At Remote People, we aim to ensure that all expense reimbursements in the Netherlands are handled transparently, efficiently, and in full compliance with local tax regulations. This guide outlines the rules, documentation requirements, and tax implications for reimbursable expenses.
Travel & Mileage
Mileage Reimbursement: €0.23 per km (tax-free)
Parking & Tolls:
Included in mileage rate if mileage is claimed
Can be reimbursed separately (tax-free) only if mileage is not claimed, and receipts are submitted
Business Travel Restrictions: No additional restrictions beyond standard documentation
Transport Modes: expenses must have a clear business purpose and be supported by receipts (e.g., air, bus, train, tram, taxi, rental cars)
Invoicing & Documentation
Invoice Addressing: Invoices should be addressed to Remote People Global Technology Europe B.V. whenever possible
Proof of Payment: If the invoice is in Remote People’ name but paid by the employee, proof of payment must be submitted
Invoice Threshold: There is no threshold—receipts or invoices are always required
Business Purpose: All expenses must have a clear and demonstrable business purpose
Reimbursement & Taxability
Tax-Free Reimbursable Expenses (with proper documentation)
Business travel (e.g., train, bus, taxi, flights)
Mileage allowance (€0.23/km, excluding parking/tolls)
Parking and tolls (only if mileage is not claimed)
Business-related accommodation (e.g., hotel stays)
Business-related communication (e.g., phone/internet for work)
Per Diems
Not permitted in the Netherlands
Client Entertainment & Gifts
Client Entertainment: Tax-free only if there is a direct business purpose (e.g., client dinner with receipt). Purely social/internal events are taxable
Client Gifts: Tax-free if business-related and under €227/year per client. VAT reclaim depends on value and invoice details
Team Gatherings: Considered taxable benefits unless covered under the WKR scheme (which Remote People does not currently apply)
Health & Wellness Expenses
Not reimbursable tax-free
Can only be processed through payroll under the WKR scheme, which Remote People does not currently apply
VAT Considerations
Scenario | VAT Reclaimable? |
Invoice in Remote People’ name with VAT | ✅ Yes, usually reclaimable |
Invoice in employee’s name | ❌ No, VAT cannot be reclaimed |
Meals/Entertainment | ❌ VAT recovery is restricted or not permitted |
Important: For VAT to be reclaimed, expenses must be processed as incoming invoices in Xero. Ensure processors are informed to avoid duplicate entries.
Submission & Compliance Guidelines
All expenses must be supported by valid receipts/invoices
A clear business purpose must be documented
Per diems are not allowed
Tax-free reimbursements are limited to categories explicitly permitted by law
Expenses not meeting these criteria must be processed through payroll and are subject to wage tax and premiums
Remote People does not apply the WKR scheme, so additional tax-free benefits under that scheme are not available