Administration fee on a traffic fine: what may you charge?
Every fine costs time: finding out, recharging, following up. More and more companies therefore charge a handling fee. What is reasonable, and how does VAT work?
Handling a fine is work: importing the notice, finding the driver, sending a payment request, reminding, processing. Lease companies have charged administration fees for years. Employers and staffing agencies increasingly do the same. That is allowed, but not without limits.
What is allowed
There is no statutory rate for administration fees on traffic fines in the Netherlands. Two conditions from general contract law and employment law do apply: the fee must be agreed in advance, for example in the lease contract, the employment contract or a car policy, and it must be reasonable in relation to the work. A fixed amount per fine is the most common and the easiest to explain.
How VAT works
The fine itself is not payment for a service; you pass it on without VAT. The administration fee is a service you provide, and that does carry VAT. On an invoice the fine and the handling fee therefore appear separately: the fine without VAT, the handling fee with VAT. Check with your accountant how this works out in your situation.
Worked example
Fine €50.00, handling fee €15.00, 21% VAT on the handling fee €3.15. The driver pays €68.15 in total. The fine stays €50.00; only the fee is taxed.
How to automate it
- Set the amount once – with the VAT rate and the name that appears on the invoice, for example ‘Administration fee’.
- Apply it to every new fine – existing fines keep their amount.
- Send an invoice automatically – as soon as the payment comes in, with an incrementing invoice number and your company details.
- Let business customers pay on invoice – with a payment term of your choice.
How Fleetfines helps
In Fleetfines you switch on handling costs in Settings. Every new fine automatically gets the amount and the VAT added, the driver sees the breakdown in the payment request and receives a PDF invoice after paying. Read more about handling fees and invoices.
This article is general information, not legal advice. Check the current rules with the CJIB, the Dutch government or your adviser.
Frequently asked questions
Is there a maximum administration fee for a fine?
No, there is no statutory maximum. The fee must be agreed in advance and be reasonable in relation to the work you do for it.
Do I have to charge VAT on the administration fee?
As a rule, yes: the administration fee is a service. The fine itself is passed on without VAT. Check with your accountant for your situation.
Can the fee differ per fine?
In Fleetfines you set one fixed amount that is applied to every new fine. Per fine you can choose the payment method, for example online or on invoice.
Handling fines without the hassle? This is how Fleetfines works.
Try Fleetfines completely free. After that you pay one fixed price of €5 per month (excl. VAT), with everything included.