Can I claim my travel expenses for business trips in my income tax return?
August 1, 2023 | 40,00 EUR | answered by Andreas Stricker
Dear tax advisor,
my name is Max Fritsche and I am a self-employed entrepreneur in the IT services industry. In my line of business, it is necessary to regularly travel to customer appointments and projects. This naturally incurs a lot of travel expenses, such as fuel costs, toll fees, accommodation expenses, and meal allowances.
In the past, I have always borne these costs myself without declaring them in my income tax return. Now I am wondering if it is possible to deduct these travel expenses for tax purposes and if it is even advisable to do so. I am concerned that I may be giving away money by not deducting these costs.
Could you please explain to me if and to what extent I can declare my travel expenses for business trips in the income tax return? Are there specific requirements that I must meet for these costs to be tax deductible? And how exactly do I report these costs in the tax return?
I would greatly appreciate it if you could help me with this question, as I am not very knowledgeable in tax matters. Thank you in advance for your assistance.
Sincerely,
Max Fritsche
Dear Mr. Fritsche,
Thank you for your inquiry regarding the tax deductibility of travel expenses in your income tax return. As a self-employed entrepreneur in the IT services sector, it is indeed very important to accurately report the incurred travel expenses in order to potentially take advantage of tax benefits.
In general, you can deduct the incurred travel expenses for business trips in your income tax return as business expenses. This includes costs such as fuel, toll fees, accommodation, and meal allowances. These costs reduce your profit and therefore also your tax burden.
In order for the travel expenses to be tax deductible, they must be work-related and necessary. This means that the trips are related to your business and are necessary for generating income. Additionally, you must be able to prove the costs with appropriate receipts. Therefore, it is important to keep all receipts and invoices carefully.
In your tax return, you report the travel expenses in the EÜR attachment (profit and loss statement). There, you can enter all business expenses, including travel expenses, and offset them against the income. If you do not use the EÜR attachment, you can also directly indicate the travel expenses in the S attachment (income from self-employment).
It is indeed beneficial to report the travel expenses in your income tax return as it can reduce your tax burden. However, you should ensure that the information provided is accurate and complete to prevent possible inquiries from the tax office.
I hope that this information has been helpful to you. If you have any further questions or need assistance with preparing your tax return, I am happy to help.
Best regards,
Andreas Stricker
