Expense Reimbursement Policy in the Netherlands

Modified on: Mon, 15 Sep, 2025 at 9:48 PM

TABLE OF CONTENTS

Travel & Mileage
Invoicing & Documentation
Reimbursement & Taxability
Client Entertainment & Gifts
Health & Wellness Expenses
VAT Considerations
Submission & Compliance Guidelines

At Horizons, 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 Horizonte Recursos Humanos MZ, SU, LDA whenever possible
Proof of Payment: If the invoice is in Horizons’ 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 Horizons does not currently apply)

Health & Wellness Expenses

Not reimbursable tax-free
Can only be processed through payroll under the WKR scheme, which Horizons does not currently apply

VAT Considerations

Scenario	VAT Reclaimable?
Invoice in Horizons’ 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
Horizons does not apply the WKR scheme, so additional tax-free benefits under that scheme are not available

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Netherlands