How can I claim my travel expenses for tax purposes?
May 10, 2022 | 50,00 EUR | answered by Anna Richter
Dear Tax Attorney,
My name is Benjamin Rosenblatt and I work as a freelance graphic designer. For my work, I am often on the go to client meetings, trade shows, and workshops. This regularly incurs travel expenses that I would like to claim for tax purposes. Unfortunately, I am unsure of the best way to do this.
Currently, I meticulously document my trips in a logbook, where I record the date, destination, mileage, and purpose of the trip. Additionally, I collect all relevant receipts such as gas receipts and toll receipts. However, I have concerns about whether my documentation is sufficient and if I may be overlooking something.
My worry is that incomplete or inaccurate information could lead to issues with the tax authorities. Therefore, I am seeking your assistance to ensure that I have accurately recorded all necessary information and not missed out on any tax benefits.
Can you explain to me what requirements I need to meet for the tax deductibility of travel expenses? Are there specific flat rates that I can use, or do I need to prove each individual trip separately? What is the best approach to correctly report my travel expenses in the tax return and what documents should I definitely keep?
I thank you in advance for your help and look forward to your support.
Sincerely,
Benjamin Rosenblatt
Dear Mr. Rosenblatt,
Thank you for your inquiry regarding the tax deductibility of travel expenses as a freelance graphic designer. It is understandable that you may feel uncertain, as it is important to accurately capture all necessary information to avoid issues with the tax authorities.
In general, travel expenses incurred in the course of your professional activities can be claimed as tax deductible. However, certain conditions must be met. Firstly, the trips must be work-related, i.e. related to your self-employed activities. Private trips are not deductible.
Keeping a record of your journeys in a logbook is generally a good practice to substantiate your trips. It is important that the logbook is kept properly and without gaps. This means that for each trip, you must document the date, destination, starting and ending mileage, and the purpose of the trip. In addition, you should keep all receipts such as fuel receipts, toll receipts, and invoices for repairs or maintenance.
There is also the option to claim the standard mileage rate instead of using a logbook. This allows you to deduct a fixed amount for each kilometer driven. For the year 2021, the standard mileage rate is 0.30 euros per kilometer. However, this rate can only be used for trips between your home and your place of work or other work-related trips.
It is advisable to include your travel expenses in your tax return using the EÜR (income-expenditure statement) attachment. There you can enter the travel expenses as business expenses and deduct them from your taxes. It is important to keep all relevant documents organized and be able to present them to the tax authorities if necessary.
I hope this information is helpful to you. If you have any further questions or need assistance, I am at your disposal.
Sincerely,
Anna Richter
Tax lawyer
