Guide: How to apply for expense reimbursements

You will receive expense reimbursements already during salary payment when you let Eezy process your work-related expenses and receipts. With our additional service, you can deduct all invoiced directly work-related material, supplies, and travel expenses already during salary payment. Your expenses are reimbursed based on purchase receipt or travel expense and you will benefit financially when you pay less taxes and salary-related expenses from your salary.


Basically, the invoice total excluding VAT your client pays will be divided into a salary for the work and expenses. From the expenses, you do not pay taxes or salary-related expenses. We will process and review your reimbursable expenses and ensure that they are paid to you in accordance with the Tax Administration’s instructions.

You save time and effort when you receive your reimbursable expenses right away and you do not have to wait until your tax return, let alone fill them in separately. Only withholding-free travel expenses need to be reported separately, and even of those, you will receive a convenient summary from our online service, if they have been reimbursed through us.

You only pay for processing of reimbursable expenses and receipts when you need it

Processing of expense reimbursements and receipts is our additional paid service. The service fee is 1% + VAT. The price of the additional service will be charged in addition to the normal service fee and will be calculated from your invoicing amount excluding VAT. Please read the conditions for expense reimbursements carefully because we do not want you to pay in vain. The service fee will be charged for the processing of expenses, even if not all your expenses are accepted for reimbursement.

In what situations can you receive expense reimbursements during salary payment?

Your expenses can be reimbursed under the following conditions

  • Expenses are deductible according to the Tax Administration’s instructions, i.e. they are directly related to the work you invoice through us, and they do not involve private use or long-term use.
  • Expense receipts and documents meet the Tax Administration’s requirements.
  • You have provided us with the necessary receipts and supporting documents as well as a breakdown of expenses prior to your salary payment.
  • After reimbursing expenses, a reasonable salary must always remain. This may in some cases limit the consideration of both reimbursable expenses and tax-free travel expenses. Otherwise, there is no personal or work-specific maximum limit on expenses.

Requirements for expense receipts and supporting documents

  • The receipt or document must not be more than 2 months older than the date of salary payment, due to accounting requirements.
  • According to the Tax Administration’s instructions, the receipt or document must not contain any purchases other than those caused by the work.
  • You pay the expenses yourself. For example, your spouse cannot be a payer because then the expense would be included in his or her deductions.
  • If the buyer’s name appears on the receipt or document, it should be your own name or the marketing name you use as Eezy’s light entrepreneur. It cannot be, for example, the name or business ID of your former business.
  • The same receipt or document cannot be used more than once.
  • The receipt or document is always processed as a unit attached to one invoice.
  • Please keep the original receipts and documents until your salary has been paid and those expenses have been reimbursed to you.

Not all purchases can be accepted as expenses

We cannot accept purchases that may involve private use or have longer-term use as expenses. Such expenses include, for example, clothing, telephone, computer, accommodation and rental costs, and tools for long-term use. You will be able to deduct these purchases and expenses in your own personal taxation if the Tax Administration deems them necessary in the exercise of your profession. Also, trainings, courses, and professional literature are not deductible through us.

Why do you have to follow instructions exactly with expenses and receipts?

At Eezy, we follow the Tax Administration’s guidelines and thus ensure that our light entrepreneurs’ matters are taken care of properly. We do not want your expenses to cause you problems in retrospect or, for example, tax penalty.

Please ask in advance if you are wondering about deducting expenses through Eezy. Many expenses that we cannot reimburse may well go through in your personal taxation as income deductions.

Reimbursement of supplies and material expenses

We may reimburse you for supplies and materials in accordance with the Tax Administration’s instructions when supply and material expenses are directly related to the work invoiced. Even if you do not charge your client for supplies or materials, you can still apply for reimbursement from us.

Reimbursement of travel expenses

We may reimburse you for travel expenses as instructed by the Tax Administration, either as tax-exempt or taxable expense reimbursements. The Tax Administration has its own guidelines for light entrepreneur services for the payment of travel expenses. See Tax Administration’s guidelines (only in Finnish): Reimbursement of travel expenses paid by invoicing service companies in prepayment and income tax 

Tax-exempt travel reimbursements

According to the Tax Administration’s instructions, the condition for paying tax-exempt travel reimbursements to a light entrepreneur is that the travel expenses have been invoiced from their client, separated from the work share. You can apply for tax-exempt travel reimbursements up to the amount you have invoiced from your client.

Requirements for reimbursing tax-exempt travel expenses:

  • In addition to travel expenses, you also invoice work and travel expenses are related to that work.
  • You have specified the share of work and the share of travel expenses on separate rows on your sales invoice, example:
    Cleaning 2 h, tot. 50 €
    Travel expenses, total 20 €
  • The time and kilometer limits set by the Tax Administration for tax-exempt travel expenses are exceeded.
  • This is an unusual location for work, i.e. a place where you work temporarily.

Taxable travel expenses

If you are unable to invoice your client for travel expenses, travel expenses will not be tax-exempt income as interpreted by the Tax Administration. In this case, travel expenses can be paid as taxable travel expenses. This means that a withholding tax will not be deducted from the share of travel expense reimbursements during salary payment. However, the reimbursements are taxable income and will appear on your pre-filled tax return as taxable income.

It is advisable to report taxable travel reimbursements annually as income deductions in your personal tax return. If you do not declare taxable travel reimbursements in your tax return, the Tax Administration will treat the withholding-free expenses as earned income, in which case residual tax is expected. If you know in advance you will receive a lot of taxable travel reimbursement during the year, you should raise your own tax percentage already in the beginning of the year.

From the My Profile page on the Extranet, you can print an annual report detailing these travel expenses to make it easier to complete your tax proposal.

If the place of employment is considered your actual place of employment, travel expenses cannot be reimbursed as tax-exempt or taxable reimbursements.

Travel reimbursements in special field

Reimbursement of travel expenses in special fields differs from ordinary business trips in terms of daily allowances. When working in a special field, you are entitled to a daily allowance only if your business trip lasts overnight.

Special fields refer to the construction, civil engineering, or forestry field, which are characterized by the frequent need to change the work location due to the short duration of the work typical of the field.

However, it is not always entirely clear whether you work in a special field or whether your work is mobile work. The difference between the two is interpreted as a person doing mobile work changes their place of work very often, e.g. several times a day – that is, more often than a person working in a special field. General tax guidelines apply to the travel expenses of a mobile worker.

Tax Administration’s Guidelines: Travelling within special sectors of work

If you feel you need guidance and you are not sure if your work is in special field or mobile work, our lawyer Otto Michelsen will assist you. Contact here!

Reimbursement of rental expenses for own premises

Through Eezy, a rental business premise can be deducted as an expense reimbursement if it is invoiced on a daily or hourly basis and is directly related to the assignment you invoice, i.e. the time of the rental is the same as the time of the work.

Deducting monthly rent as an expense through Eezy is only possible when it can be verified that the rent for the premises is directly related to the work you do and that the rental expense does not have personal use. In this case, we need a breakdown of the rent, how the space has been used. For example, a hairdresser’s rental chair can be verified to be directly related to the execution of the work. On the other hand, rent for storage space, for example, is not considered an expense directly related to the performance of the work, so you cannot deduct it through Eezy (you may be able to deduct such expenses in your personal taxation).

Tax Administration’s guide: Occupational expenses from earned income

How to apply for expense reimbursements

  • First invoice your client for your work

    If possible, also invoice your client for the expenses and separate them on their own rows. This way, you have the option for tax-free reimbursement of travel expenses.

  • When creating an invoice

    please indicate in our extranet that the invoice in question involves reimbursable expenses from the salary.

  • Before filling out the expense form, please read

    • What are the requirements for receiving reimbursements
    • What are the requirements for expense receipts
    • What expenses cannot be reimbursed through us
  • Fill in the break-down of the expenses in extranet

    and upload the receipts and supporting documents preferably already at the time of invoicing, but no later than 3 days before your salary payment.

  • Deliver the receipts and documents digitally

    We at Eezy aim for a completely paperless office and we manage well with scanned or mobile phone photographed versions of receipts and documents.

How to apply for expense reimbursements on the extranet:

You can apply for expense reimbursements while you create an invoice for your work. When filling out the invoice, be sure to select “I have work related expenses”.

Adding travel expenses

  1. Add travel expenses under Detailed travel information.
  2. Select Add row.
  3. Fill in under Route a precise description of your route, where you started, where you stopped and where you return. For example Place 1-Place 2-Place 1.
  4. Also enter the date and time you left the starting address and returned to the final address, as well as the number of kilometers.
    • If the business trip lasts for several consecutive days, i.e. you do not return home in between, the days can be added on the same row.
    • If you are entitled to a daily allowance or meal allowance, the total number of pieces will be added here.
    • Each day must be added on the expense form as a separate row, i.e. using the Add row function. Sometimes it is also convenient to use the Copy previous row function, which allows you to quickly update only the changed items on your trip
    • If you have invoiced these travel expenses from the client, check the box at the bottom.

Adding supply and material expenses as well as receipts and supporting documents

In order for us to pay you expense reimbursements during your salary payment, we need receipts and a statement of purchases for the Tax Administration. Remember that purchases must be directly related to your invoicing.

  1. Add Receipts and documents under Supply and material expenses.
  2. Press Add row to enter each expense document as a separate row.
  3. In the Explanation of purchase for bookkeeping section, tell us exactly what supplies you have purchased.
  4. Add the amount and the VAT rate of the expense document. If the receipt has multiple VAT rates, add each different VAT rate purchase to a separate row. If your purchase is from abroad, select 0% VAT, regardless of the VAT rate in that country.
  5. The purchase date is the date of the payment receipt and if the purchase was made on an invoice, enter the date of the invoice here, not the date of the payment receipt on the invoice.
  6. Add receipts electronically, you can either take clear pictures of them on your mobile phone or scan them.
    • The file format is jpg or pdf.
    • If you have more than one receipt, you can fit 1 to 4 receipts on one A4 so that each is clearly readable.
    • Keep the original receipts and invoices until the salary payment just in case there is something wrong in the files you sent, and we must ask you for them again.If the currency of the expense document is other than euro, please also include, for example a document of the card transaction in euros. In this way, we ensure that the exchange rate and any commission from your card company are considered in your expenses.
  7. You can write us a message regarding expense reimbursements or documents under Additional information.
  8. Expenses are processed during salary payment and if, for example, your expenses need clarification, we will contact you.

It is good to remember that the expense reimbursements paid to you are not salary and will not appear on your salary certificate. We report to the income register the salaries paid for the work you do, as well as tax-exempt and taxable expense reimbursements. Only expenses reimbursed based on a mere document will not be declared.

Examples of reimbursable expenses

Supplies, materials, and travel related to the invoiced work should always be purchased as separate purchases, so that the receipt can be assigned to the invoice. We always check all your receipts as one unit. One receipt cannot be divided into applying to several different invoices.

A receipt cannot be used as a basis for deduction if it contains a single product which the Tax Administration does not accept as deductible. For example, tobacco products and alcohol on a receipt always result in the entire receipt being rejected.

Example 1: Receipt includes products that are directly related to the work / not related to the work

Nails
Screws
Angle bracket
Sandpaper

In construction work, these are expenses directly related to the work.

Nails
Cordless drill
Screws
Ice cream

The receipt cannot be used because the receipt contains products that are not directly related to the work: the cordless drill is a tool for long-term use and ice cream is not a work-related expense.

Example 2: Expense reimbursement depends on the occupation

Copying paper
Printer ink
Pencils

Property manager’s receipt: In the work of a property manager, these are expenses directly related to the work.

Copying paper
Printer ink
Pencils

Equine massage therapist: These expenses are not directly related to the massage work, but are related to, for example, marketing and administration. 

Example 3: Prohibited products on the same receipt with work-related supplies

Detergent
Rags
Paper towel

In the work of a cleaner, these are expenses directly related to the work.

Detergent
Rags
Pack of cigarettes

Tobacco or alcohol products must not be on the receipt.

Example 4: Rental receipt for a space or equipment

Jan 1st, 2020 8am-4pm
Jan 4th, 2020 9am-2pm
Jan 5th, 2020 7am-4pm

The receipt specifies the days and times of the rented space or equipment. An itemized receipt can be used to verify that the rent is directly related to the work done. Note! The receipt is compared to the work you invoiced, timeline, and your occupation.

Rent Jan 1st -31st, 2020

Long-term rental space or equipment can also be used for work other than the one you are invoicing for and therefore cannot be reimbursed through us. However, you can always report such an expense in your personal taxation as an income deduction.