The Dutch Chamber of Commerce (KVK) has mandated that all legal entities must file their annual reports electronically via Standard Business Reporting (SBR) starting from the 2025 financial year. This expansion aims to streamline the filing process, enhance efficiency, and support the ongoing digital transformation within the business community.
Companies can choose between the XBRL and iXBRL formats for electronic filing. When choosing, companies must consider their reporting needs and flexibility requirements. “Classic”-XBRL is a standardized format that mandates conformity to predefined structures, limiting the scope for customization. In contrast, iXBRL offers greater flexibility, allowing companies to tailor their annual accounts to better reflect their unique circumstances and preferences. This discretionary approach can enhance the clarity and relevance of the financial statements, making them more informative for stakeholders. Find more details in this blog post.
Scope and implementation
The electronic filing requirement applies to all legal entities, including those previously exempted. From financial years starting on or after January 1, 2025, these entities must file their annual reports electronically.
The phase-in approach for creating reports includes voluntary guidance that entities can adopt until it becomes mandatory for financial years starting on or after January 1, 2026. During this period, small and medium-sized legal entities opting for the iXBRL format are temporarily exempt from tagging the notes to the financial statements. However, from January 1, 2026, block tagging of the notes, management report, and other information will become mandatory. This block tagging will require less detail compared to current practices, as it will involve tagging sections as a whole rather than individual figures. This phased approach allows entities to gradually adapt to the new requirements, ensuring a smoother transition.
Comparison between SBR and ESMA reporting
The reporting manual of the SBR framework in the Netherlands is based on the ESMA framework for ESEF reporting. The KVK mandate comes with its own taxonomy. The guidance largely aligns with the ESEF guidance, but has a few notable differences:
- Language of labels: SBR requires labels to match the report language (Dutch, English, German, or French), whereas ESMA encourages broader language use.
- Tagging elements of Annex II: SBR specifies the use of a separate iXBRL document for the reporting of certain concepts mentioned in Annex II of the RTS. Concepts are among others the Chamber of Commerce Registration Number, Legal Entity Name and Size.
- Marking up notes and accounting policies: SBR includes management reports and other information with voluntary guidelines, whereas ESMA focuses on notes and accounting policies.
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Lucanet's XBRL Tagger is an invaluable tool for businesses transitioning to electronic filing, ensuring that their reports are accurate, compliant, and efficiently produced.
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