Per Diem

In the Netherlands, per diem allowances for business-related travel expenses fall under the work-related costs scheme (“werkkostenregeling” or WKR). Employers can provide tax-free reimbursements for travel costs, meals, accommodation, and other expenses if they meet specific conditions. Some allowances are exempt from tax under targeted exemptions (e.g., lodging and business travel expenses) or can be deducted from an employer’s discretionary margin, which is currently set at 1.92% of taxable salary up to €400,000 and 1.18% for the remainder belastingdienst.nl

In the Netherlands, per diem and business travel expenses are covered under “extraterritorial costs,” which can either be reimbursed based on actual expenses or through the 30% facility.

Key Compliance Points:

1. 30% Facility:
   • Employers can provide a tax-free allowance of up to 30% of an employee’s salary to cover extraterritorial costs, provided specific conditions are met.
   • Employers must choose annually between applying the 30% facility or reimbursing actual expenses.
2. Reimbursable Extraterritorial Costs:
   • Cost of living allowances due to higher costs in the Netherlands.
   • Travel costs for employees and their families to explore the Netherlands before relocation.
   • Visa, residence permit, medical examination, and vaccination costs.
   • Temporary accommodation and first-time housing costs exceeding 18% of wages.
   • International school fees (separately reimbursed).
   • Travel costs to the home country for family visits.
3. Non-Reimbursable Costs:
   • Expat bonuses, secondment allowances, and foreign service premiums.
   • Real estate transaction costs and financial losses from relocation.
   • Compensation for higher Dutch tax rates (tax equalization).

For more details, refer to the official Dutch Tax Administration website: Belastingdienst​ belastingdienst.nl

Mileage

In the Netherlands, the maximum tax-free mileage reimbursement for business travel in 2025 is set at €0.23 per kilometer. Employers may reimburse employees at this rate without it being considered taxable income. However, if an employer provides a higher reimbursement, the excess amount will be subject to taxation as part of the employee’s wages belastingdienst.nl

For additional details and updates, you can visit the official Dutch Tax Authority’s website: Belastingdienst​ belastingdienst.nl.

If an employer provides a company car that is used for private purposes, a taxable benefit must be added to the employee’s wages, generally calculated as 22%-35% of the car’s value, depending on its CO₂ emissions and age belastingdienst.nl

Paperless

In the Netherlands, businesses must comply with digital record-keeping regulations as required by the Dutch Tax Administration (Belastingdienst). Some key requirements include:

1. Mandatory Digital Tax Filing: Businesses operating in the Netherlands are required to file digital tax returns. This can be done through government portals, accounting software, or tax service providers. If there are issues with online portals, businesses must find alternative solutions to ensure timely filing
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2. Retention of Records: Businesses must maintain tax-related digital records for at least seven years, but some cases, such as those under the non-Union VAT scheme, require record retention for up to ten years. The stored data must be available in digital format for inspections upon request by tax authorities
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3. Payroll Records: Employers must maintain payroll records in a format that allows for immediate accessibility by Dutch tax authorities. These records should include employee details, tax reductions applied, and wage statements. Automated payroll systems are permitted as long as they generate complete and accurate wage statements
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For more details, you can visit the Dutch Tax Administration’s official website:
Belastingdienst – Digital Tax Filing
Belastingdienst – VAT Administration
Belastingdienst – Payroll Records

Meals, Benefits & Allowances

In the Netherlands, compliance regulations for meals, benefits, and allowances are governed by payroll tax rules. Employers may provide various forms of compensation, including meals and benefits in kind, which may be subject to taxation unless specific exemptions apply

1. Taxation of Meals & Benefits: Meals provided by employers are generally considered a taxable benefit unless they fall under specific exemptions. The tax authority recognizes allowances, benefits in kind, and provisions as forms of wages, which must be accounted for when calculating payroll taxes.
2. Extraterritorial Costs & Allowances: Certain costs related to expatriate employees, such as relocation expenses, housing, school fees for international education, and travel costs, may be reimbursed tax-free under the 30% ruling. This ruling allows a tax-free reimbursement of up to 30% of the employee’s salary for expenses incurred while working in the Netherlands.
3. Payroll Tax Calculations: Employers must calculate payroll taxes on all forms of employee compensation, including benefits, allowances, and meal provisions. These calculations take into account wage tax, national insurance contributions, and payroll tax allowances.

For more details on tax treatment of benefits and allowances in the Netherlands, refer to the Dutch Tax Administration’s official resources here​

The Netherlands permits certain tax-free benefits for employees, including meal reimbursements, transport allowances, and overnight stay allowances. These allowances must fall within targeted exemptions or the discretionary margin of the WKR scheme. Employers must pay an 80% final levy tax on reimbursements exceeding the discretionary margin. Some benefits, such as meals provided at the workplace, may be subject to partial taxation belastingdienst.nl

Sales tax rates

TThe VAT (sales tax) rates in the Netherlands for 2025 remain as follows:

• 0% VAT: Applied to exports and some international transport services.
• 9% VAT (reduced rate): Covers essential goods and services such as food, books, newspapers, medicines, and agricultural products.
• 21% VAT (standard rate): Applies to most goods and services unless they qualify for an exemption or a lower rate.

For more detailed information on VAT rules and exemptions, you can visit the Dutch Tax Administration’s official website: Belastingdienst – VAT Tariffs​

VAT Refunds for Business Travel:

• Foreign businesses may be eligible for a VAT refund on business-related expenses incurred in the Netherlands.
• The minimum purchase amount to claim a VAT refund is €50, and refunds are typically available for travel-related expenses such as accommodation, transport, and meals​ world.salestaxhandbook.com

VAT Compliance for Businesses:

• Businesses operating in the Netherlands must register for VAT if they warehouse goods in the country or exceed €10,000 in intra-EU sales.
• VAT returns are usually filed quarterly, but businesses may opt for monthly or annual filing based on revenue.
• Late VAT payments may incur penalties starting at €4,920, plus an annual interest rate of 4%​ taxology.co