Expenses: An overview
Expenses refer to the costs that arise during a professional trip or when working outside the usual workplace. This includes food costs, travel expenses such as travel and accommodation expenses, and other work-related expenses. Both employees and self-employed persons can claim expenses — employees are usually reimbursed tax-free, while self-employed persons deduct them as business expenses in their tax return.
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Expenses are not only an issue in Germany. In many countries, there are different regulations and packages for food and travel expenses. It is therefore important to find out about the specific regulations depending on the location of use.
Expense report for employees
If employees travel for work, they can have the costs incurred as a result of the trip reimbursed by the employer as expenses. The prerequisite for this is usually a detailed expense report, in which all receipts Must be submitted for food, accommodation and travel expenses. There are two ways in which expenses can be settled:
Meal packages
These lump sums are fixed amounts that employees pay for Additional catering expenses received. The amount of the package depends on the length of absence and the destination (domestic or international). The following applies to trips within Germany:
Large package: If you are absent for at least 24 hours = 28€
Small flat rate: For absences between 8 and 24 hours = 14€
Actual costs with proof of documentation
Alternatively, workers can document all expenses with receipts and invoices. This is particularly useful when the actual costs are higher than the lump sum.
Expense report for self-employed and freelancers
For self-employed people, expenses are an important part of operating expenses. All work-related expenses incurred during a business trip can be claimed for tax purposes. This includes food, accommodation and travel expenses. It is important to keep all receipts so that the expenditure is correctly stated in the tax return.
Self-employed people can pay the costs either via the Income surplus statement (EU) Or in the Profit and loss statement (P&L) capture. There are two options for billing travel expenses:
- Use packages: Similar rules apply here as for employees.
- Detailed document statement: All costs are proven with appropriate receipts and invoices.
Important types of expenses
Expenses include a variety of costs that may arise during a professional trip. This includes:
- Meal expenses
This includes meals such as breakfast, lunch, and dinner, as well as snacks and drinks. Tips are also included, provided there is proof of this.
- Accommodation costs
If employees are accommodated in hotels or guesthouses for professional purposes, the accommodation costs can be reimbursed in full. Important: Breakfast costs must be shown separately, as there are different tax regulations.
- travel expenses
This includes all costs for the round trip, whether by car, train, plane or other means of transport. The journey to the airport or train station as well as parking fees and toll costs can also be billed.
Important tips for reporting expenses
To ensure that all expenses are accounted for correctly, please note the following:
- Collect receipts: All expenditure should be verifiable through receipts and invoices.
- Know packages: Find out about the valid flat rates for meals and travel expenses, especially when traveling abroad.
- Meet deadlines: Workers should submit their expense reports promptly after the trip to ensure smooth reimbursement.
Benefits of expense reporting
✅ Tax relief: Both employees and self-employed persons can claim expenses for tax purposes and thus achieve financial benefits.
✅ transparency: A clear expense report provides greater transparency and an overview of work-related expenses.
✅ flexibility: Even for short-term or frequent business trips, flat rates offer an easy way of billing.
Disadvantages of expense reporting
❌ Documentation costs: Especially for self-employed people, the effort required for document entry and billing can be high.
❌ Failure vulnerability: Without accurate documentation, mistakes can easily occur that lead to tax disadvantages.
Conclusion
Expenses are an indispensable part of professional expenses incurred when traveling or working outside the usual place of work. For employees, they offer tax-free reimbursement options, while self-employed and freelancers can claim them as business expenses. A correct expense report not only makes the tax return easier, but also provides financial relief.