How are different expense categories treated in Germany for reimbursement?

Expenses Invoicing Requirements

Velocity Global GmbH or the EEs name. Never the end client's name

Passports/Work Permits/Visa

Can be reimbursed tax-free, if they relate to a business trip and an receipt is provided.

Transportation Expenses

Tax free if approved by the employee’s supervisor.

Per diems

The per diem rate for travel within Germany is € 14.00 for an absence of more than 8 hours

or for the first and last day of a multi-day trip. The full tax-free per diem rate for travel within Germany is

€ 28.00. The per diem rate for travel abroad varies according to the country/city the employee is

traveling to; schedule attached. Velocity Global reserves the right to revise the per diem rate from time to

time in accordance with revisions made by the German tax authorities.

Please note, the per diem rate must be reduced when the employee has expensed a meal, entertained a

client, or the hotel has provided a meal (e.g. breakfast). In this case, the full tax-free per diem rate of the

day is reduced by 20% for breakfast, 40% for lunch and 40% for dinner. If the employee receives breakfast,

lunch, and dinner then the per diem is reduced to zero. Additionally, we can only reimburse either per

diem or meals receipts, not both.

Air Travel/Bus and Train

No issues - Please supply receipt with claim

Taxi, Cabify, Uber, and related apps

No issues - Please supply receipt with claim

Car Rental

No issues - Please supply receipt with claim

Car Parking Fees

No issues - Please supply receipt with claim

Tolls

No issues - Please supply receipt with claim

Other Business Travel-Related Expenditure

No issues - Please supply receipt with claim

Travel Insurance

Can be reimbursed tax-free, if they relate to a business trip and an receipt is provided.

Mileage and Fuel

Mileage claims can be accepted as long as the employee provides all necesary information: start and end address, reason for the claim, distance. The EE can use google maps or the Expensify map feature. The rate is 0.30 EUR per KM and only roudn distance are accept i.e. 300 Km instead of 301.5 km. Fuel is only accept in case of car rental, never for private vehicles.

Accommodation

Accommodation costs can either be included in an overnight per diem or by claiming the invoice through the expense reimbursement system. If the latter is chosen, please be aware of the following: - The reason of an overnight stay must always be business related - Your name, as well as the company name needs to appear on the invoice

Meals (travel/events/during work)

No issues - Please supply receipt with claim

Client Entertainment

For a tax-free reimbursement, the reason for the expense must be a business-related matter. We require the following information to be included: - A description of the reason for the expense, as precise as possible (?Meeting with X? is not sufficient) - Names of all participants (including yours) Please also pay attention to the formal aspects of the invoice: - Only printed invoices are acceptable - Name and address of the restaurant need to be included - Your name needs to be stated - Individual descriptions and prices of meals and beverages should be included (simply writing ?meals and drinks? is not sufficient) -

Staff Entertainment

For a tax-free reimbursement, the reason for the expense must be a business-related matter. We require the following information to be included: - A description of the reason for the expense, as precise as possible (?Meeting with X? is not sufficient) - Names of all participants (including yours) Please also pay attention to the formal aspects of the invoice: - Only printed invoices are acceptable - Name and address of the restaurant need to be included - Your name needs to be stated - Individual descriptions and prices of meals and beverages should be included (simply writing ?meals and drinks? is not sufficient) -

Mobile Phone bills

If a device is purchased for business reason up to 500 USD we can reimburse the monthly phone fees as a non-taxable expense. OR Lump-sum reimbursement: 20% of the invoices amount, but not exceeding EUR 20.00 per month can be reimbursed tax-free, if the you use your private cell phone for business calls without keeping further records on the details of the business calls - Reimbursement of average expenses on business behalf: Based on a three month record an average percentage rate is determined on how much the private cell phone is used for business purposes

Broadband (Internet)

Taxable expense

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

All fixed assets are reimbursed tax free if for business purpose.

Furniture

N\A

Stationery

Tax free

Gifts

N\A

Coworking and Office Rentals

Non-Taxable

Bank Charges

Not be reimbursed.

Foreign Currencies

Reimbursble

Annual subscriptions

Tax free is related to business

Training Expenses

Tax free is related to business

Medical Claims/Health Check Up and related items/Medical Insurance

N\A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

Can be reimbursed tax-free, if they relate to a business trip and an receipt is provided.

Meals (travel/events/during work)

Personal meals cannot be reimbursed tax-free; instead you may use per diems to cover for your additional meal costs when travelling on business. (Please check the ?per diem?- section for more information.)

Di minimus expenses (Tips, no receipt)

Taxable if no receipts.

Payroll Reporting

N/A

Additional Reporting

Each month, expense level detail must be downloaded and prepared in a Pivot table for Finance

Review process

N/A