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Expense Compliance Updates for 2022

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Global compliance with mobilexpense

Every year, Mobilexpense’s Compliance Team updates the legal (i.e. non-taxable) allowance and mileage rates in the solution for the following year.

Many countries update their rates yearly, whereas some update them on a monthly or quarterly basis and others only do ad-hoc updates. Mobilexpense monitors government sources to ensure that the rates in the solution are always up to date with the latest regulations and guidelines. This allows our customers to rest easy knowing that we ensure the compliance of their expenses and that they don't need to do any additional research to be compliant.

Our Compliance Team have identified updates to allowance and mileage rates for 2022. They have also included updates to the way organisations must process and store tax data. For more details on these changes, keep reading below.

Updates to allowance and mileage rates for 2022

In 2022, the following countries' rates are likely to change. These changes will be reflected in our app.

  • Allowance rates
    • Czech Republic, Denmark, Finland, the Netherlands, Norway, Serbia (updated every February 1st), Singapore, Slovenia, Sweden, USA.
    • In Norway, the total allowance for multi-day trips will not change. However, the breakdown between taxable and non-taxable amounts will. Per 24-hours with overnight hotel accommodation, excluding breakfast:
      • NOK 801 (NOK 617 non-taxable + NOK 184 taxable) – from 01/01/2022
      • NOK 801 (NOK 609 non-taxable + NOK 192 taxable) – from 01/01/2021
    • German authorities have announced that there will be no change to the allowance rules and rates for 2022 compared to 2021.
  • Mileage rates
    • Canada, the Czech Republic, Denmark, Finland, Norway, USA.
    • Finland’s mileage rate for passenger cars will be increasing from 0.44€/km in 2021 to 0.46€/km in 2022.

Mobilexpense actively screens governmental publications and will update the rates in the solution in case of other changes.

Application of updated rates

These updates and others implemented in our expense management solutions apply to customers that follow the legal rates. These changes will not affect customers that apply their own rates, different from the legal ones.

Changes to digitalisation requirements

Recently, more and more countries have moved towards digital reporting and invoicing. Latin America was a precursor, and Europe is now catching up.

Electronic invoicing (B2B) has been mandatory in Italy since January 2019. In other European countries, however, it remains voluntary. More European countries have started using SAF-T reporting over the past few years including Spain, Norway, Poland and Romania (as of 2022). Expense management solutions support this shift towards paperless VAT declarations and digital auditing by simplifying digital data capture and storage.

Digital storage of financial records

Digital storage rules and procedures differ between countries, nevertheless there are common requirements. A business may switch to digital data storage if it can ensure the authenticity of the origin, integrity of invoice data, and legibility.

  • ‘authenticity of the origin’ means the assurance of the identity of the supplier or issuer of the invoice or receipt
  • ‘integrity of content’ means that the invoice/receipt content has not been altered
  • ‘legibility’ of an invoice means that the invoice can easily be read

There are different ways to ensure data authenticity and integrity:

  • an advanced or ‘qualified’ electronic signature
  • Electronic Data Interchange (EDI)
  • business controls which create a reliable audit trail between an invoice and a supply of goods or services

Mobilexpense offers a qualified electronic signature solution and guarantees that business controls are in place to ensure data safety and security.

COVID-19

Many countries including France, Belgium, Germany and the Netherlands made temporary changes to their VAT rates and other rates and allowances following the COVID-19 crisis in 2020. While most of these temporary changes have been rolled back, other updates are taking place.

For example, the Netherlands' commuter allowance, initially set to disappear in April 2021, was prolonged multiple times to December 31st, 2021. In parallel, the government is creating a new allowance starting in 2022 to reflect the reality of home working for many Dutch employees.

The exhaustive list of compliance updates is simply too long to share in its entirety. But rest assured that our team is always monitoring official sources - so that you don't have to - and ensuring that our solutions are up to date with the latest rates and regulations.

Posted on 16 Dec 2021