Netherlands Confirms Mandatory B2B E-Invoicing for July 2030 and Domestic VAT Reporting for 2031

The Netherlands plans mandatory B2B e-invoicing from July 1, 2030, with digital reporting for cross-border transactions from the same date and domestic reporting from July 1, 2031. KOR businesses with turnover up to €20,000 remain exempt from domestic e-invoicing and reporting.

The Dutch government has confirmed its intention to introduce mandatory B2B electronic invoicing and digital VAT reporting, marking a major step in the digitalization of VAT compliance in the Netherlands.

Under the current plan, electronic invoicing will become mandatory for relevant business-to-business transactions from July 1, 2030. Digital transaction-level reporting for cross-border B2B transactions covered by the EU rules will begin on the same date, while reporting of domestic B2B transactions to the Dutch Tax and Customs Administration will follow from July 1, 2031.

The reform is linked to the European Union's VAT in the Digital Age (ViDA) package and is intended to standardize VAT reporting, support greater automation and strengthen tax controls.

However, the Dutch rules are not yet final legislation. A draft law will undergo further development and consultation before being submitted to Parliament.

The starting point for the Dutch reform is Council Directive (EU) 2025/516, which introduces major changes to electronic invoicing and VAT reporting throughout the EU.

From July 2030, affected intra-EU B2B transactions will be subject to harmonized digital reporting requirements. Instead of relying on different national reporting systems, information will increasingly be transmitted electronically on a transaction-by-transaction basis.

The EU considers structured electronic invoices essential to this process because invoice data can be automatically processed and subsequently used for digital VAT reporting. The Directive also establishes electronic invoicing as the default framework for transactions covered by the new reporting requirements.

For cross-border transactions subject to the ViDA requirements, invoice issuance will also become faster: the Directive generally requires the invoice to be issued no later than 10 days after the chargeable event.

EU Member States can also introduce transaction-level digital reporting for domestic B2B transactions. The Dutch Cabinet has decided to use this possibility rather than limiting the reform to the EU-mandated cross-border framework.

According to the government's plan, domestic B2B e-invoicing will become mandatory from July 1, 2030.

Digital reporting of domestic transactions will start one year later, on July 1, 2031. The phased implementation means businesses will first need to adapt their invoicing processes and then prepare for the transmission of invoice-related information to the Tax and Customs Administration.

The government argues that applying e-invoicing more broadly should avoid having businesses maintain fundamentally different invoicing processes for Dutch and intra-EU B2B transactions. It also expects greater automation to reduce manual administration and make VAT compliance easier over time.

For the Tax and Customs Administration, more structured transaction information should allow supervision and fraud detection to become more targeted and efficient.

Small businesses under KOR will be exempt domestically

An important exception applies to businesses participating in the Dutch Kleineondernemersregeling (KOR).

The Dutch government has stated that KOR businesses will remain exempt from the planned domestic e-invoicing and digital reporting requirements after July 2030.

Under current KOR rules, qualifying businesses established in the Netherlands can participate where their annual turnover does not exceed €20,000.

This does not create a general exemption for all micro-enterprises. Businesses that do not participate in the KOR should therefore prepare on the assumption that the domestic B2B requirements may apply to them regardless of their relatively small size.

Cross-border transactions must also be assessed separately, as EU-level ViDA obligations can still apply depending on the type of transaction.

The reform is more significant than simply replacing paper invoices with PDFs.

Under ViDA, an electronic invoice is based on a structured electronic format capable of automated processing. This allows invoice data to flow directly between accounting, ERP and tax-reporting systems without having to be manually re-entered.

The European framework requires Member States' digital reporting systems to support data from invoices complying with the European electronic invoicing standard. Member States may allow additional formats, provided they remain interoperable with that European standard.

For businesses, this means preparations should focus not only on whether invoices can be sent electronically, but whether accounting and invoicing systems can generate, receive and process structured invoice data.

The Dutch government recognizes that transaction-level reporting will provide the Tax and Customs Administration with significantly more detailed commercial information.

Data security has therefore been identified as a strict requirement for the future system.

According to the Cabinet, access will be controlled through authorization and role-based access mechanisms. Tax Administration employees should only be able to access information necessary for their specific tasks under a “need to know” principle.

Access and use of the data will also be logged, including who accessed information, when it was accessed and for what purpose.

The Cabinet currently intends to apply a maximum 10-year retention period for reported information.

Several important implementation questions remain open.

The government will continue researching how secure and reliable data exchange should operate and how the system can minimize administrative burdens for businesses. The final technical infrastructure for transmitting invoices and reporting data is therefore still part of the implementation work.

The draft legislation is expected to enter public internet consultation in autumn 2026. The Cabinet then intends to submit the bill to the House of Representatives before summer 2027.

What should businesses do?

Businesses therefore have a clear target date but should continue monitoring the legislative process because detailed technical specifications, transmission mechanisms and compliance procedures may still change.

For retailers, the reform is particularly relevant where stores, webshops or other sales channels conduct B2B transactions requiring an invoice.

Retailers should identify whether B2B invoices originate directly from the POS, an ERP system, e-commerce platform or central accounting solution. Those systems may eventually need to generate structured e-invoices and support the data required for transaction-level reporting.

Retail groups operating in several EU countries should also consider the Dutch development as part of their wider ViDA implementation rather than as an isolated national project. Harmonizing invoice data, customer VAT identification, tax codes and ERP integrations across countries could reduce the need for country-specific solutions later.

Here you can check the official letter regarding the implementation of VIDA. Source

Ljubica Blagojević, Junior Legal Research Specialist at Fiscal Solutions

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