An invoice is an overview in a document listing services or products delivered to the customer and the amount to be paid. An entrepreneur can send an invoice by mail or digitally. For example, directly from a software program or by email, where the preparation and sending of invoices is part of accounts receivable management. There are a number of mandatory details that must be included on the invoice, and there is a practical tool to ensure payment is made as quickly as possible.
What is mandatory on an invoice?
In the Netherlands, an invoice for VAT administration must meet specific requirements. For instance, the legal name or trade name of both the issuer and the recipient must be included. The addresses of both parties are also a mandatory part of the invoice, as well as the issuer’s own VAT identification number and the Chamber of Commerce number. The date of issuance of the invoice is mandatory, as is a sequential invoice number. An invoice number may only be used once.
- Name of both parties (legal name or trade name)
- Full address
- VAT identification number
- Chamber of Commerce number
- Sequential invoice number
- Invoice specification requirements
There are additional mandatory components on an invoice. For example, it is necessary to specify the goods or services provided. This can be done by providing a description and indicating the quantities in units or hours. The date on which the goods or services were delivered is also included in the overview, as well as the amount excluding VAT. The applicable VAT rate must also be mentioned, as well as the VAT amount.
- Description of goods or services
- Quantities in units or hours
- Amount excluding VAT
- Date of delivery
- Applied VAT rate
- VAT amount
Get invoices paid faster with Payt
When sending an invoice, it is not always the case that payment is received immediately or on time. Therefore, it is important for entrepreneurs to maintain strict accounts receivable management. It benefits the working capital and liquidity of the company to get outstanding invoices paid as quickly as possible. By using accounts receivable software from Payt, you can get invoices paid faster. The process provides a fixed workflow with automatic sequencing. This optimizes the payment behavior of debtors.
