TABLE OF CONTENTS
This article outlines the key policies and procedures for expense reimbursement in Italy, including travel, documentation, taxability, and compliance considerations.
Invoicing & Documentation
In order to claim reimbursement for any business expenses, receipts are required. The following information should be included on the receipts to ensure that they meet the necessary requirements for reimbursement:
Date of the transaction: This helps to confirm the timing of the expense.
Details of the expense: A clear description of what was purchased (e.g., meal, transport, lodging).
Amount paid: The total amount of the expense, including any taxes or service charges.
Payment method: It is crucial to include the payment method (e.g., debit card, credit card, bank transfer) on the receipt to verify that it was made through a traceable method. Cash payments will not be eligible for reimbursement.
Invoices are not always mandatory, but if you request one, they must list Remote People as the customer:
Remote People Global Technology Italy SRL
VAT Number and Tax Code
12983850962
Tax-Free Reimbursable Expenses
All work-related expenses supported by receipts can be reimbursed tax-free.
Reimbursable items may include:
Travel expenses
Costs incurred during regular work activities
Business Trip Expenses
From 2025, the reimbursement of expenses incurred during a business trip for boarding, lodging, and transport (such as taxi or hire car with a driver) will only be tax-free if the payment is made using traceable payment methods. These methods include:
Debit cards
Credit cards
Prepaid cards
Bank transfers
Bank checks
This means that any business-related expenses paid in cash will not be eligible for tax-free reimbursement. To ensure your expenses are reimbursed tax-free, always use traceable methods for payments during business trips.
Per Diem Rates
Per diems are tax-exempt up to:
€46.48/day for domestic travel
€77.47/day for international travel
According to the applicable CCNL:
Employees (excluding sales operators) are entitled to:
Reimbursement of travel and luggage transport expenses
Reimbursement of postal and other work-related expenses
A daily allowance of at least twice the daily wage
Reduced by one-third if no overnight stay
Reduced by 10% for assignments over one month or frequent travel
Alternatively, reimbursement of actual food and lodging costs
Short trips to nearby locations are reimbursed based on actual travel and lodging costs.
Entertainment and Gift Expenses
Starting from 2025, entertainment expenses (e.g., meals, events) and gifts will only be deductible for business income and IRAP tax purposes if they are paid using traceable payment methods such as:
Debit cards
Credit cards
Prepaid cards
Bank transfers
Bank checks
However, expenses related to advertising or sponsorship will continue to be deductible, even if paid in cash. That said, we recommend using traceable payment methods for these expenses as well, to avoid any complications and ensure transparency.
Representation Expenses (e.g., client dinners, events)
Partially deductibleif:
Promotional or PR-related
Properly documented (receipts/invoices with purpose and recipient)
Deductibility varies by company revenue (0.4%–1.5%)
VAT is generally non-deductible, except for low-value items
Client Gifts
Under €50: VAT deductible, cost fully deductible
Over €50: Deductible as representation expense, VAT not deductible
Team-Building Events
Considered personnel expenses
Generally fully deductible if related to company activities
VAT deductibility depends on expense type (e.g., meals, transport)
Health & Wellness Expenses
Medical expenses: Covered through Fondo Est or Qu.As, depending on employee level
Other wellness expenses(e.g., gym, therapy, yoga):
Only reimbursable tax-free if included in a corporate welfare plan
Without a welfare plan, these are subject to income tax and social security contributions
Travel & Mileage
Mileage Reimbursement
Italy does not have a universal mileage reimbursement rate. The most commonly used method is based on the ACI (Automobile Club d'Italia) tables, which calculate reimbursement amounts based on the type of vehicle used. These rates are updated daily and reflect fuel costs and other variables.
Alternatively, a fixed cost per kilometer may be used, depending on specific agreements with the employer.
Parking Tickets and Tolls
Parking and toll expenses must be submitted separately from mileage logs. Reimbursement requires copies of the original receipts.