When you charge value-added tax (VAT) in the Netherlands, your customers expect a valid invoice. If an invoice omits essential tax identifiers, it won't meet legal requirements and your client's finance team – or the Dutch tax authority – could reject it. Including your VAT identification number on invoices is mandatory in the Netherlands; it's one of the fields that determines whether your invoice is legally compliant, financially usable and audit-proof.

Below, we'll walk through when a business's VAT number is required, when the customer's VAT number is required and what happens if you leave either one off an invoice.

What's in this article?

• What is a VAT number?
  
• Is a VAT number required on an invoice in the Netherlands?
  
• Why is a VAT number mandatory on invoices?
  
• When do you need to include a customer's VAT number?
  
• What are the penalties for omitting a VAT number on an invoice?
  
• How do you create a compliant Dutch invoice?
  
• How Stripe Invoicing can help
  

What is a VAT number?

A VAT number is your business's official ID in the tax system. In the Netherlands, it's called a "btw-identificatienummer," or "btw ID," and it's issued when you register for VAT with the Dutch tax authority (Belastingdienst).

The format of a VAT number in the Netherlands looks something like: NL123456789B01. The country code is "NL," the nine digits that follow are random; then there is a "B," and it ends in two more randomly allocated digits.

The VAT number proves your business is registered to charge and remit VAT. It must be included in every VAT-related transaction, including B2B invoicing and cross-border EU sales.

Is a VAT number required on an invoice in the Netherlands?

Yes. If you're registered for VAT in the Netherlands, your VAT number must appear on every invoice you issue. It's a Dutch tax authority (Belastingdienst) and an EU legal requirement. Your VAT number links the transaction to the VAT system and confirms you're authorised to apply tax.

A business's VAT number must be included on invoices whether the sale is B2C or B2B (other businesses use it to reclaim VAT), and for both domestic sales and cross-border sales.

Why is a VAT number mandatory on invoices?

In the Netherlands, the VAT number gives the invoice legal standing. It tells the Belastingdienst who's responsible for the VAT and under what treatment the transaction was taxed. Without it, you risk compliance issues, which can include denied VAT deductions, assessments for back taxes and penalties.

In B2B transactions, the customer often wants to reclaim the VAT they paid. But under Dutch law, input VAT is only deductible if the invoice meets specific criteria, one of which is that it includes the supplier's VAT number. Without that number, the customer won't be able to use the invoice to reclaim the VAT. So your customer could reject the invoice entirely and ask for a corrected version.

If you're selling to VAT-registered businesses in other EU countries, both your VAT number and your customer's are required on the invoice in order to apply the 0% VAT rate under intracommunity supply rules. Without both numbers, the Belastingdienst won't accept the zero rating.

The VAT number makes a transaction traceable for audit purposes. If you're ever reviewed by the Belastingdienst, they'll want to see that each invoice correctly reflects who charged VAT, under what regime and with what supporting registration.

When do you need to include a customer's VAT number?

You don't always need to include the customer's VAT number on an invoice. But certain tax treatments require their VAT number, primarily when you're not charging VAT because liability shifts to them. The customer's VAT number is your proof that the customer qualifies for that treatment.

Here's when it matters.

Intra-EU B2B sales at 0% VAT

If you're selling goods from the Netherlands to a VAT-registered business in another EU country, you can only apply a 0% VAT rate if you list the customer's valid VAT number on the invoice and include a note explaining that the VAT is 0% due to an intracommunity supply. If you omit the VAT number, the Belastingdienst considers the customer unverified and expects you to charge Dutch VAT instead.

If you're selling services, on the other hand, from the Netherlands to a VAT-registered business in another EU country, you can apply the reverse charge mechanism. However, if you don't have a valid VAT number for your customer, you will experience issues when reporting the transaction on the EC Sales List.

Some Dutch B2B sales under reverse charge

In some Dutch industries, such as construction, telecommunications and scrap metal, the reverse charge mechanism also applies domestically. If that is the case, you need to include the Dutch customer's VAT number and add "btw verlegd" to signal that the reverse charge applies. This tells the tax office that you shifted VAT to the customer.

What are the penalties for missing a VAT number on an invoice?

A missing VAT number violates tax law, and Dutch tax enforcement can follow up accordingly.

The Dutch tax authority can treat missing VAT information as noncompliance and enact:

• Fines for administrative violations

• VAT adjustments if you incorrectly applied 0% or reverse charge rules

• Full audits triggered by repeated or systemic invoice errors

Intra-EU sales are especially high-risk here. If you zero-rated an invoice but failed to include the customer's VAT number, the burden falls on you to prove the transaction qualified. If you can't prove it, you'll owe the VAT retroactively.

Many companies won't process an invoice that's not VAT-compliant. A missing number can hold up payment, throw off month's end reporting, or flag the transaction for legal review.

If you catch the omission quickly, issue a corrected invoice. It's ideal to resolve issues before your next VAT return, because once the books are closed, corrections become more difficult and penalties can become more expensive.

How do you create a compliant Dutch invoice?

The Belastingdienst sets clear requirements for what makes an invoice legally valid. If you're registered for VAT, every invoice you issue needs to include specific information to satisfy audit and VAT reclaim standards.

Here's what every invoice needs:

• Supplier details: Your business's name, address and VAT identification number (btw-ID)

• Customer details: Their business's name, address and VAT number if needed (e.g. if the invoice uses the reverse charge mechanism)

• Invoice information: A unique, sequential invoice number, the invoice date and the supply date (if different)

• Line item details: A description of the goods or services, the quantity and unit price, the VAT rate per item (i.e. 21%, 9%, 0%, or exempt) and any discounts if not already reflected in the unit price

• Totals: The total excluding VAT, the total VAT amount and the grand total including VAT

• Special notes: "Btw verlegd" for a reverse charge or a note such as "zero-rated intracommunity supply"

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process – from invoice creation to payment collection. Whether you're managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customise and send professional invoices – no coding required. Stripe automatically tracks invoice status, sends payment reminders and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process or get started today.