Business trip

Business Trip: Definition, Working Time Regulations and Cost Coverage

Business trips are an integral part of many professions and require clear regulations. But when does a business trip actually take place, what times are considered working time, and who covers the costs? In this article, you will learn everything you need to know about the topic of business trips.

What is a business trip?

A business trip occurs when an employee travels to a different workplace for professional reasons than their usual workplace. The duration can range from a few hours to several days, and the trip can take place both within Germany and abroad.

Typical occasions for a business trip include client appointments, meetings with business partners, or discussions with colleagues at other locations. Trade fair visits, training sessions, or continuing education can also justify a business trip. What matters is that the trip is made in the interest of the company and is not merely incidental to the professional activity.

However, not every journey within the scope of work is considered a business trip. The daily commute between home and the workplace is regarded as a normal journey and not as a business trip. Short distances within city limits, for example, an appointment with a client nearby, are classified as business errands and not as business trips . If someone undertakes a private journey and attends business appointments during it, they cannot speak of a business trip – only the business-related portion is taken into account.

What counts as working time on a business trip?

The Working Time Act stipulates that a daily working time of eight hours must not be exceeded, although in exceptional cases, up to ten hours are possible. But when exactly is travel time counted as working time?

• Travelling by public transport during working hours is generally considered working time. This applies, for example, to train or plane journeys if they occur during regular working hours.

• Traveling in a company car or private vehicle is always considered working time, as the employee is actively involved in the journey.

• Travel outside regular working hours, such as on Sunday evening for an appointment on Monday, is only counted as working time if the employer instructs that work is to be done during the trip. Otherwise, this time is considered leisure.

• Work during the journey, such as answering emails or preparing a presentation on the train, is regarded as working time regardless of the time of day.

• On-site appointments, such as meetings, presentations, or business meetings, naturally count as working time.

Especially for multi-day business trips, it is important to adhere to working time regulations . Even if a trip takes additional time, the legal maximum working time must not be exceeded.

Who covers the costs of a business trip?

Typically, the employer covers the costs of a business trip. The employee must submit a travel expense report that documents all incurred costs with original receipts .

Reimbursable costs include travel costs, which are covered by train tickets, flight tickets, or a mileage allowance for private vehicles. Currently, this allowance is 30 cents per kilometre travelled. Meal costs can also be reimbursed. There is a so-called meal allowance that is based on the Federal Travel Expense Act and is adjusted annually. However, reimbursement is only possible if the absence lasts at least eight hours.

The accommodation costs are usually also covered as long as they fall within a reasonable range. Many companies have internal guidelines regarding which hotels can be booked in which price category. An hotel invoice is required, as tax authorities do not accept flat-rate accommodation costs. Additionally, there are often incidental travel costs such as parking fees, toll charges, or telephone costs, which can also be reimbursed if receipts are available.

In many cases, employees must initially cover the costs themselves and are reimbursed afterwards. However, some companies provide business travel credit cards that allow travel expenses to be paid directly by the company.

Business trips abroad: Special regulations

Business trips abroad require additional planning, as special regulations apply. Particularly important is the A1 certificate for business trips to EU countries. This certificate confirms that the social security obligation still exists in the home country. Travelling without this certificate risks fines.

Depending on the destination, further formalities must be observed, such as visa or entry regulations. For some countries, specific vaccinations are also required. To avoid problems, companies should inform their employees early about necessary steps.

Another issue is insurance. In some countries, additional travel insurance is required to be covered in case of illness. Companies should establish clear regulations to ensure that employees receive quick assistance in emergencies.

Tax deductibility of business trips

If the employer does not cover all costs, employees can claim the non-reimbursed amounts in their tax return. This is done through the Schedule N of the tax return.

Deductible costs include travel costs, which can either be claimed at a flat rate of 30 cents per kilometre or based on actual costs incurred with proof. The meal allowance can also be claimed for tax purposes, provided the employer has not already reimbursed it. Accommodation costs and incidental travel costs are also deductible, provided they are substantiated with receipts.

Different regulations apply to freelancers and entrepreneurs. They can classify business travel expenses as business expenses, thus reducing their tax burden. Full documentation of costs is also important here to avoid problems with the tax office.

Employer and employee responsibilities regarding business trips

Employers are obligated to reimburse necessary travel costs and ensure that legal working time regulations are adhered to. They should also establish clear guidelines for booking hotels and transportation to create uniform standards.

Employees, in turn, are required to document their business trips properly and submit all necessary receipts . They must also adhere to the internal guidelines for booking hotels and transport. An important point is the use of frequent flyer programs. If flight tickets are paid for by the employer, the earned bonus miles must be used for business purposes and may not be redeemed privately.

Conclusion

Business trips are an important part of many professions, but they also bring numerous organizational and legal questions. While the basic definition of a business trip is relatively simple, there are many detailed regulations that must be observed. It is particularly crucial to distinguish between working time and rest time, as this affects compensation. The reimbursement of travel costs is also subject to clear guidelines that must be followed by both companies and employees.

Especially for international business trips, careful planning is required to avoid bureaucratic hurdles and tax traps. Companies should therefore create clear guidelines for business trips and inform their employees about applicable regulations. Those who engage with the requirements early on can not only avoid legal problems but also take advantage of tax benefits.