Scanning receipts: from till slip to books that add up
Scan a receipt right after the purchase: photograph the whole slip from straight above, check the date, supplier, amount and VAT, and link it straight away to the expense in your books. After that the paper can go, because the Dutch Tax Administration accepts scanned receipts as long as you keep the scan for 7 years and it stays verifiable. Below are the steps, the retention periods and the mistakes that make a receipt worthless afterwards.
Scanning receipts in four steps
Step 1: scan the receipt on the spot, at the till or in the van, not at the end of the quarter. Step 2: lay it flat on a plain surface and photograph it from straight above, with the whole receipt in the frame, including the bottom with the total and the VAT breakdown. Half a receipt is not proof.
Step 3: check that the date, the supplier's name, the description, the amount and the VAT amount or rate are legible. An app that reads the receipt fills those fields in for you, but always check them: a misread figure otherwise goes into your VAT return unnoticed.
Step 4: link the scan to an expense straight away, with supplier, amount and category, and where relevant to the job you bought the materials for. Only then does it count towards your VAT deduction. A photo in a loose folder on your phone exists, but it will not turn up by itself when you file your return.
What has to be legible on the scan?
The date, the supplier's name, a description of what you bought, the amount and the VAT amount or rate. If the VAT amount is missing, you cannot reclaim it, however clear the rest of the receipt is. So check that before you throw the slip away, not when you do your return.
Thermal paper is the biggest risk here. Many shops' till receipts fade within months, especially in a hot van or in the sun. That means the scan is often the only legible version you will have left, so make it straight away.
There is also a difference between a till receipt and an invoice. For small amounts the Dutch Tax Administration accepts a simplified invoice with fewer details on it. Above that limit it has to be a full invoice, with your business named as the customer. Ask for one when you make a larger purchase, because a till receipt without your details is not enough then.
How long do you keep receipts, and can the paper go?
In the Netherlands you keep receipts and invoices for 7 years, like the rest of your records. For immovable property, such as the renovation of a business building you own, the period is 10 years. These are the periods the Dutch Tax Administration states, and they apply to a sole trader too.
Scanning and keeping receipts digitally is allowed. The Tax Administration sets two conditions: you keep the digital version for 7 or 10 years as well, and it must be verifiable within a reasonable time. In practice that means the scan is complete and legible, it has not been altered afterwards, and you can find it with the booking it belongs to. If the scan meets that, the paper receipt can go.
If a scan is illegible or part of it is missing, the original remains the proof. So check your scans before you clear out. If you are unsure about a specific document, ask your bookkeeper rather than throwing it away: throwing away is the one step you cannot undo.
Which app do you use to scan receipts?
A good receipt app does four things: it photographs the receipt from your phone, reads the amount, VAT, date and supplier, lets you check those details before they are saved, and puts the receipt directly against an expense in your books. Without that last step you have a tidy PDF but still no booking, and you end up retyping everything at VAT time.
A separate scanning app next to your accounting software therefore means double work: scanning in one app, retyping in the other. Choose accounting software with its own scan function, so the photo and the booking are in one place. That also prevents double bookings, because you can match the receipt to the payment on your bank statement.
In TelMaar you choose Scan receipt under Purchase invoices in the Android app. The app reads the amount, the VAT rate, the date and the supplier on your phone itself and leaves a field empty when it is unsure, so you fill it in. You link the receipt to an ongoing job, and the photo stays with the expense as proof. In the web app you enter a receipt by hand and upload the photo with it.
Which mistakes cost the most afterwards?
The first is the faded receipt. Leave thermal paper lying around for months before scanning it and you are left with a grey patch. The expense has been made, but the VAT can no longer be reclaimed because there is no legible proof left.
The second is the till receipt without your business name on a larger purchase. Above the limit for a simplified invoice, your business must be named as the customer on the document. Ask for that when you buy, because getting an invoice in your name from a DIY store afterwards is much harder.
The third is the mixed or duplicate receipt. A receipt with materials for a job and groceries for home is not a business receipt; split it, or ask the till for two receipts. And the same expense often comes in twice, as a receipt and through the bank: without a link between the two, the cost appears twice in your records.
Frequently asked questions
How do you scan a receipt for your bookkeeping?
Photograph the whole receipt from straight above right after the purchase, including the total and the VAT. Then check the date, the supplier, the amount and the VAT amount, and link the scan straight away to the expense in your books. Only then does it count towards your VAT deduction.
How long do you have to keep receipts in the Netherlands?
7 years, like the rest of your records. Receipts and invoices for immovable property must be kept for 10 years. A scanned receipt is fine too, as long as you keep it just as long and it stays verifiable.
Can I throw away my paper receipts after scanning them?
Yes, if the scan is complete and legible, has not been altered and you can find it for the whole retention period of 7 (or 10) years. Check the scan before you clear out, because throwing away cannot be undone.
This article is general information, not tax or legal advice. When in doubt, consult an adviser; rules can change.
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Sources
Tax content reviewed by: TelMaar Team