Bookkeeping and invoices in the Netherlands: what a business must keep

A Dutch business must keep records that allow its tax position to be checked. Bookkeeping is therefore not optional even for a one-person business, although you can choose whether to do it yourself or use a bookkeeper/accountant.

What belongs in your administration?

• sales invoices and received invoices;
• bank and cash records;
• contracts, quotations and relevant correspondence;
• tax returns and correspondence with Belastingdienst;
• time records where relevant to tax claims or agreements;
• travel/mileage records where relevant;
• payroll records if you employ people;
• supporting records for deductions, assets and business costs.

Invoices: build a compliant template before the first sale

Your invoice requirements depend on the transaction, but commonly required information includes supplier/customer details, invoice date and unique sequential invoice number, description and date of supply, amounts and applicable VAT information. Special VAT situations can require additional wording.

Retention

Do not delete records after filing a return. Dutch tax rules impose retention periods, with longer rules for some records such as those relating to immovable property. Check the current Belastingdienst retention requirements for your records.

Practical setup

• Create separate folders/accounts for sales, purchases, tax and contracts.
• Reconcile the bank regularly.
• Keep original supporting documents in an acceptable form.
• Reserve money for VAT and income/corporation tax.
• Do not wait until the annual tax return to discover missing invoices.