Expense management

European Compliance: Mileage Rates, VAT and Paperless Processes

2 min read

Dec. 3, 2025

3:40

Managing mileage, VAT, and paperless compliance: Insights from MXP by Mobilexpense and expenseBrain GmbH

In a recent interview, Mobilexpense and expenseBrain GmbH explored the practical aspects of implementing global compliance. Christian Elsässer, Managing Director at expenseBrain GmbH, talked with Andreea Susanu, Team Lead Product Compliance at MXP by Mobilexpense, about key approaches, challenges, and developments in global expense management.

Are mileage reimbursements automatically taxed or flagged when exceeding local tax-free limits?

employee using expense automation

Rules are designed to automatically flag or tax mileage reimbursements that exceed local tax-free limits. Employees are alerted when they surpass a limit, or the system calculates the taxable amount directly — ensuring compliance with local tax regulations and preventing unintended tax liabilities.

What documentation is required for a compliant mileage claim?

A compliant mileage claim requires documentation of the travel date, purpose, start and end locations, distance travelled (supported by reliable sources), vehicle details, claimant information, and any relevant supporting evidence such as receipts or calendar entries.

In MXP by Mobilexpense, mileage rates are automatically imported from official regulatory sources through system integrations or scheduled data feeds. This ensures that the platform consistently reflects the most current and compliant reimbursement values without manual updates.

Could you mention a few countries where calculating mileage tends to be more complicated?

Hungary:
Mileage reimbursement consists of two components — a fixed allowance of HUF 15 /km to cover general costs, and a variable fuel allowance based on current fuel prices and vehicle consumption. The total reimbursement is the sum of both multiplied by the kilometers traveled.

Finland:
Standard tax-exempt mileage rates apply, with additional allowances for passengers or trailers. There are also specific rules for snowmobiles, quadbikes, and even workplace canteen travel.

United Kingdom:
HMRC sets quarterly advisory fuel rates for company cars and fixed mileage reimbursement rates (AMAP) for private vehicles, covering both fuel and running costs.

Expense compliance simplified e-book cover

How does MXP handle VAT compliance across multiple countries with different rules?

MXP handles VAT by using local tax settings, checking receipts automatically, and applying country-specific rates and rules to ensure VAT is correctly calculated, recorded, and claimed.

Has MXP worked with third-party providers for VAT recovery?

MXP supports seamless integration with VAT recovery partners such as VAT IT and TaxBack. Expense data and documents are automatically uploaded for validation and submission, ensuring maximum recovery of eligible VAT while reducing compliance risks.

What steps should companies take before going paperless under national law?

Before going paperless and destroying paper invoices, companies must ensure compliance with national regulations. This includes understanding legal retention requirements, implementing secure certified storage systems, digitising and validating documents properly, maintaining backups, updating policies, and documenting the process for audits.

Example – Spain:
Before destroying paper invoices, companies must comply with certification requirements for their electronic document management systems to ensure authenticity, integrity, and legibility. Invoices must be digitised accurately, stored securely for the required six-year period, and the entire process documented for audit purposes.