Creating an invoice as a sole trader: explanation and example

Sample invoice for a sole trader

In this fictitious example, a freelancer sets up presentation templates for a Dutch corporate client. VAT of 21% applies to this work. The amounts and dates have been filled in; please replace the fields between square brackets with the correct company details. The calculation is: 8 85 = 680; 680 21% = 142.80 VAT. Only use the example with the VAT rate or scheme that applies to your activities.

What must be on an invoice?

For a standard Dutch VAT invoice, you include the following details:

• The full names and registered addresses of you and your customer. A PO Box alone is not sufficient.
• Your VAT identification number and, if you are registered, your Chamber of Commerce number.
• The invoice date and a unique, sequential invoice number.
• What you have delivered and how much: for example hours, quantities or the scope of a project.
• The delivery date or the date of the advance payment.
• The amount excluding VAT, the unit price where applicable, the VAT rate and the VAT amount. Separate amounts with different rates.

This follows from the invoice requirements from the Tax and Customs Administration. Only use your trading name if it is registered with the Chamber of Commerce alongside the address and town.

Which data are especially practical?

Your IBAN, payment term, contact person and an order or project number help the client with the payment. A logo is a design choice. These elements are not in the general list of VAT invoice requirements, but a client may require a purchase order number or timesheet as part of an agreement. Check this in advance. Use your VAT ID for clients. The turnover tax number is intended for contact with the Tax and Customs Administration. Read more about the difference between VAT ID and turnover tax number.

Create your invoice in five steps

1. Have a look at the agreements made. Check the assignment, the rate, any approved additional work and the invoice address. State the legal client who gave the assignment.
2. Use the following invoice number. For example 2026-031, 2026-032 and 2026-033. You may use more than one sequence, as long as numbers are unique and sequential. Therefore, do not start with the same number for every customer.
3. Write relatable invoice lines. ‘September work’ says little. ‘Testing and finalising three presentation templates, 2 hours on 11 September’ makes clear what has been done. A time registration helps with the justification.
4. Check amounts and VAT. Calculate quantities × rate, any agreed discount and the VAT per rate group. Also check the total that the customer must transfer.
5. Send and save the same version. Use the agreed channel, for example a PDF by email. Note the due date and keep the sent invoice with the assignment.

When are you sending the invoice?

Under the standard invoicing obligation, you must send the invoice by the 15th day of the month following the supply at the latest. If, for example, you work in September, the final date for sending is 15 October. Invoicing earlier is, of course, also possible. This date is somewhat different from the payment date that you agree with your client. An invoice is generally mandatory when supplying to other businesses. Exceptions apply for private clients and certain exemptions; a business payment therefore does not always mean the same invoicing obligation. An advance payment may also require an invoice. The Tax and Customs Administration describes the main rules and exceptions for creating invoices.

Invoicing with VAT, without VAT or with reverse-charge VAT

You do not choose the rate based on the fact that you are self-employed. The supply, customer and any arrangement determine the VAT treatment. The general rate is 21%; for certain supplies, 9%, 0% or an exemption applies.

• KOR If you apply the small businesses scheme, you do not charge VAT. If you do send an invoice, state the exemption, for example ‘Exempt from VAT due to the application of the small businesses scheme’. Do not use a VAT line with 0% as if it were a zero-rate supply. See the explanation of the VAT exemption for small businesses.
• Other VAT exemption: check whether your service is actually exempt. Only ‘healthcare’ or ‘education’ as a description is insufficient to determine that.
• Btw shifted: do not calculate VAT and state ‘VAT reverse charged’ plus your customer's VAT identification number if the reverse-charge mechanism applies. Read when you reverse-charge VAT.
• Overseas customer: separately check the place of supply or service and the invoicing requirements. The foreign address on its own does not automatically exempt an invoice.

If in doubt, check the VAT rates and exemptions before you send the invoice.

Word, Excel or an invoicing program?

The choice depends mainly on your working method. With Word or Excel you can draw up an invoice, but you monitor the numbering, calculations, sent version and outstanding amounts yourself. Invoicing software can support those steps. Check the customer details and VAT choice there too: an automatically calculated result is only useful if the input is correct. If you send digitally, your customer must agree to this and the origin, content and readability must be reliable. Keep digital invoices digitally. For ordinary invoices, a seven-year retention period generally applies; for immovable property and certain one-stop-shop schemes, ten years applies. View the retention rules for invoices.

Final check before dispatch

Did you discover an error in the amount after sending? Keep the original invoice and record the correction with a suitable credit note or credit note. Also make the change clear to your client. That way, both sets of records will continue to match.

Frequently Asked Questions