TABLE OF CONTENTS
This article outlines the updated rules and best practices for expense reimbursement in Austria.
Travel & Mileage Reimbursement
Mileage Allowance
Employees using their private vehicle for business travel may receive a tax-free mileage allowance of €0.50/km, applicable to cars, motorcycles, bicycles, e-bikes, and even walking. An additional €0.15/km may be claimed for each passenger transported.
Conditions for tax exemption:
The trip must be business-related.
The employee must bear the vehicle’s operating costs.
A logbook or equivalent documentation must be maintained.
The allowance is capped at 30,000 km per calendar year.
Covered expenses include:
Fuel, oil, depreciation
Repairs, servicing
Insurance, taxes, tolls
Parking fees, winter equipment
Navigation systems, car radios
Club memberships and financing costs
Important: If the mileage allowance is claimed, parking and tolls cannot be reimbursed separately.
Public Transport & Other Travel Modes
Employees may be reimbursed for actual ticket costs for trains, buses, trams, taxis, and rental cars. If receipts are unavailable, a transport allowance may apply:
€0.50/km for the first 50 km
€0.20/km for the next 250 km
€0.10/km for each additional km
These reimbursements are tax-free if incurred in the employer’s interest and properly documented.
Invoicing & Documentation
Required Documentation
To ensure tax-free reimbursement:
Submit a monthly travel expense report. Refer to the sample attached at the bottom of this page.
Include receipts for all expenses.
Receipts must list the company name and tax ID where applicable.
Thresholds: There is no minimum threshold, receipts are always required unless a flat rate applies under a collective agreement.
Per Diems & Accommodation
Domestic Per Diem Rates (2025)
€30/day for meals (up from €26.40)
€17/night for accommodation (up from €15)
Partial day rates apply based on trip duration:
3–4 hours: €10
4–5 hours: €12.50
5–6 hours: €15
…up to €30 for >11 hours
Meal deductions:
If one meal is provided: deduct 50%
If two meals are provided: deduct 100%
International Per Diems
Rates vary by country and are prorated similarly. The maximum per diem per day is 12/12ths of the applicable rate.
Representation Costs & Gifts
Tax Deductibility Rules
Representation expenses (e.g., client meals, gifts) are generally non-deductible unless:
A clear advertising purpose is proven.
The business motive predominates.
Detailed records are kept (names, purpose, date).
Deductibility:
50% of hospitality costs may be deductible with proof.
100% deductible only if hosting is integral to the service sold.
Low-value promotional items (e.g., branded pens) are fully deductible.
Non-deductible examples:
Social events (birthdays, concerts)
Mixed business/private occasions
Gifts like wine, flowers, event tickets
Wellness & Health Expenses
Wellbeing allowances (e.g., gym, therapy) are subject to income tax and social security contributions. They are not tax-exempt.
VAT & Compliance
VAT is not applicable on reimbursed employee expenses.
Employers must retain verifiable records (receipts, travel logs).
Payments must reflect necessary and average costs to qualify as true reimbursements.
Compliance Checklist
Pay only collective agreement-conforming rates.
Archive all receipts unless flat rates apply.
Review flat rates annually.
Reclassify excessive allowances as taxable.
Disclose all allowances transparently on payslips.