What is an udlæg (out-of-pocket expense)?

In short

An udlæg is an expense paid out of your own pocket on the business's behalf — the owner or an employee covering materials or a flight, say.

In practice

With a valid receipt the outlay is reimbursed tax-free, and the business gets its deduction and input VAT as usual. Owner outlays are typically booked via the owner's current account. Fixed monthly allowances without receipts, by contrast, are taxable.

Related terms

• Mellemregningskonto (owner's current account)
• Bilag (receipt/voucher)
• Fradrag (tax deduction)
• See every term in the dictionary

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