This is the continuation of the legal requirements that your invoice has to meet
When should you send the invoice?
You are required to issue an invoice before the 15th of the month after the month in which you ship your product or provide your service. For example: you provide on June 23, a corporate training, then you are to issue the invoice not later than July 15.
To whom do you issue an invoice?
For individuals, you do not need to create invoice, for example if you purchase a dress in the shop. Only if you provide services to or sell products to entrepreneurs, you are required to issued an invoice. However, should you issue an invoice to a private individual nevertheless, then you can receive a penalty if the invoice does not meet the invoice requirements.
Additional data on your invoice.
In addition to the previous presented information, the following information you need to include in the invoice from January 1, 2013, if any of the following special rules apply:
• If you draw up your invoice by yourself (instead of the supplier), include: ‘ self-billing`. Both parties should, prior to self-billing, draw up an agreement. Self/billing is an undesired situation.;
• In some cases concern special VAT-rules. If these special VAT-rules apply, include: ‘ margin scheme travel agents/second hand goods/works of art/collectors items and antiques:
• As a reverse charge mechanism applies, include: ‘ reverse charge`.
0% VAT rate in EU transactions.
When applies the reverse charge mechanism?
The reverse charge mechanism applies if you have a service, delivers to, or purchase by entrepreneurs from other EU countries. The reverse charge mechanism may also apply if you services to entrepreneurs from non-EU countries.
How to send the invoice to entrepreneurs in other countries?:
• If you deliver goods to entrepreneurs in other EU countries, make a note on the invoice of the VAT identification number of client entrepreneur, then you can use the 0% VAT rate;
• Do you provide services to entrepreneurs in other EU countries? First determine in which country the services according to the VAT rules are carried out and whether you should switch the VAT to entrepreneurs. We have 2 options:
1. If you should switch the VAT to entrepreneurs, make a note on the invoice of the VAT identification number of the entrepreneur. No VAT is mention on the invoice, instead you mention: “VAT shifting”. You complete the Dutch VAT return at section 3 ‘ Performance to or abroad ‘;
2. If the service is carried out in the country of your customer then it become more complex, you might need to file a VAT return in the country of the customer. We suggest to contact an expert in that case. We will be happy to assist.
• If you deliver goods to entrepreneurs in countries outside the EU, you will send an invoice with 0% VAT.
VAT is a complex legislation. Every situation has its own rules and exceptions. Please do not hesitate to contact us, should you require any further information or assistance.