The NS-Business Card is an easy way to travel with public transport. All of your journeys are billed together on your monthly invoice. The invoice also itemises the VAT amount. Below you can find some information about the VAT- and payroll tax aspects of issuing and using an NS-Business Card.
Request a VAT refund
There are some differences with regard to VAT between travel for business purposes and private or commuting travel.
In principle, you can deduct the VAT from business expenses, such as business travel. Naturally, you need to take your company's VAT position into consideration.
Commuting and private travel
This situation is different for commuting, as the VAT applies to private use. You cannot request a VAT refund for every situation. The same applies to private travel. Transport subscriptions provided to employees are considered to be payment in kind. If the amount of the transportation subscription, including all other employee allowances, does not exceed the amount of € 227 per year, then in principle you can request a refund for the VAT. The average price of a subscription is higher than this, however. This situation is regulated in the VAT Deduction Exemption Decree. For more information, please see the Tax Authority website or consult your fiscal advisor.
Payroll tax aspects
Expense Allowance Scheme (EAS)
As an employer, you must comply with the Expense Allowance Scheme (EAS). The EAS regulates how you deal with the taxation of all compensation and allowances paid to employees. In principle, all comensation and allowances you pay to your employees are considered to be part of their salary. But you can also choose to earmark a specific compensation or allowance as an expense allowance powst. This would make the amount subject to a lump-sum exemption of 1.2% of the total fiscal payroll amount. This is also sometimes referred to as the expense allowance budget or free budget. Everything paid above this 1.2% of payroll amount in the form of compensation or allowances, and which does not fall under an itemised exemption, is taxed at the 80% final tax rate (employer tax). Compensation and allowances that do not fall under an itemised exemption, and which are booked as an expense allowance post, are not included in the free budget.
Itemised exemptions include a number of explicitly specified compensations and allowances, including compensation for business travel costs (including commuting with public transport). In other words, compensation paid to employees who use public transport for business and/or commuting purposes is exempt from taxation, without utilising your free budget. This situation is subject to certain regulations, which you can find at the Tax Authority website.