e-Invoicing today: mandatory for B2G, optional for B2B
As of today, e-Invoicing in the Netherlands is a mandatory practice for Business-to-Government (B2G) transactions, while it remains optional for Business-to-Business (B2B) interactions. Government entities in the Netherlands have seamlessly integrated with the PEPPOL network for e-Invoicing, and ongoing efforts continue to digitise the Public Procurement sector through an e-orders pilot via PEPPOL.
If you’re an entrepreneur conducting business with government organisations in the Netherlands, compliance with e-Invoicing regulations is crucial.
Understanding e-Invoicing regulations in the Netherlands
e-Invoicing obligations in the Netherlands differ for central and sub-central bodies. While central government suppliers are mandated to send electronic invoices, suppliers of sub-central contracting bodies may be subject to e-Invoicing based on specific contracts. Notably, there is no mandatory e-Invoicing requirement for B2B transactions.
Electronic invoicing was introduced in the Netherlands on January 1st, 2011, with the government initially requiring central agencies only to receive e-Invoices. Suppliers were not obligated to send e-Invoices, leading to a slow adoption rate.
To boost e-Invoicing adoption, the Dutch government transposed the EU e-Invoicing directive 2014/55/EU into Dutch Law, resulting in the National Procurement Act. This act made it compulsory for central government suppliers to send electronic invoices starting from January 1st, 2017.
In 2019, the e-Invoicing obligation was extended to sub-central government agencies, organisations, and other contracting authorities. While Dutch law does not dictate that these entities must receive e-Invoices, many public authorities at the state and municipal levels voluntarily include e-Invoicing requirements in contracts. As a result, an impressive 95% of government entities in the Netherlands have implemented e-Invoicing today.
To further digitise B2G transactions, the Dutch government introduced an e-Ordering pilot via PEPPOL. This innovative approach allows suppliers to swiftly convert e-orders from the government into e-Invoices, ensuring efficient and error-free invoicing and fostering enhanced information exchange between suppliers and government clients.
However, it’s essential to note that there is currently no legislation mandating e-Invoicing for B2B transactions in the Netherlands.
Who needs to comply with e-Invoicing regulations in the Netherlands?
In the Netherlands, compliance with e-Invoicing regulations is primarily relevant for entrepreneurs providing services and issuing invoices to government organisations. The extent of e-Invoicing compliance depends on the nature of the government client:
If the government client is a central government body (such as a ministry), suppliers must send e-Invoices and adhere to relevant e-Invoicing regulations.
For government clients categorised as sub-central bodies (like municipalities, provinces, water boards, etc.) or organisations following public procurement procedures (e.g., schools, museums), e-Invoicing compliance is contingent on the stipulations within the procurement contract. Many contracting bodies explicitly require suppliers to send e-Invoices, thereby obligating them to comply with all relevant e-Invoicing regulations.
Stay ahead of the e-Invoicing revolution
Connect to PEPPOL now
As the Netherlands continues to lead the charge in embracing e-Invoicing, the significance of staying ahead of this transformative trend cannot be overstated. Connecting to PEPPOL through a trusted Access Provider today is not merely an option but a strategic imperative for businesses operating in the Dutch landscape. By doing so, enterprises position themselves at the forefront of the e-Invoicing revolution, ensuring seamless compliance with evolving regulations and harnessing the remarkable efficiency, accuracy, and cost-saving benefits that PEPPOL offers. It's a forward-thinking approach that not only enhances operational agility but also solidifies businesses as pioneers in the ever-evolving world of digital invoicing. Don't wait; take the proactive step to connect to PEPPOL now and embark on a journey toward e-Invoicing excellence in the Netherlands.
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