It can sometimes be confusing: when is an invoice exempt from VAT, do you have to put VAT on an invoice and when not? And what exactly does it mean when VAT is transferred? In this blog, we explain what you need to know about invoices with and without VAT, VAT exemption, and VAT-referred invoices.
What is a VAT invoice?
A VAT invoice is an invoice on which VAT is clearly stated. In the Netherlands, it is compulsory to charge VAT on most goods and services. The VAT rates that may apply are 0%, 9%, or 21%. A VAT invoice must meet certain requirements, such as:
- The supplier’s VAT number.
- The customer’s VAT number (for intra-community supplies).
- The amount excluding VAT, the VAT amount and the total including VAT.
- VAT rates applied.
When is an invoice exempt from VAT?
Some businesses and services are exempt from VAT. This means that no VAT is charged. Examples of exempt sectors are:
- Education
- Healthcare
- Childcare
- Financial services
If you send an invoice that is exempt from VAT, you need to explicitly state this, for example by putting on the invoice, “Exempt from VAT under section 11 of the Turnover Tax Act 1968.”
What is an invoice without VAT?
An invoice without VAT is used in situations where no VAT needs to be charged. This could be the case, for example, if you:
- Are an entrepreneur who uses the Small Business Administration (KOR) scheme.
- Doing business with customers outside the European Union.
- Provides goods or services covered by an exemption.
Again, it is important to clearly state why no VAT has been charged.
What does reverse charge VAT mean?
With a VAT-referred invoice, VAT is not charged by the supplier, but the customer is responsible for the VAT return. This often occurs with:
- Deliveries within the European Union between entrepreneurs.
- Specific sectors such as construction or IT.
A VAT-referred invoice must clearly state “VAT-referred.” In addition, you state the amount excluding VAT, but do not charge VAT on the total amount.
Processing invoices with TriFact365
Processing invoices can be a time-consuming task, especially when you have to take into account different VAT rules. TriFact365 offers an efficient solution for processing and checking invoices digitally.
Through automatic recognition of invoice data and a link to accounting software, TriFact365 ensures you spend less time on manual entry.
This helps not only to avoid errors, but also to process invoices faster and clearly. Whether you work with standard invoices, VAT-deferred invoices or exempt invoices.
Preparing the right invoice with or without VAT depends on your situation and the rules that apply. Make sure you are always clear in your communication and that your invoices meet the legal requirements. If in doubt, you can always contact an accountant or the Tax Office.
