Mileage reimbursement - Netherlands - additional amount from company

[travelexpexpert]

Hello,

We are trying to figure out if Concur Expense can handle a split of a mileage rate.

Statutory rate is EUR 0.23 per KM but the company reimburses 0.27 per KM. In that case the EUR 0.04 is liable to personal tax.  

The EUR 0.23 needs to be allocated to on GL account and the EUR 0.04 to a separate GL account. 

If you have knowledge or experience with this your help will be highly appreciated. 

Best, Ole

[GrantC · Accepted solution]

Hi @travelexpexpert.

Yes, the Professional edition of Concur Expense can be configured to handle this. You will want to look into something called the Taxability and Deductibility Service. I have included the documentation here. 

If it is active in a site, there is a configuration option called Taxability and Deducibility on the left hand side of the configuration menu. The configuration should be very straight-forward. You essentially configure the desired reimbursement rate in car mileage, then define the threshold for what is taxable in the Taxability configuration tools. Once that is done, you can go to Account Codes and define the GL accounts for the taxable and non-taxable amounts.

Thanks,

[GrantC · Accepted solution]

Hi @travelexpexpert.

Yes, the Professional edition of Concur Expense can be configured to handle this. You will want to look into something called the Taxability and Deductibility Service. I have included the documentation here. 

If it is active in a site, there is a configuration option called Taxability and Deducibility on the left hand side of the configuration menu. The configuration should be very straight-forward. You essentially configure the desired reimbursement rate in car mileage, then define the threshold for what is taxable in the Taxability configuration tools. Once that is done, you can go to Account Codes and define the GL accounts for the taxable and non-taxable amounts.

Thanks,

[travelexpexpert]

@GrantC thanks for this. Odd because I trawlled the the tech. docs. just not the tax section, which I agree would have been evident. 

Now that I have your attention. 

We have another challenge in the same area of Tax, VAT.

Canada's 9 provinses have different VAT rates. We have talked to SAP  Concur Support who reports Concur Expense cannot handle this and the 9 provinses are not available in any list. 

We are now resorting to fixing this ourselves but could it be that you can point us in a better direction?

Alternatively I might put this question op in the forum.

Cheers, Ole

[GrantC]

@travelexpexpert 

Canadian taxes are one of the most challenging and time consuming to configure, but they are configurable with the tools. Because the taxes vary by province, you must configure at least one Tax Authority for each province. The screenshot below is an example.

Along those same lines, Canadian users MUST have the province field populated in their profile, so the system knows which Tax Authority to default to.

The Global Template, which is usually applied to all new Expense entities, should have the foundations in place for the most common Canadian tax configurations.

Thanks,

[travelexpexpert · Accepted solution]

Hello Grant, many thanks for your input. It's been very helpful.