In almost all companies, travel expense accounting is part of the standard process, especially when employees are working away from their usual place of work - be it for customer visits, supplier meetings, business partner meetings or activities at other company locations.
The challenge for companies is twofold: on the one hand, they have to take into account constantly changing lump sums and tax rates; on the other hand, it is crucial to use modern tools for travel expense accounting so as not to lose track in a jumble of Excel spreadsheets and paper documents.
Table of contents - What you can expect:
Travel expense report: Which costs can be claimed?
What should a travel expense report look like?
Who pays the travelling expenses?
Settle travel expenses with ZEP
The travel expense report provides a clear overview of all costs incurred during a business trip. And: Calculating travel expenses is important, because precise documentation is not only important for internal accounting, but also plays a decisive role in any financial audits. When you prepare a travel expense report, you should always make sure that you can present all receipts in the event of an audit.
The term travel expenses summarises all costs incurred during a business trip. These are made up of the following main categories:
Additional catering expenses: Includes costs for meals during a business trip.
Travelling expenses: Includes expenses for travelling to and from the destination.
Accommodation costs: Includes expenses for accommodation during the business trip.
Ancillary travelling expenses: Includes various additional expenses that may arise during a business trip.
The additional meal allowance is a lump sum that supports your employees with the costs of food and drink during a business trip. The regulations for this travel allowance are set out in §Section 4 (5) no. 5 sentence 2 of the Income Tax Act and an integral part of the average travel expense report.
According to the Growth Opportunities Act, an increase in the VMA to EUR 16 or EUR 32 was planned for 1 January 2024. As the legislative process has not yet been finalised, the change will only come into force in the course of 2024 and will then apply retroactively. Until it is passed, the amounts from 2023 will apply:
Duration of the business trip | VMA 2023 | Planned VMA 2024 |
One-day trip <8 h | 0 € | 0 € |
One-day trip: 8 to 24 h | 14 € | 16 € |
Multi-day trip: Arrival/departure day (regardless of duration) | 14 € each | 16 € each |
Multi-day trip (full intermediate day 24 h) | 28 € each | 32 € each |
Employees can deduct travelling expenses from their tax bill as income-related expenses, whereby a Commuter allowance of 30 cents per kilometre for the one-way journey applies. This regulation applies to journeys to the main place of work.
Costs for Business trips and further training can be claimed. In contrast to the commuter allowance, business trips allow the outward and return journey to be taken into account. If there are several places of work, one is defined as the main place of work to which the commuter allowance applies.
Car pools can claim up to 4,500 euros, but without detours for passengers.
If employees stay overnight in a hotel during a business trip, the company covers these costs within the agreed budget. The prerequisite for this is that the hotel bill has not already been paid by the company's own credit card or by company bank transfer.
Alternatively, companies can also apply a flat rate for overnight stays. Within Germany, this flat rate is 20 euros, while abroad it is regulated on a country-specific basis and is generally higher.
Employers usually also reimburse other expenses incurred in connection with the trip, such as parking or toll charges, charges for business telephone calls and damage claims such as theft of personal or business items. It is important to keep all receipts! If no receipt is available, the employee must prepare a self-certification with all relevant information in order to be reimbursed for the costs incurred.
Your employees cannot claim all expenses as part of a travel expense report! These include
From a legal perspective an activity is deemed to be a business trip if your employees are on a so-called "away activity". The exact determination of when an employee is away from home requires a reference location.
Since 2014, this has been referred to in technical jargon as the "first place of work", which corresponds to the actual workplace. This is the place where the work takes place during periods without travelling. The definition of a "first place of work" refers to the fact that your employees spend at least two days a week or a third of their working time there.
The employer normally covers travel expenses - but this is not compulsory. Companies often define travel guidelines in order to create a clear framework for business trips.
If the employer does not cover any costs and the distance to the place of work is shorter than the business trip, employees can deduct the costs as income-related expenses via income tax, but must keep all relevant receipts for their tax return.
There are no fixed formal requirements for a travel expense report. From a legal perspective, neither a signature nor a specific form is required. This means that, in theory, a handwritten travel expense report can be completed. In practice, however, it is advisable to establish internal standards to make it easier for the accounting department to check and avoid possible errors.
A travel expense report can be created by anyone who travels for work or business and then has to account for their expenses. The exact guidelines and processes for creating a travel expense report can vary depending on the company or organisation. However, there are often corresponding internal guidelines or Software for travel expense reportsthat support the process.
The rapidly evolving business world requires constant adaptation, and expense reporting is no exception. In this context, our Travel Expenses module sets new standards and transforms the way organisations manage their business travel. The module is available with the following functions for the programmes ZEP Compact and ZEP Professional available:
With the ZEP Travel Expenses module, you can speed up the entry of receipts such as hotel bills, taxi receipts or train tickets. This makes assigning them to projects almost effortless. Travel data and receipts can be recorded together for a specific project, which enables transparent and precise allocation of costs.
With the mobile ZEP App for iOS and Android, your employees can easily record receipts and expenses on the go. By simply uploading receipts to the corresponding project, you can speed up the entire accounting process.
Our travel expense report software allows you to record multiple individual amounts per receipt, even if they are subject to different tax rates. This ensures that no costs are overlooked and that travel expenses can be accounted for accurately.
Automatic currency conversion into the customer's currency eliminates manual calculations and increases the accuracy of invoicing in a globalised business world.
The automated calculation of additional meal expenses simplifies the complex process and enables the definition of work locations with the corresponding flat rates as well as configurable percentage deductions for meals received.
The module offers a comprehensive project controlling function that ensures that all costs are precisely recorded and allocated to the corresponding projects. This not only allows you to keep track of your costs, but also enables you to Profitability of your projects maximise.
Yes, but you must submit your travel expense claims within a reasonable time limit, which is usually set and communicated by the employer. These deadlines may be specified in the employment contract or in a company travel expenses policy and take precedence over the statutory limitation period of three years in accordance with § 195 BGB. However, the deadlines set by the employer may not be shorter than three months. If you do not submit your travel expense report within this period, you will lose your right to reimbursement of the expenses.
In Germany, employers generally have to reimburse travel expenses incurred within three months reimbursement. If not all the necessary receipts have been submitted, the employer is obliged to make a provisional reimbursement six months after the end of the business trip.
Read article ↗
Read article ↗
We answer your questions quickly & competently. Contact us by phone or email.
+49 7156 43623-0 or contact form