Blog post: Simplifying business parking and expense management

What to do with business parking costs?

When it comes to handling parking costs incurred by your company, there are several options available. 

• If employees use their private vehicles for business purposes, you can reimburse the parking costs through a travel allowance.

• When there are call-out costs, you can include the parking expenses accordingly.

• For company cars, parking costs can be included in the profit and loss account (revenue statement). 

It's important to note that not all parking costs incur Value Added Tax (VAT) charges.

Understanding VAT implications

Off-street parking in the EU is usually subject to varying VAT rates, included in the total parking fee, with the specific amount indicated on the parking receipt or invoice. In contrast, on-street parking is generally not subject to VAT in Europe.

In the European Union Member States: 

VAT rates on parking can vary among EU Member States [1]. As of January 2023, here are a few examples:

• Germany: The standard VAT rate in Germany is 19%, which applies to parking services unless they qualify for a reduced rate.

• France: France has a standard VAT rate of 20%, which generally applies to parking services.

• Spain: The standard VAT rate in Spain is 21%, which is typically applied to parking services.

• Italy: Italy has a standard VAT rate of 22%, which is generally applicable to parking services.

• Netherlands: The Netherlands has a standard VAT rate of 21%, which is typically applied to parking services.

• Sweden: In Sweden, VAT is referred to as "moms". 25% VAT is the general tax rate, which applies to most services.

Nevertheless, when utilizing a parking app, any transaction or subscription costs incurred as service fees, which also encompass reclaimable VAT, can be reclaimed for business purposes.

Simplifying the complexity of business parking expense management

Keeping track of multiple employees, vehicles and various costs with and without VAT can quickly become overwhelming. Additionally, the burden of handling paper parking tickets adds to the complexity.

To simplify business parking administration, EasyPark Business digitalizes the entire process, empowering your employees to easily manage their parking activities through a user-friendly mobile app. Additionally, it offers a self-service portal specifically designed for admins, enabling streamlined processes to manage users, review costs, obtain monthly invoices, and manage parking permissions with just a few clicks.

Utilizing a mobile-based paid parking management solution

EasyPark's business solution goes beyond being just an app or employees who park for business. Through the EasyPark Business self-service portal, administrators can say goodbye to the tedious task of dealing with piles of paper receipts and struggling to keep track of individual parking expenses. With EasyPark Business, all your parking costs are effortlessly aggregated into a single invoice. This invoice includes VAT specifications, ensuring clarity in your parking expenses.

In conclusion, business parking doesn't have to be overwhelming or burdensome. By leveraging EasyPark business, you can simplify your parking administration, efficiently manage costs, and ensure compliance with VAT regulations. 

References:
[1] 2023 VAT Rates in Europe & 2023 VAT rates in EU