Electronic Invoicing in the Netherlands: regulations, requirements, and operation

The e-invoice in the Netherlands is a reality (and a very positive one), but it is not yet an essential element in the digitalization of financial processes for all companies. There is still no general obligation for all B2B transactions, but the country has been promoting the exchange of e-invoices in public procurement and promoting open standards such as PEPPOL, which facilitate interoperability between national and international organizations. 

Let’s see how e-invoicing works in the Netherlands, when it is mandatory, the role of PEPPOL, the requirements, and what differences there are between structured e-invoices and PDFs.

Is e-invoicing mandatory in the Netherlands?

Currently, e-invoicing is “only” mandatory in Dutch public procurement. In B2B this obligation does not exist. Nevertheless, many companies already use them voluntarily due to their advantages and the growing adoption of PEPPOL.

Practically speaking, any supplier invoicing Dutch public bodies must be able to send an e-invoice. This must be compatible with the formats accepted by the administration.

Current situation by type of operation

For multinational companies, this means that having software prepared to work with different electronic formats is increasingly important. Especially if they operate with public bodies or large companies from other European countries where e-invoicing is mandatory.

The entry into force of e-invoicing in the Netherlands

Since it is not yet 100% in force, one of the first questions many companies ask is when it will definitively conclude with the entry into force of e-invoicing in the Netherlands. The timeline has been and is as follows:

• 2014: the aforementioned European Directive 2014/55/EU is approved.
• 2017-2018: phase of progressive adaptation by Dutch administrations.
• April 18, 2019: public administrations become obligated to accept e-invoices compliant with the European standard.
• Since then: e-invoicing is the procedure for public procurement (B2G), although it is not yet mandatory between private companies (B2B).

Specifically, the Dutch government promotes interoperability initiatives, aligning with future European developments. Especially with the legislative package ViDA, which seeks to harmonize e-invoicing and the digital exchange of tax data in the European Union over the coming years.

PEPPOL: the e-invoice exchange standard in the Netherlands

Another important aspect of e-invoicing in the Netherlands that we have already mentioned is the role of PEPPOL (Pan-European Public Procurement Online).

This international network for secure exchange of electronic documents allows companies and administrations to send invoices using a common language. Thus, a Spanish company can invoice a service to the Dutch public administration without specific integrations. How?:

• The company generates a structured e-invoice.
• The software adapts it to the standard.
• The invoice is sent via a Access Point certified.
• The recipient automatically receives the document.
• The entire process is recorded and fully traceable.

Thus, PEPPOL eliminates many problems arising from email submission, such as lost documents, manual errors, or duplications. Furthermore, by facilitating interoperability between companies in different European countries, it significantly reduces administrative costs.

What format does e-invoicing use in the Netherlands?

Unlike other countries with their own national format, the Netherlands opts for common European standards such as:

• UBL (Universal Business Language).
• SI-UBL, a Dutch adaptation also based on UBL.
• EN 16931, which defines the semantic content of the digital invoice.
• PEPPOL.

The goal is for any ERP or financial platform to automatically interpret the information without manual data entry.

Example

A Spanish company supplies medical material to a public hospital in Amsterdam. Instead of sending a PDF via email, the following flow is executed:

1. Generates a compatible UBL invoice.
2. Sends it via PEPPOL.
3. The hospital’s ERP automatically imports all data.
4. The invoice initiates the validation and payment flow without manual intervention.

The result is a much faster, more secure, and less error-prone process.

Differences between Structured Electronic Invoice and PDF

However, in both Spain and the Netherlands, some believe that a PDF constitutes an electronic invoice. But, from a legal and technological standpoint, this is not the case, and we reflect this with the differences in this table:

Although a PDF may have fiscal validity, it does not allow for complete automation of financial processes, which is precisely one of the main objectives of accounting digitization.

• For a CFO who manages thousands of invoices per month, this difference translates into hundreds of hours of administrative work saved each year.

What digital retention requirements exist in the Netherlands?

The Belastingdienst (Dutch Tax and Customs Administration) requires fiscal and accounting documents to be retained for 7 years. This includes invoices, accounting ledgers, purchase and sales records, and supporting documentation of operations.

In turn, retention must guarantee:

• Authenticity of origin.
• Integrity of content. 
• Legibility throughout the entire retention period.
• Availability in the event of a potential tax inspection.

Specialized software and solutions like those from easyap facilitate both the retention and immediate location of any document. Therefore, it avoids manual searches and reduces risks of non-compliance.

What advantages does e-invoicing offer to businesses?

In this sense of leveraging advantages, although it is not yet mandatory for all B2B operations, more and more Dutch organizations are accelerating its implementation. Specifically, because it offers general benefits such as:

• Less processing time.
• Elimination of manual tasks.
• Fewer data entry errors.
• Greater traceability.
• Automation of approvals.
• Faster accounting reconciliation.
• Better financial control.
• Lower administrative costs.
• Regulatory compliance.

For international companies, these advantages are even more important as documents from different countries can be managed from a single system.

How to prepare for the evolution of e-invoicing in the Netherlands

Although a general B2B obligation does not currently exist in the Netherlands, everything points to a greater adoption of structured e-invoicing in the coming years. European tax digitization continues to advance. 

Therefore, many companies have already adapted their processes to work with platforms compatible with PEPPOL and European standards. This is the trend in the Netherlands and the rest of Europe.

However, when implementing financial automation software, it is advisable to check that the solution allows for:

• Issuing invoices in different international formats.
• Integrating with PEPPOL.
• Automating invoice reception.
• Electronically archiving all documentation.
• Integrating with the corporate ERP. 
• Easily adapting to future regulatory changes.

In this way, the company complies with current regulations and, at the same time, reduces operational costs and improves the efficiency of the financial department.

After all this, you will understand the importance of having an invoicing solution that works with international networks, automates document management, and complies with the archiving requirements of other countries. And, of course, one that adapts to each legislation and potential future changes. Contact us and discover how we help you digitize your accounts payable cycle and all your e-invoicing.

Frequently asked questions about e-invoicing in the Netherlands

Can a foreign company send e-invoices to Dutch public bodies?

Yes. Provided that it uses a format compatible with accepted standards and can exchange documentation via PEPPOL or the channels accepted by the relevant administration.

Is it mandatory to use PEPPOL in all B2B operations?

No. In B2B, there is no general obligation to use it, although it is becoming increasingly common for large companies to require it from their suppliers for efficiency reasons.

Can the electronic invoice be archived on servers located outside the Netherlands?

Yes, provided that access to the documentation, its integrity, authenticity, and availability are guaranteed throughout the legal retention period.

What happens if a company only sends PDF invoices?

In B2B, it can work if both parties accept it. But, for public procurement, a PDF does not replace a structured electronic invoice when regulations require this format. And in the future, it is very likely that it will not be accepted in B2B either.