Getting Paid, Invoicing, and VAT on DAFT: A Practical Setup

Last reviewed: January 2026

DAFT is DIY-friendly. The part that makes people spiral is not the treaty or the IND forms. It is the money layer around it: invoices that do not match payments, VAT decisions made on assumptions, and an admin file that cannot explain your business activity without a long story.

This article gives you a clean system you can run in the real world. Not perfection. Not accountant-level detail. A setup that is defensible, repeatable, and easy to maintain. Your goal is to make your administration boring. Boring is compliant. Boring is easy to renew.

If you do only one thing after reading: Create a workflow where every invoice can be matched to (1) a clear description of what was delivered, (2) proof of payment, and (3) the VAT logic you applied. If you cannot do that quickly, you do not have a system yet.

Scope note: Expat Advisory provides planning, education, and coordination. We do not provide legal services and we do not file taxes. This is practical education with links to official sources so you can confirm the rules for your situation.

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The money layer you actually need

Most DAFT entrepreneurs do not get tripped up because they are not working. They get tripped up because their administration does not tell a clean story. IND does not need your business to be huge. They need to see that your business is real and that you can support your claims with documents.

Your minimum viable system must answer three questions on demand, for any period you choose (month, quarter, year):

What did you bill? Invoices that meet the rules and describe what you delivered.

What did you collect? Payment proof that links back to the invoices.

Why is your VAT treatment correct? A consistent VAT logic that matches your client type and where the service is taxed.

One sentence standard: Every invoice should be auditable without calling you. A stranger should be able to open one folder and see the client, the deliverable, the VAT reason, and proof of payment.

If your current setup relies on memory, inbox search, or a bank feed you do not reconcile, fix it now. You are not behind because you missed a form. You are behind because you do not have a system.

VAT basics in plain English

VAT (btw) is a consumption tax. In normal situations, you charge VAT on your sales, and you can deduct VAT you paid on business costs. The VAT return is a reconciliation: VAT collected minus VAT you can deduct, then you pay the difference or receive a refund.

In the Netherlands the most common VAT rates are 21% (standard), 9% (reduced for specific categories), and 0% in certain situations (often cross-border). The Belastingdienst also explicitly notes that with the 0% rate you charge 0% VAT, but you can still deduct VAT on expenses as input tax. Btw-tarieven: welke tarieven zijn er, en wanneer moet u ze toepassen?

Important: “No VAT” is not a single thing. It can mean 0% VAT, exempt, reverse charge, or out of scope. These have different invoice wording and different consequences. If you treat them as the same, you create risk.

0% vs exempt vs reverse charge

Here is the clean mental model. These labels are not interchangeable.

0% VAT: You put 0% on the invoice. You must be able to prove you applied 0% correctly, and the Belastingdienst states you keep the right to deduct VAT on expenses. Btw-tarieven (0% and deduction note) and Aantonen van terechte toepassing 0%-tarief

VAT-exempt: You do not charge VAT, and the Belastingdienst is clear that VAT on costs and purchases linked to exempt supplies is not deductible (with partial exceptions if you have both exempt and taxed turnover). Wat moet u doen als u vrijgestelde goederen of diensten levert?

Reverse charge (btw verlegd): You do not charge VAT because the customer accounts for it. When reverse charge applies, you must put “btw verlegd” on the invoice and include the customer’s VAT ID. Hoe werkt btw verleggen?

Use this question: “What is the reason there is no VAT on this invoice?” If you cannot answer in one sentence and cite a rule or tool result, you are guessing.

Your VAT numbers: btw-id vs omzetbelastingnummer

In the Netherlands you will typically have two numbers that people casually call “VAT numbers,” but they are used differently:

Btw-identificatienummer (btw-id): This is the number you use externally with customers and suppliers. It usually starts with “NL”. This belongs on invoices and client-facing material.

Omzetbelastingnummer: This is used for communication with the Belastingdienst and can appear in tax portal contexts. Do not assume it is the same thing as your btw-id.

The Belastingdienst explains the difference and when to use each number. Btw-id and omzetbelastingnummer

Common mistake: People try to validate the wrong number in VIES, get “invalid,” and think something is broken. Usually they used the omzetbelastingnummer instead of the btw-id. Keep your btw-id easy to find and keep your invoice template consistent.

Invoice requirements with a simple template

If you want to stop overthinking invoices, focus on two goals: meet the requirements, and make every invoice easy to match to payment and delivery. The Dutch Tax Administration lists required invoice elements and also calls out special cases such as advance payments. Business.gov.nl and KVK also summarize the practical invoice fields most businesses include.

Belastingdienst: Invoice requirements · Business.gov.nl: Invoice requirements · KVK: Writing an invoice

Invoice field What to do (practical)
Your legal name and address Use the exact business name and address tied to your KVK registration and admin records. Be consistent across invoices, contracts, and your website.
Your VAT ID (btw-id) Include your btw-id on invoices unless a specific exception applies.
Your KVK number Include your KVK number. It is standard practice and is listed on official “invoice requirements” summaries.
Customer name and address For businesses, match the legal entity details. Do not invoice “John” when the contract is “John LLC.” Fix this at onboarding, not during filing season.
Invoice number Use a consecutive numbering system. Never reuse numbers. Never delete invoices. If you need to fix something, correct it properly (see the corrections section).
Invoice date Use the date you issue the invoice.
Date of supply or service period Include the delivery date or the service period (example: “Services provided: January 1, 2026 to January 31, 2026”). This is a common missing piece.
Description of goods or services Write it so a stranger understands what was delivered. “Consulting” is not enough. “Business planning consult (90 minutes) + written roadmap (PDF)” is better.
VAT rate and VAT amount Show the VAT rate and VAT amount per rate, unless reverse charge applies. VAT reporting is in euros.
Advance payments (if relevant) If you take an advance payment and the payment date differs from the invoice date, document the payment date clearly and keep the payment proof with the invoice file.
Reverse charge statement (if applicable) Include “btw verlegd” and the customer’s VAT ID when you apply reverse charge.
Payment reference and terms Make your life easy: put “Payment reference: [invoice number]” on every invoice and set clear terms (for example, 14 days). It is not legally required, but it prevents admin chaos.

Practical invoice rule: If your invoice does not include the service period, the VAT reason, and a specific description, you are creating future work for yourself and unnecessary stress for renewals.

Invoice examples: NL, EU B2B, non-EU

Do not copy these blindly. Use them as structure. Your VAT treatment depends on what you do, who your customer is, and where the supply is taxed. When in doubt, use official tools and confirm with an accountant.

Example 1: Dutch client (NL), Dutch VAT charged

Invoice #2026-001
Invoice date: 2026-01-30
Service period: 2026-01-15 to 2026-01-30

Supplier: Your Legal Name, Address, NL VAT ID (btw-id), KVK number
Customer: Client Name, Address (Netherlands)

Description: Business planning session (90 minutes) + written action plan (PDF)
Net amount: €1,000.00
VAT 21%: €210.00
Total: €1,210.00

Payment terms: 14 days
Payment reference: 2026-001

Example 2: EU business client (B2B), reverse charge

If you reverse charge VAT, the Belastingdienst states you do not charge VAT, you put “btw verlegd” on the invoice, and you include the customer’s VAT ID. How reverse charge works

Invoice #2026-014
Invoice date: 2026-02-05
Service period: 2026-02-01 to 2026-02-04

Supplier: Your Legal Name, Address, NL VAT ID (btw-id), KVK number
Customer: EU Company Name, Address (EU)
Customer VAT ID: DE123456789

Description: Consulting services (project support and documentation)
Net amount: €2,500.00
VAT: €0.00 (btw verlegd)

Invoice note: "btw verlegd"
Total: €2,500.00

If you do EU B2B work, also check whether you must file an ICP statement for that period. People often do reverse charge correctly on the invoice and then forget ICP.

Example 3: Non-EU business client (for example, USA)

For many services sold to non-EU businesses, the place of taxation may be outside the Netherlands, which can mean you do not charge Dutch VAT. Use the official tools to confirm your situation. Business.gov.nl: VAT on services abroad

Invoice #2026-022
Invoice date: 2026-02-20
Service period: 2026-02-10 to 2026-02-18

Supplier: Your Legal Name, Address, NL VAT ID (btw-id), KVK number
Customer: US Company Name, Address (USA)

Description: Strategy workshop + deliverables (deck + written plan)
Net amount: €3,000.00
VAT: €0.00 (confirm place of taxation with official tool)

Total: €3,000.00

Do not guess: The “right” invoice is the one that matches the correct VAT logic. If you apply a 0% rate or reverse charge, keep the evidence that supports it.

Getting paid: bank hygiene, processors, documentation

Separate your business money from personal money. Not because it is morally superior. Because it makes your documentation defensible. A clean bank trail is one of the easiest ways to prove active business operations.

Here is the setup that works for most DAFT founders:

One primary business account: payments in, business expenses out. Avoid mixed spending.

One invoice reference rule: require clients to use the invoice number as the payment reference. Put it on the invoice. Repeat it in the payment email. This single habit prevents hours of reconciliation later.

Monthly statement exports: save monthly bank statements (PDF export). Even if you use bookkeeping software, keep the original statement file. Tools change. Statements do not.

If you use Stripe, PayPal, or other processors: treat the processor like a separate mini-bank. Your client pays the processor, and you later receive payouts (net of fees). Save payout reports and reconcile them to invoices. Your bank deposit alone does not tell the story.

Weekly routine that keeps you sane: Once per week, reconcile. Every incoming payment points to an invoice. Every invoice is either paid, overdue, or clearly voided by a credit invoice. Ten minutes per week beats ten hours of panic.

Foreign currency: USD payments without chaos

Many DAFT founders earn in USD and spend in EUR. That is normal. What is not normal is trying to reconstruct exchange rates months later because your invoices and your bookkeeping notes do not show how you converted amounts for reporting.

For VAT reporting, amounts must be expressed in euros. The Belastingdienst provides conversion guidance (including when to use the invoice date and when other dates apply) and also allows use of ECB exchange rates in specific cases. Vreemde valuta omrekenen (Belastingdienst)

Business.gov.nl also notes that for certain payments (including crypto examples) you usually take the value on the invoice date and points you back to the Belastingdienst conversion exceptions. Filing your VAT return (Business.gov.nl)

Simple approach that works: Pick one consistent conversion method for your bookkeeping and VAT reporting (for example, invoice-date conversion using a documented source). Document the method, and store the evidence you used with the invoice file. Consistency and traceability matter more than cleverness.

If you invoice in USD, consider recording the EUR equivalent in your bookkeeping notes, even if the invoice itself stays in USD. The goal is to make your VAT and revenue story easy to reconstruct without guesswork.

Reverse charge and VAT ID checks (VIES)

Reverse charge is not something you “choose.” It is a rule you apply when the conditions are met. If you apply it, do the admin correctly every time.

Step 1: Get the customer VAT ID at onboarding, not at invoicing.

Step 2: Validate it and save proof. The Belastingdienst explicitly tells you to save the result. Btw-id controleren (Belastingdienst)

Step 3: Put “btw verlegd” and the customer VAT ID on the invoice. How reverse charge works

VIES link: Use the official European Commission VAT number validation tool. VIES VAT number validation

Keep it simple: Save a screenshot or PDF of the validation result inside the client folder next to the invoice. If you ever need to defend reverse charge, you will already have the evidence.

ICP reporting: when you must do it

If you supply certain goods or services to business customers in other EU countries, you may have to file an ICP statement (opgaaf ICP). This is separate from your normal VAT return.

The Belastingdienst explains what you must include in ICP and when it is required. Opgaaf ICP

The Belastingdienst also notes you generally do not need to file ICP for a period where you delivered nothing, and that you can submit within two months after the period. Opgaaf intracommunautaire prestaties (ICP)

Practical trap: EU B2B work is where people forget ICP. If you reverse charge to EU business clients, add “ICP check” to your quarterly routine.

OSS and EU B2C sales

Most DAFT founders do not need OSS. You start caring about OSS when you sell goods or certain services to EU consumers (B2C) and VAT is due in the consumer’s country. OSS is a system that can simplify reporting and payment in many cases.

Belastingdienst overview: Btw melden via het eenloketsysteem (OSS) and e-commerce context: E-commerce: btw melden via het eenloketsysteem

Recordkeeping can extend beyond the standard Dutch retention period. Business.gov.nl states you must keep records for 10 years if you make use of the Union scheme housed in OSS. Keeping business records (Business.gov.nl)

Rule of thumb: If you primarily sell services B2B, OSS is often irrelevant. If you sell digital products or B2C services across the EU, pause and confirm the rules before you scale.

KOR: when it helps, when it hurts

KOR can sound attractive because it reduces VAT admin. But it is not a free lunch. KOR is a VAT exemption scheme. If you use it, you do not charge VAT and you generally cannot deduct VAT on your business costs. That can be a bad trade if you have meaningful expenses.

Belastingdienst overview: Kleineondernemersregeling (KOR)

KOR often helps when you sell mainly to consumers in the Netherlands and you want a simpler admin. It often hurts when you sell B2B, when you need VAT deductibility on costs, or when you plan to invest early (equipment, software, professional services). Do the math before you choose it.

Also, be clear about the threshold behavior. If you exceed the €20,000 threshold, you must stop using KOR immediately, and the Belastingdienst states the threshold-crossing transaction itself is not exempt. Afmelden KOR

DAFT reality: KOR does not replace the need for a clean administration. You still need invoices, payment proof, and an activity story that holds up.

Filing and paying VAT: deadlines you cannot ignore

VAT returns are not something you do when you feel inspired. Put them on a calendar. Automate reminders. Build a VAT reserve so you are never surprised by a payment due.

Your filing frequency (monthly, quarterly, yearly) is something the Belastingdienst confirms for you. Do not assume you are quarterly just because other people are.

If you file using administration or bookkeeping software, the Belastingdienst warns you should submit from the 24th of the month before the end of the relevant period. Submitting earlier can trigger an error. Uiterste aangifte- en betaaldatums

Practical system: Every time you get paid, treat VAT as not-your-money. Set aside an estimated VAT portion in a separate bucket. Then VAT due dates feel boring instead of stressful.

Fixing mistakes: credit invoices and VAT corrections

Mistakes happen. The correct move is not to quietly edit a PDF and pretend it never existed. Your invoices must remain consecutively numbered and your admin must stay coherent. Fix errors in a way that preserves the audit trail.

Most invoice-level fixes are handled with a credit invoice and a corrected invoice. Keep both. Do not delete. Do not reuse the invoice number. Make the paper trail obvious.

If a mistake affects VAT returns you already filed, you may need to correct your VAT return. The Belastingdienst provides a clear split: corrections up to and including €1,000 can be processed in your next VAT return, while corrections over €1,000 must be corrected via the Suppletie VAT correction form. Btw-aangifte corrigeren

The Belastingdienst also notes that if you discover a VAT error over €1,000, you are expected to correct it as soon as possible and, in any case, within 8 weeks of discovering it. That is not a rule you want to “get around.” It is a rule you design your admin to avoid triggering.

Strong advice: If you are not sure whether a mistake changes VAT due, do not guess. Capture the issue, document what happened, and confirm with an accountant. “I fixed it properly” beats “I hope it does not matter.”

Retention: what to keep and how long

The Belastingdienst states you must keep invoices for 7 years in the original form (paper stays paper, digital stays digital). Invoices related to immovable property must be kept for 10 years. Uw facturen bewaren

Business.gov.nl summarizes the broader record retention rules, including cases where 10 years applies (such as OSS Union scheme). Keeping business records

Practical standard: For each client, keep one folder with the contract or engagement email, invoices, proof of delivery (work product), and proof of payment (bank export or processor payout evidence). If you apply reverse charge, include VAT ID validation proof.

Also: back up your admin. Cloud storage plus a local backup is not overkill. Losing files is not a vibe. It is a problem.

The DAFT-proof admin file

If you want DAFT to feel calm, build a file that can answer “are you operating?” without drama. When your admin is clean, renewals and extensions become predictable.

Here is a standard that works well in practice:

Monthly: invoices issued, payments received, bank statement exported, and a short note on what you delivered that month.

Quarterly: VAT return filed (if applicable), VAT reserve reconciled, ICP filed if required.

Annually: tidy client folders, confirm retention, and produce a one-page summary of revenue and activity you can hand to an accountant or keep for your DAFT documentation pack.

DAFT mindset: IND is not asking for perfect. They are asking for credible. Your file should look like a real business runs it.

If you want a structured workflow and checklists for this, the DAFT DIY Hub is where we keep the guide, tools, and the DIY Companion process.

Sources and official references

lloydnapier
Author: lloydnapier

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