Business trip

What it means

A business trip is a period when the employer sends an employee to work away from their regular workplace or the place agreed in the employment contract. It may be a meeting at a client’s premises in another town, training, a trade fair or an installation abroad. Domestic and foreign business trips are distinguished.

During a business trip the employee is entitled to travel expenses: documented transport costs, accommodation, a meal allowance and necessary incidental expenses. On a foreign trip a foreign meal allowance by country is added, and pocket money may also be paid.

A trip starts with a travel order in which the employer sets the destination, timing, means of transport and accommodation. On return the employee settles the trip within the statutory deadline, and the employer pays the expenses or offsets them against an advance.

How it works in practice

When settling a claim we check the departure and return times, because the meal allowance depends on the length of the trip, and whether it is reduced for meals provided free, such as hotel breakfast. Where a private car was used, we add compensation for using one’s own vehicle.

Expenses at the statutory level are not taxable income for the employee and are tax-deductible for the company. For foreign trips we translate foreign-currency expenses at the rate prescribed by law and check whether the company paid for travel insurance, which also counts as a travel expense.

Directors and shareholders of a limited company are entitled to travel expenses if they are employed or their service agreement provides for it. A sole trader claims the costs of their own business trips as a tax-deductible expense up to the statutory amounts.

What to watch out for

Frequent and long foreign trips may stop being business trips and turn into posting of workers. Different rules on pay, social security and tax then apply, including the 183-day rule and the need for an A1 form.

Travel expenses paid as a flat sum without real trips or supporting documents will be treated as wages in a tax audit. The company then pays the tax and contributions, so we support every trip with a travel order, a settlement and receipts.