Travel expense reporting is part of the standard process in almost all companies, especially when employees work outside their usual workplace — whether during customer visits, supplier meetings, business partner meetings or activities at other company locations.
The challenge for companies lies in two ways: On the one hand, they must take into account constantly changing lump sums and tax rates; on the other hand, it is crucial to use modern tools for travel expense reporting so as not to lose track of a jumble of Excel spreadsheets and paper documents.
What is a travel expense report?
The travel expense report provides a clear list of all expenses that have arisen as part of a business trip. And: Calculating travel expenses is important, because precise documentation is not only important for internal billing, but also plays a decisive role in any financial audits. When you create a travel expense report, you should definitely make sure that you can present all supporting documents in the event of an audit.
Travel expense report: Which costs can be claimed?
The term travel expenses summarizes all costs incurred during a business trip. These consist of these main categories:
Additional catering expenses: Includes expenses for meals during a business trip.
Travel expenses: Includes expenses for travel to and from the destination.
Accommodation costs: Includes expenses for accommodation during a business trip.
Travel ancillary costs: Includes various additional expenses that may arise during a business trip.
Calculate additional catering expenses correctly
The additional meal expenses represent a lump sum that helps your employees with the costs of eating and drinking during a business trip. The regulations for this travel allowance are in Section 4 Paragraph 5 No. 5 sentence 2 of the Income Tax Act defined and integral part of the average travel expense report.
According to the Growth Opportunities Act, an increase in the VMA to 16 euros or 32 euros was planned as of January 1, 2024. Since the legislative process has not yet been completed, the amendment will only come into force in the course of 2024 and will then apply retroactively. Until adoption, the amounts from 2023 apply:
Duration of mission VMA 2023Planned VMA 2024One-day trip <8 h0 €0 €One day trip: 8 to 24 h14 €16 €Multi-day trip: arrival/departure day (regardless of duration) 14 €16 each Multi-day trip (full interday 24 h) 28 €32 € each
Update: The planned increase in Meal packages As of 2024, the Conciliation Committee was removed. The known amounts of 14 EUR and 28 EUR for domestic stays therefore remain unchanged.
This is how you can calculate travel expenses
Employees can deduct travel expenses from tax as advertising costs, with a Commuter allowance of 30 cents per kilometer for the one-way route applies. This regulation concerns trips to the main workplace.
Also costs for Business trips and continuing education can be claimed. In contrast to the commuter allowance, business trips allow travel to and from there to be taken into account. If there are several workplaces, one is defined as the main place of work, for which the commuter allowance applies.
carpooling can claim up to 4,500 euros, but without detours for passengers.
This is how accommodation costs are correctly billed
When employees stay at the 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 a company's own credit card or by company transfer.
Alternatively, companies can also apply a flat rate for accommodation. Within Germany, this flat rate is 20 euros, while abroad it is regulated on a country-specific basis and is usually higher.
This is how ancillary travel expenses are correctly billed
Employers usually also reimburse other expenses incurred in connection with travel, such as parking or tolls, fees for business phone calls and claims such as theft of personal or professional property. It is important to keep all receipts! If no document is available, the employee must create a personal document with all relevant information in order to be reimbursed for the costs incurred.
In principle, these expenses are not reimbursed
Your employees cannot claim all expenses as part of a travel expense report! These include
Business and business trips: What does that include?
Legally speaking An activity is considered a business trip if your employees are engaged in so-called “work abroad”. Determining exactly when an employee is away requires a reference location.
Since 2014, this has been referred to as the “first place of activity” in technical jargon, which corresponds to the actual workplace. This is the place where work takes place during periods without traveling. 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.
Who covers travel expenses?
Normally, the employer covers travel expenses — but this is not mandatory. Companies often set travel guidelines to create clear framework conditions for business trips.
If the employer does not bear any costs and the distance to work is shorter than to the business trip, employees can deduct the costs as advertising costs via income tax, but must keep all relevant documents for the tax return.
What does a travel expense report have to look like?
Formally, there are no fixed 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 carried out. In practice, however, it is advisable to establish internal standards in order to facilitate auditing by the accounting department and to avoid possible errors.
Who can create a travel expense report?
A travel expense report can be prepared by anyone who undertakes professional or business trips and then has to settle their expenses. The exact guidelines and processes for preparing the travel expense report may vary depending on the company or organization. However, there are often appropriate internal guidelines or Software for travel expense reportsthat support the process.
Calculate travel expenses correctly: With ZEP
The rapidly developing business world requires constant adjustments, and business trip accounting is no exception. In this context, our travel expense reporting module sets new standards and transforms the way companies manage their business trips. The module is equipped with the following functions for the programs ZEP Compact and ZEP Professional available:
These are the advantages of ZEP document entry
With the ZEP Travel Expense Reporting module, you can speed up the recording of documents such as hotel invoices, taxi receipts or train tickets. This allows them to be assigned to projects almost effortlessly. Travel data and receipts can be recorded together for a specific project, which enables a transparent and precise allocation of costs.
Mobile recording on the go
With the mobile ZEP app For iOS and Android, your employees easily enter receipts and expenses while on the go. By simply uploading documents to the corresponding project, you speed up the entire billing process.
Versatile entry of individual documents
Our travel expense report software makes it possible to enter several individual amounts per document, even if they are subject to different tax rates. This ensures that no costs are overlooked and that travel expenses can be settled precisely.
Automatic currency conversion
Automatic currency conversion into customer currency eliminates manual calculations and increases billing accuracy in a globalized business world.
Additional catering expenses
The automated calculation of additional catering expenses simplifies the complex process and makes it possible to define work locations with the corresponding flat rates as well as configurable percentage deductions for meals received.
Professional project controlling
The module offers a comprehensive project controlling function, which ensures that all costs are precisely recorded and assigned to the corresponding projects. This not only allows you to keep track of your costs, but also allows you to Profitability of your projects maximize.
FAQ
Can I make a travel expense report retroactively?
Yes, but you must submit your travel expense reports within a reasonable period of time, which is usually set and reported by the employer. These deadlines may be set out in the company's employment contract or in a travel expense policy and take precedence over legal limitation period of three years in accordance with § 195 BGB. However, the time limits set by the employer must 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 expenses.
How quickly must travel expenses be reimbursed?
In Germany, employers generally have to incur travel expenses within three months refund. If not all required supporting documents have been submitted, the employer is required to provide a provisional refund six months after the end of the business trip.
