As a business owner, you send your customers invoices for the services or products you provide. The appearance of this invoice isn't generally important, but there are some mandatory elements that must be included. This blog explains how to create a legally valid invoice and when you should send it.
When do you send an invoice?
As an entrepreneur, you are required to send an invoice when doing business with other entrepreneurs. You must also invoice legal entities that are not entrepreneurs, such as foundations. If you only supply products or services to private individuals, you are generally not required to issue an invoice. The invoice must be sent no later than the 15th day of the month following the month in which you performed the work. This means, for example, that all invoices for November must be sent no later than December 15th.
What should be included?
You're free to customize the appearance of your invoice. For example, you can decide whether to include a logo, the colors you use, and the font you use. However, the Dutch Tax and Customs Administration is strict about the information it must contain. Every invoice must contain at least the following information:
- The full name and address of both you and your customer
- Your Chamber of Commerce registration number
- Your VAT identification number
- The invoice date and a unique invoice number. This number must be consecutive.
- What goods or services were supplied and when
- The amount you charge, excluding VAT
- The applicable VAT rate and the VAT amount
Of course, there are always exceptions. For example, you may provide less information if your invoices do not exceed €100 including VAT. At the same time, you must provide more information if you send invoices to customers abroad. A complete list of these exceptions can be found on the website of the Tax Authorities.
Getting creative?
While there are no rules governing how an invoice should look, it's important that it's clear and concise. This way, your customer can see at a glance what's expected of them. Therefore, it's not advisable to go overboard with bright colors and crazy images. Here are a few tips for adding the finishing touches to your invoice:
- Put your logo on it
- Please state your IBAN and the payment term at the bottom of the invoice.
- Leave space for a note or personal message
- Use the footnote to reiterate your standard information
- Use a payment link so that customers can pay quickly and easily can pay
Spending some time on the format and layout of your invoice will save you a lot of hassle later and prevent errors. There are plenty of examples of clear invoices available online. And of course, you can also use e-invoicing!
