Business Expense Compliance in the Netherlands
Stay up to date with rules and regulations on digital expense management in The Netherlands.
Last updated in January 2024.
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Rules and Regulations in the Netherlands
Discover guidelines on VAT rates, proof of payment, mileage allowance, working-from-home registration, CO2 registration & WKR registration in the Netherlands.
Paperless Proof of Payment
According to the Dutch government, companies in the Netherlands are allowed to scan and store transactional documents, such as receipts and invoices, in digital formats.
This is permitted as long as the digital versions are a true and accurate representation of the originals and are kept in a format that is accessible and readable for the duration of the retention period.
In terms of legal requirements, companies must retain all digital receipts for a statutory retention period of 7 years, with an exception for invoices related to immovable property, which must be stored for a total of 10 years.
Digital Proof of Payment with Klippa SpendControl
Klippa SpendControl allows employees to take pictures of the receipts and invoices or upload e-documents via email, web or mobile app.
Our user-friendly software extracts relevant document fields with 99% accuracy using Optical Character Recognition and automatically uploads data to your system.
Once submitted, authorized personnel can immediately review and approve transactions. The processed and approved data can then be booked to your accounting or ERP system using Klippa’s 20+ direct integration options.
Klippa stores all archived data for a minimum of 10 years. That way, your transactional documents are always accessible for audits and tax authorities.
VAT Rates
The Dutch government applies VAT rates based on the European Union’s VAT Directive. There are three VAT tariffs relevant to business expense management:
Automated VAT Rate Extraction with Klippa SpendControl
Klippa SpendControl automatically recognizes and extracts Dutch VAT rates from all document types and uploads them to your system.
Additionally, our solution allows users to add relevant VAT rates based on company needs. Once extracted, users can book the data into their preferred accounting or ERP system.
Mileage Allowance
According to the Dutch regulations, an organization is obliged to cover employee travel expenses if the condition is stated in the collective labor agreement (CAO), employment contracts or company regulations.
Travel allowance (reiskostenvergoeding) for the commute or business trip can be paid tax-free when employees travel on foot, by bicycle, private car or public transport. In 2024, companies may reimburse employees €0.23 per kilometer tax-free.
Custom mileage allowance: Companies are free to reimburse a higher amount per kilometer. However, anything above the rate is regarded as salary by the Tax Administration and will be subject to standard taxation rules.
Public transportation: From 1 January 2024, employers can also reimburse the cost of a public transport card (an ‘ov-kaart’) tax-free. The only condition is that an employee uses the public transport card for business purposes
Employees may reclaim their travel expenses up to 5 years after the travel date. They must provide proof of their travel expenses and/or kilometers traveled.
Automated Mileage Tracking with Klippa SpendControl
Klippa SpendControl allows users to easily track and reimburse mileage expenses with the Google Maps integration.
Employees simply pick the starting and ending points of the trip, while our solution calculates distance based on the fastest route and applies a set rate.
After an expense claim is submitted, SpendControl can apply custom compensation rules, such as allowances per kilometer, based on specific users, administration, or category, and then route the data for approval to the authorized personnel.
Klippa stores all data for a minimum of 10 years, ensuring that companies can access mileage records to easily and accurately reimburse employees when necessary.
Working From Home Registration
The Dutch government encourages hybrid working due to advantages like less travel time and costs. Whether employees work from home or choose hybrid working, both options involve multiple rules and obligations.
Employees who work from home incur various costs, like heating, water, electricity, tea, coffee, and toilet paper, among the few. Employers can reimburse these costs tax-free with a working-from-home-allowance (thuiswerkvergoeding) of € 2,35 per day in 2024. The following allowance is indexed annually.
Employers may not give the working-from-home-allowance and the travel allowance on the same day but make fixed agreements about the number of days the employee works from home.
Working-From-Home Registration with Klippa SpendControl
Klippa SpendControl enables employees to submit and categorize their expense claims using custom categories, such as the working location.
This feature provides employers with a clear overview and control over these claims, allowing them to easily verify the legitimacy of each business expense.
Moreover, it facilitates oversight to ensure that the working-from-home allowance and travel allowance are not claimed simultaneously, in line with regulatory requirements.
CO2 Emission Registration
Starting from the 1st of July 2024, all employers in The Netherlands must register and report the CO2 emissions from all business trips following “Regeling Persoonsgebonden Werkmobiliteit” with an aim to limit carbon dioxide emissions from work-related personal mobility.
Companies that employ over 100 workers with an employment contract or public-law appointment of 20 or more hours will have to provide the following information:
As of the 1st of July 2024, employers will be required to keep and report data on employees’ business travel and commutes between home and work.
Automated CO2 Registration with Klippa SpendControl
Klippa SpendControl allows users to register all their mobility in one platform. Employees can enter kilometers manually or use our Google Maps integration to automatically calculate distance based on the fastest route between starting and ending points.
Users can log:
Once logged in, the accumulated kilometers can be swiftly exported and imported into the government portal.
SpendControl allows companies to easily combine mileage tracking with CO2 emission registration, removing the additional hassle of expense management in 2024.
WKR Registration
In the Netherlands, companies can allocate a percentage of their total fiscal wage bill (the total amount of wages subject to payroll taxes) to tax-free allowances, benefits, and provisions for their employees with the Werkkostenregeling (WKR) or Work-Related Costs Scheme.
Under the WKR scheme, businesses do not have to pay wage tax on the amount within the discretionary margin (vrije ruimte).
If the total cost of allowances and benefits exceeds the scope, the employer must pay a final levy of 80% on the excess amount.
Automated WKR Registration with Klippa SpendControl
Klippa SpendControl enables users to submit and categorize claims for business-related expenses eligible under the WKR.
Employees can add descriptions and categories to their expense claims, while authorized personnel can assess whether these expenses qualify under the allowance category, strengthening compliance with the Work-Related Costs Scheme.
Our expense dashboard, featuring custom metrics, offers effective administration and enables employers to closely monitor whether the total cost of allowances and benefits reaches the limit.
This helps prevent companies from incurring additional expenses on amounts exceeding the discretionary margin.
Read About Compliance in Other Countries
Discover how to comply with national regulations on per diems, mileage allowance, VAT rates, proof of payment and more.
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Employees can now submit their claims directly via the app. Managers approve them, and finance ensures proper receipt allocation.
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