How does it work with input tax on travel expenses?
January 21, 2022 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
I am Wilhelm Zornitz and I have a question regarding the deductibility of input tax on travel expenses. In my company, travel expenses regularly incur which are subject to value added tax. So far, I have always deducted the input tax on these costs, assuming that they are considered operating expenses and therefore eligible for input tax deduction.
However, I recently heard from an acquaintance that there may be certain restrictions regarding input tax deduction on travel expenses. I am concerned that I may have made mistakes and now have to expect demands for repayment or penalties from the tax office.
Could you please explain to me how the deductibility of input tax on travel expenses works specifically? Are there specific requirements that must be met in order for me to deduct the input tax on my travel expenses? And if I have made mistakes so far, how can I correct them and prevent possible consequences?
I would be very grateful for your help and a quick clarification of this issue, as I do not want to have any uncertainties regarding my tax situation.
Thank you in advance.
Sincerely,
Wilhelm Zornitz
Dear Mr. Zornitz,
Thank you for your question regarding the input tax deduction of travel expenses. It is important to be aware of the conditions and limitations in input tax deduction for travel expenses in order to avoid possible errors and prevent any consequences from the tax office.
In principle, you can deduct the input tax on travel expenses if these costs are incurred in the course of your business and can be proven to serve the purpose of generating taxable turnover. This particularly applies to travel expenses related to business trips or work-related trips. Examples include transportation costs, accommodation costs, meal expenses, and similar.
However, there are certain requirements that must be met in order for you to actually deduct the input tax. Firstly, the travel expenses must be properly documented and evidenced. This includes invoices, receipts, or travel logs. Additionally, the travel expenses must be truly business-related and not for private purposes.
Furthermore, there are specific rules and limitations in input tax deduction for travel expenses, especially regarding meal expenses. There are certain flat rates and maximum amounts that must be considered when calculating the input tax deduction. A detailed breakdown of meal expenses is therefore essential to ensure proper deductibility.
If you have made errors in the input tax deduction for travel expenses so far, it is advisable to correct them promptly. This can be done, for example, by amending the VAT return. It is important to communicate openly with the tax office and clarify any discrepancies to avoid potential consequences such as repayment requests or penalties.
Overall, it is recommended to delve into the tax regulations and rules related to travel expenses in detail and seek professional support from a tax advisor if necessary. This way, you can ensure that you carry out the input tax deduction correctly and in compliance with the law, and avoid potential risks.
I hope that this information has been helpful to you and I am at your disposal for any further questions.
Best regards,
Roberta Schlattmann
