Why Branch Registration in the Netherlands is Important to consider as option to enter a new market
Registering a branch is an efficient, cost-effective way to expand your business into a foreign market. The Netherlands, with its robust...
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Why should you issue an invoice at all?
The most basic purpose for an invoice is to keep a record of sales. It provides a way to track the date a good was sold, how much money was paid and any outstanding debt. An invoice can also track which employees make sales and which items they sell. For VAT the invoice is very important. When the invoice does not meet the requirements it is possible that the VAT is not deductible. The invoice has to be clear for you, your customer and the Dutch tax authorities. What are the requirements?
We have drawn up an example invoice of a (fictitious) self-employed person who works in business services.
Click on the pictures below to download the sample invoices for free (this file opens in PDF). Under the example invoices, the article continues with an explanation of what information you should always include on your invoices. This way you can be sure that you will not forget anything.
Invoices need to provide, at least, the below mentioned information:
Header
The complete name and address of the selling company;
The complete name and address of the buyer;
The VAT number of the selling company;
The Chamber of Commerce number of the selling company;
The date on which the invoice is made up;
A unique, continuous and subsequent invoice number.
Invoice line
A detailed description of the goods or services supplied;
The amount of goods or time spent on services;
The delivery date;
The amount excluding VAT;
The used VAT rate;
The amount of VAT due.
All documents that meet the above mentioned requirements can be considered to be an invoice.
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Obligated invoice information in The EU and outside of The EU
When you are doing business from The Netherlands with another (EU) country, the invoice has to meet subsequent requirements on top of the already mentioned requirements. These subsequent requirements are:
The VAT number of the foreign company
VAT
Services, VAT reversed charge (0%) has to be mentioned
Goods, VAT exempt has to be mentioned
Example:
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1. VAT number / VAT identification number (VAT ID)
If you register in the Trade Register of the Chamber of Commerce, you will receive a number from the Tax Authorities. This is proof to the tax authorities that you are an 'entrepreneur for turnover tax'.
Not subject to VAT
exceptions, but most entrepreneurs are subject to VAT: in that case you charge turnover tax on amounts that you charge to customers or clients. You then report this (often several times a year) to the tax authorities.
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2. Chamber of Commerce number
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In addition to a VAT number, you will automatically receive a Chamber of Commerce number when you register with the Chamber of Commerce (KvK). This number indicates that your company is officially registered in the Chamber of Commerce database and must also be stated on every invoice.
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3. Invoice number
Each invoice must have a different number. In principle, you can determine the numbering yourself. To keep your business administration as clear as possible, it is useful to arrange the invoices per year. This is especially recommended for entrepreneurs who regularly work for the same customers.
Every January you start with a clean slate and count from the first invoice. For 2019, the first invoice would be 2019001, the second 2019002 and so on. When you arrive at 2019010 at some point, that counts easily.
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4. Invoice date and payment term
The invoice date is the date on which you send the invoice to a customer or client. It is customary to indicate clearly on invoices the date by which the payment must be paid (at the latest). The usual payment term is usually between fourteen and thirty days.
It is advisable to also discuss the payment term with your customer or client when accepting the assignment, so that all parties know in advance where they stand.
Do you forget to indicate a specific payment term on the invoice?
Then a period of thirty days automatically applies. If the (agreed) term is exceeded, you may charge interest.
Do you already work freelance, but do not have a company (yet)? Then put your own name and address on the invoice.
5. (Company) name and address
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In addition to the VAT and Chamber of Commerce number, you must of course also state your name, company name, address and contact details.
Are you working as a freelancer, but have you not yet set up your own company? In that case, only put your own name and address on the invoice.
6. (Company) name and address of the customer
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This is the name and (company) address of the client. There are no hard rules on where you should state these addresses and contact details, but it is customary to put this information above the calculation and description of the work.
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7. Date and description of delivery / service
When did you carry out the work? And how long did this take? Describe and specify the amount of hours you charge as best you can.
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8. VAT rate
Most entrepreneurs charge sales tax and the following must always indicate their bills:
the amount excluding VAT
any discounts not included in the unit price included
the applied VAT
reimbursement
VAT amount in euros
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Category | Business Formation
This article will inform you on the different types of Dutch legal entities
How to start a sole proprietorship in the Netherlands in a few simple steps.
A holding company is really just a BV (Private Limited Company).
In this article we will explain you the details of the Formation Deed, and why they are so important.
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Registered address requirement
The legal requirements and conditions of your Dutch virtual office.
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Our Services
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What is House of Companies?House of Companies is in first instance a new concept in offering flexible office solutions and registered office addresses, covering more than 4.000 locations. Aside from full service office facilities (from dealing with your mail, to answering the phone) , we offer a ‘branch out membership’ which provides you the tools to start a new business, or keep your business running, at the lowest costs possible. House of Companies is located at an amazing mansion, on a 50.000m2 estate in the Netherlands offering room for hundreds of companies. But we also offer +4.000 locations in cooperation with partners.
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Can anybody use the services of House of Companies?Yes, basically anybody can use the services of the House of Companies. Even if you are not an entrepreneur yet! Our services are very low-key which allows companies of any sizes to expand overseas. We do have a strict onboarding process in place, and don’t deal with companies focused on tax avoidance, or who have operations in sanctioned countries, as well as certain sensitive industries.
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Is using a registered office address legal?Yes, 100% legal! Our team has over 10 years experience in providing registered office services, and our locations meet the standards of the Dutch Chamber of Commerce. Our locations provide a full time reception, and our locations are always able to provide you a working space when need be.
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Do I pay taxes when I use a virtual office in the Netherlands?A ‘virtual office’ typically does not pay taxes (yet). This is not due to a special tax status, but simply because a virtual office has no actual operations (or substance) yet (or has not started to make a profit, doing sales, or employing staff). In fact, a ‘virtual office’ is typically considered a ‘representative office’ and is not required to be registered at the Chamber of Commerce. Such requirements might change, once you perform any actual services from the Netherlands, or goods are stored and processed here. In case of doubt, it might be necessary to discuss your situation with a lawyer or accountant, but much information on this topic is available in our Dashboard.
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Does a Dutch company require a local address?In many cases a local company registration requires a local business address. Especially in (Western) European countries this is very common. There are some exceptions, especially in case of a branch registration (or a representative office). A registered office address is required to receive official government letters, and in come cases also to open a local corporate bank account.
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Can my Dutch business open a bank account?Yes, a business dealing on the Dutch market can also open a corporate bank account. However, this is becoming more challenging. House of Companies can inform you about European banks that can open bank accounts for any kind of European entity, without a visit to the bank required.
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When is a registered office address convenient for me?A registered office address is convenient for any kind of business, that is planning to expand to a new market, and is taking it step by step. A registered office address (or virtual office) allows you to explore a new market, while limiting your expenses. It’s not about being ‘virtual’, but it’s about avoiding as much bureaucracy and legal expenses as you can, while your business is not yet at its full capacity. Our tools allow you to get an understanding of the legal framework of a country, so you are able to make the decisions for yourself, rather than having to rely on an accountant or lawyer.
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Can I really submit my corporate tax return myself, without any charges?"Yes, anybody can submit their corporate tax return themselves, without any help from an accountant. Our Dashboard provides you the detailed information, step by step, on how to login to your online Tax Portal, and to file your tax return. Obviously, the more complicated your company activities (and transactions) the more complex your tax return will look like. But if you have almost no operations, then you can save thousands of euros in accounting fees, without requiring any accounting skills! Once your company grows, we offer more detailed information, so you can learn along the way. Or you can decide to involve an accountant at that stage.
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