Creating an invoice as a freelancer: required details and example

You have finished your first job and now an invoice has to go out. It is not a difficult document, but an invoice with something missing can cause trouble. Your client can send it back, your client's VAT deduction can be at risk, and in an audit you still have to fix it.

Below are all the required details you need when creating an invoice as a freelancer, as the Tax Authority asks for them. You will find an example invoice with calculations, a checklist you can copy, and a few pitfalls I often see. We are not making a downloadable file of it: the checklist is simply on this page, so selecting and pasting it into your own document is enough.

Required details on an invoice

This must be on it at the very least if you charge VAT:

1. Your full name and address. As a sole proprietor, you use your own name as it appears at the Chamber of Commerce (KvK). You may add your trade name, but it does not replace your name.
2. Your client's name and address. For a company, the company name with address. For a private individual, first and last name with address.
3. Your VAT identification number. It starts with NL, followed by digits and a B. It is not the same as your old VAT number, which often contained your BSN. You can find it in your Tax Authority details.
4. Your KvK number. Eight digits.
5. The invoice date. The day you create the invoice.
6. A unique invoice number. Sequential, with no gaps and no duplicates.
7. A description of what you delivered. Nature and scope: what you did or sold, and how much (hours, pieces, days).
8. The date of delivery or of the service. Only needed if it differs from the invoice date. If the job ran over a period, state the period.
9. The amount excluding VAT, the VAT rate, the VAT amount and the total. If you have lines with different rates, split them per rate.

Payment term and bank account number are not required for tax purposes. Add them anyway. An invoice without an IBAN only leads to an email from your client, and an invoice without a term leads to discussion about when payment is due.

VAT rate: 21%, 9% or 0%

The standard rate is 21%. For some products and services 9% applies, and 0% for certain situations, for example some deliveries abroad. Which rate fits your work depends on your industry. If you are unsure, check the Tax Authority's VAT information for your type of work or ask your accountant. Guessing here costs more than a quick check.

If you do not charge VAT: three situations

Not every freelance invoice contains a VAT amount. In these cases, what has to be on the invoice changes:

• VAT reverse charge. The VAT is settled by your client, for example for certain business services within the EU. You then clearly state that the VAT is reverse charged, and you also include your client's VAT number. The full story is in our article on creating a reverse charge VAT invoice.
• Small business scheme (KOR). You do not charge VAT, so there is no VAT amount on your invoice either. What you do and do not put on it, you can read in small business scheme invoice: what do you put on it?
• Exempt services. Some professions have a VAT exemption. You then state the reason for the exemption, so your client and the Tax Authority understand why there is no VAT on it.

A common mistake: filling in the line "VAT 0%" without explaining why. To an inspector, that looks like a mistake, even if it is not.

Example of a freelance invoice

Below is a fictional invoice with all the details in a row. Names and numbers are made up.

Note the delivery date. It is in the description, because the work took place earlier than the invoice date. The invoice number starts with the year and then counts up. That is a common way to meet the requirement of a continuous sequence, but you can choose your own system, as long as it is unique and sequential.

Checklist to copy

Paste this list into a note and go through it before you send an invoice:

• My name and address are on it
• The customer's name and address are on it
• My VAT identification number (unless KOR) and KvK number are on it
• Invoice date and unique invoice number are correct
• The description says what, how much and when
• Amount excl. VAT, VAT rate, VAT amount and total are listed separately
• For reverse-charge VAT or an exemption, the correct statement is on it
• Payment term and account number are on it

Deadlines and pitfalls

The invoice has to go out on time. The rule is that you invoice no later than the 15th day of the month after delivery. If you deliver on 20 March, the invoice must be ready by 15 April at the latest. If you wait longer, you are too late for your VAT records and it can get awkward with your tax return.

The mistakes I see most often:

• Gaps in the numbering. You delete a draft and the number is gone. Use a program that locks in numbers.
• Wrong company name or address for the customer. For a b.v., the name must match the Trade Register.
• VAT number and KvK number mixed up. They look nothing alike, but under time pressure it still happens.
• A vague description. “Work in May” is not enough. State what you did and how much.

Is there a mistake in an invoice you already sent? Don't quietly edit it. Create a credit invoice that cancels the old one and send a new one with a new number. This keeps your records consistent.

What to do now

First check that your own details are complete: name, address, KvK number and VAT identification number. Put them in a fixed template, so you don't retype them for every invoice. Then decide on your numbering and stick to it.

If you want the calculations and statements to be correct automatically, you can get started with our free invoice tool. It also supports reverse-charge VAT, KOR, exempt and export, so you don't have to remember the right text yourself. Then read the invoice through one more time, because you remain responsible for what is on it.

Frequently asked questions

Can I make an invoice in Word or Excel?

Yes, an invoice doesn't have to come from special software. What matters is that all required details are correct and that your invoice numbers stay unique and consecutive. In Word or Excel you have to keep track of that yourself, which quickly becomes error-prone with more invoices.

How long do I have to keep invoices?

For most entrepreneurs, a tax retention period of seven years applies. For certain items, such as real estate, it can be longer. Store your invoices digitally in a place where you can still find them later, preferably with a backup.

Do I have to send an invoice to a private individual?

You are required to invoice business customers. For private individuals it depends on the situation. In practice it is wise to always send an invoice, because it is your proof of the sale and your customer may ask for one.

What is the difference between an invoice and a quote?

A quote is a proposal in advance with a price, which your customer can still accept or decline. An invoice comes after delivery and is the official request for payment, with VAT details. A quote doesn't count in your VAT records, an invoice does.