What requirements does the tax authorities impose on an invoice?
What requirements does the tax authorities impose on an invoice?
You had a great coaching session with your client…. Yes! Now you can send an invoice so you can receive your money!
But... Are you obliged to send an invoice? Why do you have to send an invoice?
And if you are obliged to send an invoice, what are the requirements that the tax authorities impose on an invoice? Rules, rules, rules… Well, you just have to know them. In this blog I will explain to you how things work. Then you also know how to send a good invoice to your customers.
Because an incorrect invoice can easily cost you a few euros...
What are the tax authorities' requirements for your invoice?
It is quite a list of invoice requirements, but fortunately it is not difficult:
- Your full name and address that is registered with the Chamber of Commerce.
- Customer's full name and address
- Your VAT identification number. That's the number that starts with 'NL'. Please note that you do not confuse this with your sales tax number, because that is the number that contains your BSN number and that number is used for communication with the tax authorities.
- Your Chamber of Commerce number
- The invoice date. After creating the invoice, try to send the invoice to your customer immediately.
- A unique invoice number for each invoice. It is also important that your invoice numbers are consecutive. It would of course be strange if you sent 4 invoices and the invoice numbers were, for example, 2022-005, 2022-006, 2022-008 and 2022-009... The tax authorities could then ask questions about invoice number 2022-007.
- What have you delivered? The invoice must clearly contain a description of your services or products.
- When you provided these services?
- How many units did you deliver?
- What price should you mention? You must state the price per unit excluding VAT, as well as the total VAT rate and the VAT amount (if applicable... Some entrepreneurs are not liable for VAT).
Now you may be thinking, “That's quite a list that your invoice must meet. Why is all that necessary?” The tax authorities set these invoice requirements so that they can properly check afterwards. It must be clear to whom you provided coaching sessions, for example, when and for what amount. This will prevent problems if your accounting or administration is scrutinized by the tax authorities.
Exceptions? Yes, for example with invoices of 100 euros or less.
Yes, as always there are exceptions this time. There is one important exception that I must honestly say has been well thought out by the tax authorities. If the invoice amount is €100 or lower (including VAT), there are fewer requirements for an invoice. The tax authorities call this a simplified invoice. The following requirements apply:
- The invoice date;
- The name and full address of your company;
- A description of the goods or services you have supplied and the price of these goods or services;
- The VAT amount.
This does not apply to services you provide to foreign customers...
Other details regarding invoice requirements.
It is also good to know that there are more details in the following cases:
- A change invoice or collective invoice;
- An invoice exempt from VAT;
- Invoices to customers abroad;
If all goes well, you now know everything about how you as a coach can create a good invoice.
