Netherlands VAT invoicing rules for technical founders

Standard, reduced, and zero rates

The Netherlands has three VAT rates. The general rate is 21%. The reduced rate is 9%, and the 0% rate applies to supplies such as goods shipped from the Netherlands to customers abroad and goods held in a customs warehouse.

The 9% rate covers goods and services such as food and drink, medicines, books, newspapers and magazines, haircuts, bicycle repair, passenger transport, and campsite accommodation. E-books qualify only when they are comparable to a printed publication at 9%. Because the rate depends on the goods or service, map each product code to a rate rather than applying one rate to the whole account.

Mandatory invoice content

Your invoice must show:

• Your legal name and your customer's legal name, with full addresses. A PO box number alone is not enough.
• Your VAT identification number, which starts with "NL".
• Your KvK (Chamber of Commerce) number, if you are registered with the KvK.
• The invoice date and a sequential invoice number. Each number may appear only once.
• The type and quantity of goods, or the type and scope of services.
• The delivery date, or the date of a prepayment.
• The amount excluding VAT, the VAT rate, and the VAT amount. If you supply at different rates, show a separate amount for each rate.

Invoices of €100 or less including VAT need fewer details, and cross-border trade requires extra details. Build your validation rules for both cases.

When to issue an invoice

Issue the invoice no later than the 15th day of the month after the month of delivery. A prepayment for goods or services also requires an invoice. Prepayments for intra-community supplies of goods do not.

Record retention

Keep your VAT administration for seven years. Basic records, such as the general ledger and the sales and purchase administration, must always be kept for seven years. Data on real estate and rights to real estate must be kept for 10 years. The period starts when the data loses its current relevance, not necessarily on the invoice date. A four-year contract, for example, stays in the administration for four years before the seven-year period begins.

Next step

Review the developer documentation to model rates, invoices, and retention in your integration.