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What VAT number on invoice in the Netherlands?

02.11.2023
What VAT number on invoice in the Netherlands?

Sending invoices is an important part of business. It ensures that businesses can show what services they have provided, and it allows them to receive payment for their services or products. An essential element of the invoice is the VAT number, but exactly what VAT number should you include on the invoice?

Why is the VAT number so important?

The VAT number, also known as the VAT identification number or VAT ID, is a unique number assigned to every entrepreneur in the European Union. This number is important because it allows tax authorities to track transactions between businesses within the EU.

When you supply goods or services to another business in the EU, you have to charge VAT on these transactions. By including your customer’s VAT number on the invoice, the tax authorities can check that the correct VAT has been paid.

What VAT number do you need to state?

There are a few different scenarios that determine which VAT number you should include on an invoice:

  • Sales within your own country: If you supply goods or services within your own country, you must include your own VAT number on the invoice.
  • Sales to a company in another EU country: If you are supplying to a company in another EU country, and this company also has a VAT number, you must include that company’s VAT number on the invoice.
  • Sales to a consumer in another EU country: If you deliver to a private person in another EU country, you still use your own VAT number.
  • Sales outside the EU: If you supply goods or services to customers outside the EU, you do not have to charge VAT, and therefore do not have to include a VAT number on the invoice.

Why different numbers for different situations?

The reason you have to include different VAT numbers depends on EU VAT rules. These rules are designed to ensure that businesses pay the right amount of VAT, and to prevent fraud.

When you sell within your own country, it is relatively simple: you charge VAT at your own country’s rate and list your own VAT number.

But when you sell to another EU country, things get a bit more complicated. This is because each EU country has its own VAT rate. So, by mentioning your customer’s VAT number, you indicate that the transaction took place between two EU countries and that the customer is responsible for paying VAT in his own country.

Avoiding mistakes: some tips

Errors on invoices, especially regarding VAT numbers, can lead to fines and other problems. Here are some tips to avoid errors:

  • Double-check the VAT number: Before sending an invoice, always check your customer’s VAT number. Make sure it is correct and matches the information you have.
  • Keep records: Make sure you keep clear records of all your transactions, including your customers’ VAT numbers. This will help you if there are ever any questions about your invoices.
  • Keep up to date with regulations: VAT rules can change. So it is important to keep abreast of any changes in regulations so that you always include the correct information on your invoices.

Listing the correct VAT number on your invoices is essential. Not only does it ensure compliance with the law, but it also helps build trust with your customers. By taking the time to state the correct VAT number and keeping clear records, you ensure that your business keeps running smoothly and remains free of any legal problems.

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