What is business travel?
A business trip is a trip that benefits and is relevant to a company in one way or another.
It refers to a trip that lasts more than 24 hours, and you must travel so far from home that you cannot sleep at home.
Business trips, employee trips, company trips, business travels – many names for the trip you take for work, but regardless of what you call it, there may be many expenses to keep track of.
You can handle all expenses from you business trip automatically with Acubiz
With Acubiz at hand, you can quickly and efficiently keep track of your travel expenses all in one place – right in your pocket.
A business trip can, for example, be a trip where you travel to a supplier to choose materials for your next clothing collection. You may need to handpick unique items for your store from a foreign supplier. Or it could be something entirely different that takes you away from home for more than 24 hours and is relevant to your company’s growth.
Business travel rules you should know
Business travel and tax - know your allowances
If you have expenses for food, taxis, hotels, or other necessities on your business trip, your employer can pay a tax-free travel allowance. The tax-free travel allowance is also known as an allowance and is paid tax-free according to specific rates.
The rates per day in 2023 are as follows:
- Lodging: 238 DKK
Meals and other minor necessities for employees: 555 DKK - Meals for tourist chauffeurs on business trips in Denmark: 75 DKK
- Meals for tourist chauffeurs on business trips abroad: 150 DKK
If your employer doesn’t pay for lodging, meals, and a cup of coffee (or other minor necessities) on your trip, and you don’t receive a per diem, you can instead get a travel deduction.
Learn more about tax-free travel allowance and travel deductions on the Skattestyrelsen website (Danish Tax Authority)
VAT rules on your business trip
Are you on a business trip in Denmark or abroad? It affects the VAT rules.
On a business trip in Denmark, you are entitled to a full VAT deduction for expenses for hotel stays, while you are entitled to 25% of the VAT for restaurant expenses.
However, if you have stayed at a hotel or visited a restaurant on your business trip abroad, you must pay VAT according to the applicable VAT rates in that country. Therefore, you do not have a VAT deduction for business trips abroad.
Nevertheless, you can fully or partially apply for a refund of the VAT if the rules of that country allow it. In that case, you can get a VAT refund from the country where you had hotel stays or similar expenses.
You can claim your foreign VAT and have it refunded with Acubiz
With Acubiz, you can avoid applying for foreign VAT refunds yourself, as we take care of everything.
You can read more about VAT refunds on the Skattestyrelsen website (Danish Tax Authority).
Do you want to know more?
With Acubiz, you can also get help keeping track of other work-related expenses. For example, you can use our app to streamline and digitize your expense management.
Here, you can, among other things, create a better overview of employee outlays and document them, making bookkeeping easier.
Contact us if you want to know how we can help your business or book a free online demo to learn more.