SETLEMENT OF AN ANTREPRENEUR'S BUSINESS TRIP
During business trip, as an entrepreneur, you have the right to classify expenses related to it as costs (but not all of them). The basic requirement is that the expenses have been incurred in order to generate revenues, maintain or safeguard source of revenues - that is in the same way as you settle other costs in your activity.
What expenses can be included in the costs
- If you use means of public transport (train, bus, plane) during a business trip, in the ticket price for journeys. There are no restrictions as to the type and class of the means of transport.
- If you travel by a company car, which is deemed to be fixed assets - the cost will be expenses actually incurred for the purchase of fuel, parking charges, motorway toll road and car repair, washing, towage. The basis for settlement are e.g. invoices, bills, proof of payments.
- If during the trip you drive a car which does not appear in the records of fixed assets and is calculated on the basis of kilometric records - you will include expenses up to a maximum of the number of kilometres driven (amount of number of kilometres multiplied by the rate per 1 km, appropriate to a given vehicle). In this context, please note that you are obliged to keep records of the kilometric record of the vehicle. Restriction shall not apply to passenger car under leasing agreement and cars other than passenger cars.
Within the limit of kilometric allowance tax costs are not only the running costs but also other costs connected with the use of a car, e.g. parking costs and toll road and motorway transport, excluding cars rental (general interpretation MF DD2/033/55/MWJ/13/RD-111005).
If you use a car park during the trip and you have evidence in the form of a coupon or ticket that does not have a name of your business, you should draw up the internal proof for proper clearance and attach a document.
Expenses incurred abroad for the purchase of fuel and oil can be documented with receipts. On the back you should write your data ( an entrepreneur) and the type of purchased goods.
- Accommodation costs can be accounted for on the basis of an invoice or bill ( there are no limits for entreprenenurs).
Costs of travel by public means of transport
If you use means of public transport, you will settle the cost in the amount of the ticket or other document from which results the expenditure incurred for a specific means of transport (lump-sum relating to employees do not apply to entrepreneurs).
You can classify as the costs also other expenses, such as the purchase of tickets to different kinds of fairs, exhibitions, shows, the baggage fee in the amount shown on the invoice or bill.
Note that expenses for meals cannot be classified as costs. During the trip you are entitled to the daily allowance. You can include it in costs, but only up to the amount of the allowance that employees are entitled to. The document which is the basis for recognition it as cost is an internal proof - settlement of the business trip. Apart from the allowance, an entrepreneur is not entitled to any other lump sum.
How to convert costs in foreign currency
If during your business trip you received documents proving expenditure in another currency, you should convert it to zloty. In the case of expenditure actually incurred (e.g. motorway toll, accommodation), according to the average exchange rate of the NBP at the day preceding the date of issue of the invoices (other evidence) to demonstrate costs related to travel. In the case of daily allowance – you should convert it according to the average exchange rate of the NBP at the date preceding the date of issue of the internal proof.
For business travel you can account for VAT under general rules, as in the other taxable activities. Please note that VAT for catering and accommodation cannot be deducted. Non-recoverable VAT can be counted as deductible costs.
You are entitle to deduct VAT with documents recognised in accordance with law as invoices, including those which prove travel on toll motorway or travel at a distance of not less than 50 km, issued in the form of a single ticket. The document should include: number and date of issue, name of the taxable person, the number by which the taxable person is identified for tax purposes, information that allow to identify the type of service, the amount of the tax, the total payable amount.