When can you deduct the VAT on a purchase invoice?
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
No valid invoice, no VAT deduction: above € 100 including VAT it must show both names and addresses, your supplier's VAT number, the dates and the VAT amount separately.
- If the invoice is € 100 or less including VAT, a simplified invoice or till receipt suffices and your name need not appear.
- A valid invoice is not enough: you deduct VAT only insofar as you use the purchase for business and have VAT-taxed revenue yourself.
- If an invoice is wrong, ask your supplier for a corrected one straight away; a year later the company has moved or the contact has left.
- Purchase invoices are kept for seven years; data on immovable property for ten.
Plenty is written about your sales invoices, almost nothing about your purchase invoices. Yet that is where money leaks: the VAT you reclaim is only deductible if you hold an invoice meeting the legal requirements. During an audit that is the first thing an inspector checks, and a missing VAT number or an invoice in your private name is enough to strike the deduction. In this article: which details are mandatory, where it goes wrong in practice and what to do with an invoice that is not right.
The mandatory details
An invoice above € 100 must contain a fixed set of details. Miss one and it is formally not a valid invoice for VAT. In practice the tax authorities look at the whole, and a minor flaw on an otherwise demonstrably business purchase rarely leads to correction. But with larger amounts or structurally sloppy records, the deduction simply disappears.
- The supplier's name, address and VAT identification number.
- Your name and address, meaning your business rather than your private name.
- The invoice date and a unique, sequential invoice number.
- The date the goods or services were supplied.
- A clear description and the quantity or scope of what you took.
- The amount excluding VAT, the rate applied and the VAT amount separately.
- With reverse-charged VAT: your VAT number and the words reverse charge.
Where it goes wrong in practice
Four situations produce by far the most discussion. The first is ordering from a webshop on your private account: the invoice then carries your own name without company details. So in every supplier account you use regularly, enter your business details and VAT number and it resolves itself. The second is the unattended fuel receipt without a VAT breakdown; get a fuel card or have the receipt converted to an invoice in the shop.
The third is an invoice from a foreign supplier showing no VAT because it was reverse-charged to you. That invoice is fine, but you must declare the VAT yourself and reclaim it in the same return; forget that and you lose no money but do lose the reconciliation in your records. The fourth is the receipt you lost. For the profit deduction you can still substantiate costs, for VAT you cannot; see losing a receipt.
| Document | VAT deductible? | What to watch |
|---|---|---|
| Invoice in the company name | Yes | All mandatory details present |
| Till receipt up to € 100 | Yes | The VAT amount must be visible |
| Receipt above € 100 without your details | No, have it corrected | Ask for an invoice in your name |
| Bank statement or payment proof | No | Still usable for the profit deduction |
| Invoice with reverse charge | Yes, through your own return | Declare and reclaim in the same return |
| Invoice under the margin scheme | No | It shows no VAT, see [margin scheme](kb:btw-margeregeling-gebruikte-goederen) |
Fixing a faulty invoice
Notice an invoice is wrong and ask the supplier for a correct version. That is not a complicated request: a supplier whose own records are in order sends a new invoice or a credit note with a correct replacement within a day. Do it straight away, because a year later the company has moved, the contact has left or the supplier has gone under, and you are left empty-handed.
If you already reclaimed the VAT and the invoice turns out to be invalid, correct it yourself through a correction return rather than waiting for someone to find it. Reporting it yourself costs you at most tax interest; being found out additionally costs the assumption that your records are sound, and that carries into the rest of an audit.
Business use remains the second condition
A valid invoice is necessary but not sufficient. VAT is only deductible to the extent you use the purchase for business and to the extent you have VAT-taxed revenue yourself. If something is partly private, such as your phone or laptop, you deduct the VAT pro rata. With exempt revenue, for instance in healthcare, the deduction lapses for that share. And under the small business scheme you reclaim no VAT at all.
Some expenses are excluded by law, however tidy the invoice. Food and drink consumed in a hospitality venue is the best-known example: that VAT is never deductible, see dining with a client. Business gifts also have a threshold, see business gifts. Check those two categories separately before posting them.
Frequently asked questions
Can I deduct VAT from an invoice in my private name?
Above € 100 your company name belongs on it. Ask the supplier for a corrected invoice. With a sole trader the difference between you and your business is small and an occasional receipt is often accepted in practice, but do not rely on that structurally.
How long must I keep purchase invoices?
Seven years, like the rest of your records; ten years for data on immovable property. Digital storage is allowed provided the invoice stays unaltered and legible. See retention obligation and storing receipts digitally.
My supplier only sends a PDF. Is that enough?
Yes, an electronic invoice is fully valid as long as the content is correct and you keep it unaltered. A structured file such as UBL is handier for your records but not a condition for deduction. See e-invoicing.
What if I forgot to reclaim VAT on an old invoice?
You can correct it through a supplementary return for the year concerned, up to five years back. For a small amount below the threshold requiring a separate correction, you may include it in your next return. Ask your bookkeeper to substantiate the amount properly.
Sources
- Invoice requirements for VATBelastingdienst · belastingdienst.nl
- Deducting VAT as input taxBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
