A Guide for Reimbursing Travel Expenses in the Netherlands

Certain employee positions will require business-related travel, and employers will typically pay or reimburse those expenses. While that is a fair practice, every country has its own rules on how to reimburse, document, and calculate allowable travel expenses.

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The issue is that some expenses could have a mixed personal/business use, and may be a taxable fringe benefit to the employee.  The Netherlands uses several calculations for permitted reimbursement and imposes limits on tax-free travel expenses.

How are transportation expenses reimbursed to employees in the Netherlands?

The following rules are used for transportation expenses, either for business travel or commuting to work.

Private Transport

An employee that uses their own private transportation for business trips can be reimbursed tax-free based on distance traveled, and in Netherlands that equals EUR .19 per kilometer.  They cannot be reimbursed for personal side trips or usage.

Unlike many countries, Netherlands does allow a tax-free fixed allowance to be paid for employees commuting to work, but it is not mandatory for the employer.  The allowance is based on a formula that uses the number of round-trip kilometers between home and work, multiplied by EUR .19, and then multiplied by 214 working days in the year.  If the employer reimburses more than EUR .19 per kilometer (such as for tolls or parking fees), those are amounts... read more 

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Tim Burgess

Director, Shield GEO Services Ltd