Invoices are an essential part of any business. They not only provide an overview of your income, but are also important for tax returns and meet legal requirements. In this article, you will read what is mandatory on an invoice and get a practical example.
What is mandatory on an invoice?
According to Dutch and European regulations, an invoice must meet certain requirements. You must include your company’s details, such as the name of your company, your address details (no PO Box), your Chamber of Commerce number and your VAT number. Customer details are also required, including the customer’s name and address details.
An invoice must contain a unique invoice number that is arranged in ascending order, along with the date the invoice was issued. Furthermore, a clear description of the goods or services provided is mandatory, including the date(s) of delivery or performance of the service.
The amounts should also be clearly stated, such as the net amount (excluding VAT), the VAT rate (e.g. 21%, 9%, or 0%), the VAT amount and the total amount including VAT. Finally, your payment details, such as your IBAN account number, and any payment terms, such as a 14- or 30-day payment period, should be included. If there are any special exemptions or reverse charge schemes, such as “VAT reverse charge”, this should also be mentioned.
Example of an invoice
Company name: XYZ Webdesign
Address: Nieuweweg 123, 1234 AB Amsterdam
Chamber of Commerce number: 12345678
VAT number: NL123456789B01
Invoice number: 2024001
Invoice date: 31 December 2024
Client:
ABC Marketing
Oudeweg 456
5678 CD Utrecht
| Description | Number | Price per piece | Total |
|---|---|---|---|
| New website design | 1 | € 1.500,00 | € 1.500,00 |
| Maintenance contract (month) | 6 | € 150,00 | € 900,00 |
Subtotal: € 2,400.00
VAT (21%): € 504.00
Total amount: € 2,904.00
IBAN: NL12BANK3456789012
Payment term: 14 days (before 14 January 2025)
Common invoicing mistakes
Common invoicing mistakes include forgetting to use a unique invoice number, incorrect or missing VAT information and a lack of a clear description of services or products. Not mentioning a payment term can also cause confusion.
By putting the right information on your invoices, you avoid problems with customers and the tax authorities. Moreover, it helps you keep your records in order. Take this example and make sure every invoice meets the legal requirements!
