Kilometer Reimbursement in Belgium: Rules and Reimbursements for SMEs and the Self-Employed (Guide 2025)

Properly managing mileage reimbursements for mobile employees remains an ongoing challenge for many SMEs and self-employed individuals in Belgium. Tax and social legislation is complex, changes regularly and requires accurate administration. A flawed approach can lead to errors, unnecessary costs or even penalties. In this guide, we explain how mileage reimbursement works in Belgium, what the official rates are and the important differences between employees and the self-employed - so that you as a business owner can make safe and profitable decisions.

Understand Tax Refunds and Official Rates

As an employer in Belgium, you may give your employees an allowance for professional travel using their own vehicle. This reimbursement is usually not considered taxable income for the employee and is exempt from social security contributions for both parties, provided the official maximum amounts are respected. These rules apply to travel that takes place in the course of work - such as client visits, external meetings or travel between different work locations. It is crucial to distinguish these from commuting, for which other rules apply.

The official rates are regularly updated and published by the Federal Public Service BOSA (Policy and Support) via circulars from the FPS Finance. These circulars are the official reference for accepted mileage allowances. The tax authorities accept that these allowances cover actual costs, as long as they are based on the actual number of kilometers driven and the amount does not exceed the allowances the government grants to its own staff - this is considered acting "according to serious standards."

Although following these flat rates is the most common and straightforward approach, higher amounts can be reimbursed. In that case, however, you as an employer must be able to prove that these higher reimbursements actually reflect the actual costs incurred by your employee for professional travel. For SMEs, adhering to the official flat rates is often the safest and easiest way to maintain tax and social security exemptions and minimize the risk of audit. Deviation requires accurate administration and knowledge of vehicle costing, which creates a significant additional administrative burden.

Regulations surrounding mileage reimbursement, moreover, do not stand still; rates are regularly adjusted based on economic factors such as fuel prices and inflation. This constant evolution means that SMEs must always stay up-to-date. This is an extra burden and source of errors if this has to be done manually. A tool that automatically applies the correct current rates and responds to regulatory changes offers a significant advantage here: easier management and guaranteed compliance - without manually tracking circulars or rate changes.

Quarterly Indexing vs. Annual Indexing: Mileage Fees 2025 and How to Make the Right Choice

In Belgium, there are two main methods for indexing mileage reimbursement: quarterly indexing and annual indexing. Quarterly indexing was introduced in October 2022 to respond more quickly to fluctuations in fuel prices and thus offers a more flexible adjustment. Annual indexing, on the other hand, is done only once a year, usually on July 1.

As an employer, you generally have the freedom to choose which system to apply. But this choice is not always completely optional. In many industries, there are collective bargaining agreements (CBAs) or internal labor regulations that dictate which indexing system or lump sum should be used. So it is crucial to first consult the guidelines within your sector. If there are no sectoral provisions, you are free to choose between quarterly or annual indexation amounts.

⚠️ Please note: whoever chooses the annual system must also stick to it for the entire indexing year (for example, from July 1 to June 30 the following year). So you cannot switch to quarterly indexing halfway through. A return to the quarterly system is possible only from July 1 of the following year.

Below is a summary table of the official mileage allowances for Belgium in 2025

Overview: Differences between employees and self-employed

Practical Examples of Mileage Reimbursement

Example 1: Professional Relocation of a Technician (Employee)

Suppose a technician drives 150 km to make a repair at a customer's location. You apply the quarterly rate for Q2 of 2025: €0.4320/km.

Calculation:
150 km × €0.4320/km = €64.80.

Explanation:
This amount can be reimbursed to the employee tax-free, as long as the travel is purely professional and the official flat rates are respected. For the employer, this is usually tax deductible, depending on the vehicle's carbon emissions, for example. This example underlines the importance of correct trip recording.

Example 2: Commuting (Employee - Tax Perspective)

This is not an employer reimbursement, but a personal tax deduction for the employee. When using a private vehicle for commuting, one may deduct €0.15/km in personal income tax.

Maximum tax exempt amount for AY 2025:€490

Explanation:
. If the employer intervenes in these expenses, this is also exempt up to €490/year. This example highlights the difference between professional travel (reimbursed at higher rate) and commuting (via tax reduction at lower rate).

Example 3: Professional Travel of a Self-Employed Person

A self-employed consultant drives 150 km to a client and opts for the annual flat rate of €0.4415/km (valid from July 1, 2024 to June 30, 2025).

Calculation:
150 km × €0.4415/km = €66.23 (deductible as a professional expense)

Alternative:
Does the self-employed person use an electric car? Then he/she can opt for the deduction of actual expenses. Indeed, electric vehicles are 100% deductible for exclusive professional use. This does require detailed accounting of electricity, insurance, maintenance and depreciation, among other things.

Note:
. This shows the flexibility of self-employed individuals to choose between flat-rate or actual cost deductions. Environmentally friendly vehicles offer additional tax advantages. Correct records are crucial to avoid errors and unnecessary burdens on your SME.

Advantages of Digital Mileage Recording for Belgian SMEs

For Belgian SMEs with mobile employees, accurate recording of professional travel is crucial to avoid fines and optimize costs. Yet many companies still use manual methods - spreadsheets, paper forms or loose notes - that are inefficient, error-prone and difficult to verify.

Problems with Manual Mileage Tracking

• Human errors and incomplete data.
• No possibility of inspection verification.
• Risk of "inflated mileage" and internal fraud.
• Extra administrative burden on your team.

This way of working not only complicates accountability to the tax authorities or the NSSO, but also means wasted time for both employees and administration.

Digital Mileage Tracking with Geolocation: The Smart Solution

Automating mileage tracking using geolocation (as with Done-it) avoids these risks. The software registers automatically:

• Departure and arrival points.
• The actual route driven.
• The exact distance.

This is done without employee intervention, which ensures accuracy and prevents manipulation. Moreover, this approach complies with Belgian requirements for tax-exempt mileage reimbursements.

Visual Overviews and Route Allocation

Digital systems go beyond registration. They make it possible to:

• View routes on interactive maps.
• Assign trips to specific clients, projects or tasks.
• Categorize trip types as professional, private or commuting.

This not only increases legal compliance, but also helps with:

• Better logistics planning.
• Verification of site visits.
• Accurate re-invoicing of miles driven.

Fiscal Compliance and Audit

The Belgian tax authorities require mileage reimbursements to be substantiated "according to serious standards", meaning:

• Accurate recording of actual kilometers driven.
• Traceable data by date, departure and arrival address, and reason for trip.
• Preservation of this information for inspection by FPS Finance or NSSO.

An automated system immediately generates ready-made reports for inspections, saving time and reducing the risk of fines. This is especially important with more than 24,000 km/year per employee, where additional accountability is required.

GDPR & Privacy: Legally Correct Geolocation Use

Geolocation systems must also comply with GDPR and Belgian privacy laws. This includes:

• Tracking of employees must be legitimate and proportionate.
• Employees must be properly informed.
• Location tracking must be able to be turned off outside working hours.

Proper implementation prevents labor disputes and legal problems.

Integration with Digital Hourly Recording

An additional advantage is the link with digital time registration. If the system also records starting and ending hours, you get:

• Precise control of hours worked.
• Live visibility into the location of your mobile employees.
• Reliable data for wages, overtime and absences.

By centralizing this data, your administration becomes simpler, more transparent and efficient - with more control over your daily operations.

Less Paperwork, More Correctly Recorded Mileage

Accurate recording of mileage and hours worked is essential for Belgian SMEs with mobile employees. By automating these processes, you not only comply with tax and social legislation, but also avoid errors, save time and increase operational profitability.

Moving from manual to digital recording provides transparency, control and peace of mind during audits - and makes day-to-day planning much easier.

Done-it bundles everything into one integrated solution: from automatic mileage tracking with Trax-it, to digital time tracking with geolocation, reporting and a centralized dashboard. This simplifies compliance, eliminates redundant administration and gives you full visibility into the activities of your mobile workforce.

But Done-it offers more than just functionality: above all, it gives SMEs peace of mind. The assurance that all data is accurate, verifiable and legally correct lets you as a business owner focus on what really matters: growing your business with confidence, control and efficiency.