Netherlands E-invoicing
The Netherlands’ e-invoicing journey started in 2019 when all public authorities were obligated to receive electronic invoices from their suppliers. It is estimated that roughly 1.6 million invoices are exchanged annually with the government.
Even though e-invoicing in business relations is still not mandatory, there are considerations to keep in mind when implementing e-invoicing between businesses voluntarily.
This page provides an overview of e-invoicing in The Netherlands, from its start to the current day. Be sure to bookmark the page to keep updated with future updates.
Table of contents
1. Key considerations for B2B e-invoicing in the Netherlands
2. Characteristics of B2G electronic invoicing in the Netherlands
3. Common data formats used in the Netherlands
4. Timeline of e-invoicing adoption in the Netherlands
5. Penalties: What happens if I don’t comply with e-invoicing in the Netherlands?
Many businesses in The Netherlands voluntarily opt-in for e-invoicing in their business relations, unlocking the benefits of digitisation.
Key considerations companies need to be aware of when implementing e-invoicing in the country include:
- Obtaining the consent of the buyer to send an electronic invoice.
- Ensuring integrity and authenticity – any means are accepted, from internal process controls up to digitally signing the e-invoices.
- The retention period for electronic invoices is seven years. The e-invoices must be archived in such a way as to guarantee their integrity, authenticity and availability during the retention period.
Characteristics of B2G electronic invoicing in the Netherlands
Since 2020, suppliers of central Dutch authorities have been obliged to submit e-invoices to their public contractors. The Netherlands has implemented the Peppol interoperability network to facilitate the exchange of e-invoices with governmental bodies.
The mandatory identifier that is used to route e-invoices to the central government organisations is the OIN number (Organisatie-identificatienummer).
There are three methods of submitting e-invoices:
- Via Accounting Software, connected to Peppol.
- Through e-invoicing service providers access points of Peppol.
- Using the designated government Supplier Portal.
Common data formats used in the Netherlands
E-invoices in the Netherlands can be sent and received in several formats, including:
- SI-UBL 2.0 – The UBL implementation of NLCIUS, addressing local Dutch requirements in e-invoicing to government and businesses. It is based on the European Standard EN 16931, and it is the preferred Dutch format.
- Peppol BIS 3.0 – The interoperability format in the Peppol network. Based on the European Standard EN 16931.
- Other industry formats used within the country – UBL-OHLN, 4.5. SETU (HR – XML), etc.
Timeline of e-invoicing adoption in the Netherlands
Here are the key dates in the Netherlands’ e-invoicing journey.
- 1 July 2016: The Dutch government transposes Directive 2014/55/EU into national law
- 18 April 2019: The deadline for government suppliers to implement B2G e-invoicing
- 1 October 2020: The Dutch Peppol Authority (NPa or Nederlandse Peppolautoriteit) becomes a governmental body and oversees the Peppol network within the country.
- 1 July 2030 – Dutch businesses need to comply with VAT in the Digital Age requirements – which include mandatory e-invoicing and e-reporting for cross-border B2B transactions.
Penalties: What happens if I don’t comply with e-invoicing in the Netherlands?
Taxpayers should expect to receive fines for failing to meet invoicing requirements in The Netherlands.
While sending electronic invoices for B2B transactions is not mandated, it is required for private businesses that supply the Dutch central government. Failure to comply with the rules could result in a financial penalty.
Setting up e-invoicing in the Netherlands with Sovos
E-invoicing is on the rise globally, especially in Europe, where the EU’s ViDA initiative is imminently arriving.
While electronic invoicing is a worldwide trend, it is fragmented and requires a nuanced approach wherever you do business. It’s important to choose a single vendor for compliance, simplifying your obligations.
Sovos is your ideal tax compliance partner. Let us handle your e-invoicing so you can focus on what matters: growing your business.
Complete the form below to speak with one of our e-invoicing experts
FAQ
Is e-invoicing mandatory in the Netherlands?
The Netherlands mandates that invoices to the Dutch central government must be transmitted electronically. It is currently not enforced for transactions between private businesses.
In what form should the buyer consent in B2B e-invoicing in The Netherlands?
In B2B e-invoicing, the buyer’s consent is required. It can be tacit, meaning that the buyer can process the e-invoice or pay it.
What is the role of Peppol in The Netherlands?
The Peppol network is used as a framework in the B2G e-invoicing process. In late 2023, the country joined a pilot program organised by the European Commission on the exchange of e-invoices between businesses in The Netherlands and Singapore.
