This article explains how employees can request reimbursement for business‑related expenses in Kosovo, including mileage, travel costs, per diems, documentation requirements, and tax treatment. Proper authorization and documentation are required for reimbursements to remain non‑taxable.
1. Travel & Mileage (Private Vehicle Use)
Official Mileage Rate
Kosovo has a government‑set mileage rate commonly used by employers:
€0.30 per km – use of a private vehicle for business travel
When reimbursed at this rate and supported by documentation, mileage reimbursement is generally treated as non‑taxable.
Eligibility
Applies only to approved business travel
Commuting between home and the regular workplace is not reimbursable
Travel must be authorized in advance to qualify for tax‑free treatment
Mileage Log Requirement
Employees must submit a trip log including:
Date of travel
Business purpose
Start kilometre reading
End kilometre reading
Total kilometres driven
Mileage claimed must reflect actual business kilometres only.
2. Parking, Tolls & Road Charges
Parking fees, tolls, and road charges must be claimed separately
These costs are not included in the €0.30/km mileage rate
Receipts are mandatory
Expenses without receipts may be rejected or treated as taxable income.
3. Business Travel Authorization & Limits
Kosovo does not impose statutory caps on business travel spending. However, employers typically apply internal policies, which may include:
Maximum daily travel budgets
Rules for using private vehicles
Prior approval requirements
To remain reimbursable and non‑taxable, travel must be:
Business‑related
Reasonable
Properly documented
4. Transportation & Accommodation
The following expenses may be reimbursed when incurred for business purposes and supported by documentation:
Transportation
Air travel: Economy class expected unless otherwise approved
Taxi / ride‑share: Allowed with receipt and business justification
Bus / train: Tickets serve as valid documentation
Rental cars:Allowed with prior approval
Rental invoice required
Fuel must be supported by receipts
Accommodation
Hotel accommodation during business travel
Invoice or receipt required
International Travel
Must comply with Kosovo’s official per‑diem tables (see Section 7)
5. Invoicing & Documentation Requirements
To keep reimbursements non‑taxable and auditable, each expense must be supported by a receipt or invoice including:
Vendor name
Date
Amount
Description of goods or services
VAT breakdown (if applicable)
For invoices, listing the company name is recommended, though not strictly mandatory by law.
6. Common Tax‑Free Reimbursable Expenses
When properly documented and business‑related, the following are generally reimbursable and non‑taxable:
Mileage at €0.30/km
Airfare and other transportation
Hotel accommodation
Parking and tolls
Meals covered by per diem (not by actual meal receipts)
Business supplies
Training or certification fees related to work
Communication and internet costs while traveling
7. Per Diems (Daily Allowances)
Kosovo maintains official per‑diem tables for domestic and international travel.
Tax Treatment
Per diems paid within government rates are generally non‑taxable
Amounts exceeding official rates may become taxable income
Important Rules
Per diems are intended to cover meals and incidental expenses
Double reimbursement is not allowed:
You cannot claim a per diem and submit meal receipts for the same period
8. Entertainment, Gifts & Hospitality
Business Entertainment
Must be business‑related
Receipts are mandatory
Expenses must be reasonable
Gifts
Large or high‑value gifts may be treated as a taxable benefit
Alcohol and luxury gifts may be:
Non‑deductible for corporate tax purposes
Rejected for reimbursement
9. Non‑Reimbursable or Taxable Personal Expenses
The following are not considered business expenses in Kosovo and are generally:
Not reimbursable tax‑free
Treated as taxable benefits if reimbursed
Examples include:
Gym memberships
Yoga or fitness classes
Spa or wellness services
Personal medical expenses
10. VAT & Recordkeeping
VAT
Standard VAT rate: 18%
Reduced VAT rate: 8% (for certain goods/services)
VAT treatment follows normal Kosovo VAT rules
Record Retention
All expense documentation must be retained for at least 5 years
Payroll and Finance verify that:
Mileage and per‑diem rules are followed
Documentation is complete
If reimbursements do not meet requirements, amounts may be treated as taxable income.