As a Dutch company, your time-tracking software shouldn't just track hours — it must also comply with Dutch and European laws and regulations. From the Working Hours Act to VAT requirements, and from GDPR to e-invoicing standards: the requirements are numerous and the consequences of non-compliance are serious.
In this article, you will learn which Dutch billing and tax requirements your software must meet and what you need to look out for.
Key insights
- The Working Hours Act requires employers to record working hours and rest periods.The Dutch Labour Inspectorate can impose fines of up to €8,700 per violation.
- An invoice must meet legal requirements for VAT deduction.Incorrect invoices lead to tax assessments.
- E-invoicing via Peppol will be mandatory for B2B in Belgium starting January 1, 2026.The Netherlands is expected to follow from 2030.
- Time-tracking data is considered personal data under the GDPR.Data minimization and adequate security are mandatory.
- Integration with Dutch accounting software determines whether your tool fits into your administration.
- Foreign tools often lack connections to Exact Online, Twinfield, AFAS, or Yuki.
The Working Hours Act: registration obligation for employers
The DutchWorking Hours Actrequires employers to record employees' working hours and rest periods. Specifically, you must record:
- Start and end timesof every working day
- Break duration
- Overtime, leave, and sick hours
The registration must contain the actual working hours — not the scheduled hours.
Which system is permitted?
The law does not prescribe which system you must use. In theory, a spreadsheet is allowed, but the system must be objective, reliable, and accessible. Data must be kept for at least 52 weeks and be available to the Inspectorate SZW upon request.
In 2019, the European Court of Justice confirmed that employers can be required to record all hours worked using a reliable and accessible time-tracking system. The Netherlands has not yet fully incorporated this ruling into national law, but the trend is clear: the obligation to register is becoming stricter.
📚 Read hereeverything about the EU Working Time Directive and compliance.
Sanctions
In the event of violations, the Inspectorate SZW can impose fines:
- Per violation: up to €8,700
- For repeated violations: up to €87,000
- Extended registration obligation: in construction, hospitality, transport, and security
What can you do now?
- Check whether your current registration records actual working hours (not just scheduled hours)
- Ensure that data is kept for at least two years
- Make data exportable for a potential inspection
VAT and invoicing: legal requirements for your invoice
An invoice in the Netherlands must meet specific legal requirements to qualify for VAT deduction. These are the mandatory elements:
- Invoice number(sequential)
- Issue date
- Contact detailsof supplier and customer
- VAT identification numbers
- Descriptionof the service provided
- VAT rate and VAT amount
- Total amount
When billing for hours, the invoice must clearly state which hours are involved, at what rate, and for which project. This is where the link between time tracking and invoicing becomes crucial. Many foreign tools do not sufficiently account for these requirements—which is why solutions tailored to Dutch labor and invoicing practices are essential.
Why is this relevant for consultancy and IT?
Consultancy and IT firms work with varying rates per employee, per project, and sometimes per client. Manually entering the correct rates on the correct invoice lines is prone to error. Software that automatically converts approved hours into invoice lines at the correct rate eliminates this source of error.
In the case of secondment and temporary staffing, the hirer's remuneration also plays a role. FromJuly 1, 2026equal pay is legally mandated. This means that rate structures must accurately align with the employment conditions of the hirer.
📚 Read hereeverything about the HR changes in 2026 and 2027.
E-invoicing: now and in the future
As of January 1, 2026, e-invoicing is mandatory for B2B transactions in Belgium via the Peppol network. PDF invoices sent by email will no longer suffice.
In the Netherlands, e-invoicing currently only applies to B2G transactions (invoicing the government). However, the European ViDA (VAT in the Digital Age) directive mandates e-invoicing for all B2B transactions, starting with cross-border transactions from 2030.
The message is clear: e-invoicing is becoming the standard.
Please note: Dutch companies invoicing Belgian clients must already be able to send Peppol invoices. Otherwise, invoices risk being delayed or rejected.
📚 Read hereeverything about e-invoicing, UBL invoices, and Peppol.
What can you do now?
- Check if your software can send e-invoices via Peppol
- Check if your software supports the UBL format
- Inventory how many of your customers are based in Belgium
GDPR and data protection
Time tracking data is considered personal data under the GDPR. This means:
- Right of access:employees may view their own data and request corrections
- Data minimization:you may not collect more data than is necessary
- Adequate security:data must be protected against unauthorized access
GPS tracking
GPS tracking is a sensitive topic. It is only permitted if:
- It is necessary for the job (drivers, field staff)
- Employees have been informed in advance
- Private trips are not recorded
Please note: in practice, GPS functionality is increasingly being offered in time tracking tools. As an employer, ensure you respect GDPR frameworks, even if the tool makes it technically possible.
Dutch accounting integrations
A point often missed by foreign tools: integration with Dutch accounting and payroll software. The most commonly used packages in the Netherlands:
- Exact Online
- Twinfield
- AFAS
- Yuki
- SnelStart
- Visma Nmbrs
A good integration means: importing clients and projects from your accounting software, automatically exporting invoices as sales entries, and synchronizing payroll data.
In short: without these integrations, you are forced to retype data manually — exactly the source of error you want to avoid.
TimeChimp supports Dutch invoicing and tax requirements
We see that companies choosing a tool specifically built for the Dutch market spend less time on compliance and make fewer errors in their invoicing.
- Working Hours Act: record actual working hours, store data, and export for inspection
- VAT-compliant invoices: automatically generated with all legally required elements
- E-invoicing via Peppol: send e-invoices directly from TimeChimp
- UBL invoices: generate UBL as an attachment with every invoice
- GDPR-compliant: data stored within the EU, enterprise-grade security (Visma), two-factor authentication
- All Dutch integrations: Exact Online, Twinfield, AFAS, Yuki, SnelStart, and Visma Nmbrs
💡View all TimeChimp integrations here.
Conclusion
Dutch invoicing and tax requirements place specific demands on your time-tracking software. Regulations will only become stricter in the coming years — from the tightening of registration obligations to the rise of mandatory e-invoicing.
The most important deadlines:
- January 1, 2026: e-invoicing mandatory for B2B in Belgium
- July 1, 2026: equal pay for temporary agency workers legally enshrined
- From 2030 (expected): e-invoicing for B2B in the Netherlands
✔️ Choose a tool that complies with the Working Hours Act
✔️ Check that your invoices are VAT-compliant
✔️ Prepare for mandatory e-invoicing via Peppol
✔️ Ensure GDPR compliance in your time tracking
✔️ Choose a tool with proven Dutch accounting integrations
👉Looking for Dutch time tracking software that meets local compliance requirements? Try TimeChimp free for 14 days.
FAQs
An invoice must include a sequential invoice number, the date of issue, the name and address details of both the supplier and the customer, VAT identification numbers, a description of the services provided, the VAT rate and amount, and the total amount. For hourly billing, it must clearly state which hours are being charged, the applicable rate, and the project to which they relate.
In the Netherlands, e-invoicing is currently only mandatory for B2G transactions (invoicing the government). However, if you have Belgian clients, you will be required to invoice via Peppol starting January 1, 2026. The European ViDA directive mandates e-invoicing for all B2B transactions, starting with cross-border transactions from 2030.
E-invoicing via Peppol is a European standard that allows invoices to be processed automatically in your customer's accounting system. In Belgium, this will be mandatory for all B2B transactions starting January 1, 2026. In the Netherlands, it currently only applies to B2G, but it is expected that a B2B mandate will follow around 2030 via the ViDA directive.
