Can I claim the sales tax on my travel expenses?
February 22, 2022 | 40,00 EUR | answered by Felix Schönecker
Dear Tax Advisor,
My name is Xenia Eichenlaub and I run a small start-up business in event planning. Lately, I have been traveling more frequently both domestically and internationally to acquire potential customers and meet business partners. This has resulted in high costs for flights, hotels, meals, and transportation.
Now I am wondering if I can claim the value-added tax on my travel expenses. So far, I have always recorded these expenses as operating costs in my accounting, but I am unsure if I can also reclaim the VAT.
Since my start-up is still in its early stages and I want to use every euro carefully, it is important for me to know if there is a way for me to reclaim the VAT on my travel expenses. This would significantly ease my financial situation and give me more flexibility for further investments.
Could you please explain to me if and under what conditions I can claim the VAT on my travel expenses? Are there specific requirements that I need to meet in order to benefit from this regulation?
Thank you in advance for your help and advice.
Sincerely,
Xenia Eichenlaub
Dear Mrs. Eichenlaub,
Thank you for your inquiry regarding the value-added tax on your travel expenses as the owner of a start-up company in the event planning sector. It is understandable that as a business owner, you are keen on carefully utilizing every euro and taking advantage of possible tax benefits. I would be happy to explain to you under which conditions you can claim the value-added tax on your travel expenses.
In general, the value-added tax regulations for travel expenses both domestically and abroad are outlined in § 15 UStG. You generally have the option to claim the value-added tax on your travel expenses as input tax, provided that these expenses were incurred within the scope of your business and have a direct connection to your entrepreneurial activities. It is important to note that the invoices for the travel expenses are issued in your name or the name of your company, and the value-added tax is separately stated.
In order to reclaim the value-added tax on your travel expenses, you must ensure that the expenses are properly documented. This includes receipts for flights, hotels, meals, and transportation, as well as a detailed breakdown of the expenses and their tax relevance. Furthermore, it is important that the travel expenses were actually incurred within the scope of your business activities and not for personal reasons.
You also need to ensure that the travel expenses are related to taxable sales. If you also make tax-exempt sales, you may not be able to fully claim the value-added tax on the travel expenses. In this case, it is necessary to allocate the input tax amounts in order to determine the tax-deductible costs.
In summary, you can generally claim the value-added tax on your travel expenses as input tax, provided that the expenses were incurred within the scope of your business activities and are properly documented. It is advisable to seek assistance from an experienced tax advisor to help you make the most of possible tax benefits.
I hope this information is helpful to you and I am available for any further questions you may have.
Best regards,
Felix Schönecker
