your ability to enforce payment. Improper invoices can lead to delayed or denied payments, refused VAT deductions, and fines for non-compliant invoicing.

Here's what Dutch law requires for businesses Based in the Netherlands.

You must issue invoices on time

Businesses are required to send invoices no later than the 15th day of the month after the month of supply. For example, if you delivered goods or completed a service on 10 April, the invoice must be sent by 15 May.

You must always invoice in B2B transactions

If you supply goods or services to another business or legal entity, you must issue a proper invoice. While B2C transactions only require an invoice under certain conditions, B2B transactions always require an invoice.

You must give every invoice a unique number

Each invoice must have a unique and sequential number, with no gaps in the sequence. You can have multiple series (e.g. one for Dutch customers, one for foreign customers), but each series must be internally consistent. Missing or duplicate numbers raise warning signals during tax audits and can trigger additional scrutiny from the Belastingdienst, the Dutch tax authority.

If you discover a gap or duplication in your sequence, clearly document the reason and correct it.

You must include specific information on every invoice

Dutch VAT law defines what a business must include on an invoice:

• The supplier's name and address
  
• The supplier's VAT identification number
  
• The supplier's business registration (KVK) number, if applicable
  
• The customer's name and address
  
• The invoice number and date
  
• The delivery date (if different from the invoice date)
  
• A detailed description of goods or services provided, plus the quantity and unit price
  
• The amount being charged, broken down into the following:
  
  • The total excluding VAT
    
  • The VAT rate(s) applied
    
  • The total VAT amount charged
    
  • Any discounts applied
    
  • The total due including VAT
    
• The customer's VAT number (for cross-border B2B transactions or transactions where reverse charge applies)
  
• Special notations if applicable (e.g. reverse-charged VAT)
  

An invoice missing required details might be rejected by your customer in a B2B transaction, as businesses can only deduct VAT if the invoice fully complies.

You must retain invoices for a minimum of seven years

Dutch tax law requires businesses to keep copies of all issued and received invoices for at least seven years. If the invoice relates to real estate, the retention period is ten years. Both paper and electronic formats are acceptable, as long as the invoices remain accessible, readable, and unaltered.

If you scan paper invoices to store them digitally, the scanned versions must be complete and faithful reproductions of the originals. Saving a partial version doesn't satisfy legal standards.

Because invoices often include personal data such as names, email addresses, or physical addresses, they fall under the scope of the General Data Protection Regulation (GDPR). Businesses must not store personal data indefinitely unless they have a valid reason for continued storage (e.g. ongoing litigation). They also can't use customers' personal information for anything other than invoicing.

How does VAT need to be displayed on invoices?

In the Netherlands, VAT must be displayed clearly, completely, and correctly.

You must show the applicable VAT rate for each line item or each group of similar items. The Dutch rates are 21% (general rate), 9% (reduced rate), or 0% (rate for cross-border sales). If your invoice includes items at different VAT rates, you must specify the correct rate next to each relevant amount. Customers and tax authorities need to be able to match the VAT charge to each item.

In addition to stating the VAT rate applied, you must state the VAT amount charged. For example, if you're selling an item for €1,000 and applying 21% VAT, you must show a separate VAT amount of €210.

The VAT amount charged must always be shown in euros, even if you invoice the customer in a different currency. If you're invoicing in another currency, either state the VAT in euros alongside the foreign currency totals, or include the exchange rate used to calculate the VAT in euros.

It's common for businesses to include a short table or summary with the required information: the base amount, the VAT rate applied, and the VAT amount charged for each rate. The invoice must also clearly display the grand total – the sum of all base amounts plus the total VAT. Without this, a B2B customer can't reclaim VAT properly, and the invoice might be considered non-compliant.

A typical structure looks like this:

Subtotal (excl. VAT): €1,000
VAT 21%: €210
Total (incl. VAT): €1,210

If an invoice does not include VAT – whether due to exemptions, reverse charge rules, or exports – you can't leave the VAT fields blank. You must clearly state the reason, which might be:

• "VAT reverse-charged" or "btw verlegd"
  
• "VAT exempt under the small businesses scheme (KOR)"
  
• "0% VAT – export outside the EU"
  

This can help prevent confusion and protect both you and your customer during tax audits. Failing to explain a missing VAT charge can invalidate the invoice for VAT purposes.

What are the rules for electronic invoicing in the Netherlands?

Electronic invoicing is fully accepted under Dutch law. To meet legal requirements, your digital invoices must satisfy the same standards as paper ones, plus a few extra conditions around authenticity and storage.

Invoice content

An electronic invoice must include exactly the same information as a paper invoice. The format (e.g. XML, JSON) doesn't change the content rules.

Customer consent

Before sending an electronic invoice, you need your customer's consent. If a customer doesn't want or can't accept an e-invoice, you are legally obliged to accommodate them unless you're dealing with a government body.

Government invoicing

If you send invoices to Dutch government bodies (e.g. ministries, municipalities, agencies), you must use electronic invoices. You typically send these e-invoices via the Peppol network.

If your business doesn't usually deal with government contracts, this won't affect you. But if your business does, you'll need to set up a system that can send compliant e-invoices.

Authenticity and integrity

Authenticity and integrity are an integral part of the invoicing process. It must be clear who issued the invoice, and the invoice information must not be altered. Businesses often use electronic signatures to prevent fraudulent e-invoices.

Storage requirements

Like other types of invoices, e-invoices must also be stored for at least seven years (or ten years if related to real estate transactions). The stored invoice must remain readable, accessible, and retrievable throughout the retention period.

To meet these requirements without complications, it's highly recommended that businesses have a backup system in place, such as secure cloud storage with proper access controls.