Taxi ride included in company expenses - what, how and why?
- Damian Brzeski
- 1 day ago
- 8 min read
Throw a taxi receipt into the company's expenses? It sounds simple, but the tax office doesn't work on logic, only on regulations. Will your ride to a client meeting pass inspection? Or will an innocent ticket from a parking meter become the final nail in the accounting coffin?
Check out the three conditions you must meet to avoid falling into a tax trap – and learn about the most common mistakes that could cost you more than the trip itself.
When can you include a taxi ride in your company expenses?
Calculating the cost of a taxi ride is not as straightforward as it may seem. Before you file your receipt away, make sure you meet three key criteria . Without them, sorry, the tax office won't swallow it.
Condition No. 1: Relevance to the business
You must have a specific and legitimate business purpose . The trip must directly benefit your business – that is, help you earn or maintain income.
Typical situations include:
travel to a meeting with a client,
transport of materials for the order,
travel to training or trade fairs,
emergency access to the office when the car breaks down.
Real-life example: You drive from the office to the airport to pick up your partner from abroad – OK, you have an expense. But an evening trip to the cinema? Forget it.
What about companies? In companies (e.g. limited liability companies or limited partnerships) settling taxi rides is also possible, but requires greater documentation discipline.
The cost must be clearly related to the company’s activities , and the travel must involve an authorized person – e.g. a board member, employee or proxy.
It is worth having a business trip or travel order , as well as an accounting document with the company details.
If the course is paid for by a partner or board member from private funds , the company may reimburse him for this cost, but this must be properly documented, otherwise it may result in taxable income.
The Supreme Administrative Court in its judgment of 19 November 2024 (II FSK 230/22) ruled that the reimbursement of taxi costs to an employee - even for business purposes - may be considered his income and subject to personal income tax. Therefore, companies should document the purpose of the trip well and take care of the formalities to avoid unnecessary tax consequences.
Condition No. 2: Actual incurrence of the expense
That means: you pay, not someone else . If the bill was paid by the contractor, and you only switched – you will not settle it.
Condition No. 3: Proper documentation
And here's where it gets interesting. The regulations clearly state: you must have an accounting document that meets the requirements.
What works?
VAT invoice – required if the course cost more than PLN 450 net,
A receipt with your company's Tax Identification Number (NIP) - this will be enough if the cost is up to PLN 450,
Bulk invoice – once a month, for multiple trips, but with a full list of routes and dates.
New from 2025: The receipt may have a QR code – this will make it easy to check its authenticity. And the tax office too
What documents are needed to settle taxi costs?
Do you collect receipts for taxis? Great – but the printout from the fiscal printer is not everything. To ensure that the tax office has nothing to complain about, you need to know which document will work when – and what to do if the driver does not yet understand new technologies.
Receipt without NIP – watch out for this trap
For several years now, the rule has been in force: a receipt without the buyer's NIP is not enough to record the expense. Exceptions? Only in three situations:
Refueling at a gas station,
Motorway toll,
Minor expenses up to PLN 50 (but a taxi is not one of them).
That is: if the driver did not enter the company's Tax Identification Number on the receipt – there is no cost.
It is worth knowing: In practice, many drivers still use older cash registers that do not have the function of entering the buyer's Tax Identification Number .
This is because, despite the obligation to use online cash registers from 1 July 2021, there are no clear regulations as to the final date for their physical replacement , especially if the old cash register is still operational.
But there is light at the end of the tunnel – more and more taxi drivers are replacing their equipment with new , often completely virtual (e.g. mobile applications). And there, adding a Tax Identification Number is no longer a problem.
If the driver continues to use an outdated cash register, he or she may issue:
paper bill – yes, manually,
VAT invoice – it is best to ask for it straight away.
What must a valid invoice have?
For everything to be in order, your taxi invoice should include:
date and place of issue,
carrier details: name, tax identification number,
description of the service (e.g. route, time, purpose),
the appropriate VAT rate – usually 8% (or 4% if the driver is on a flat-rate basis),
driver's signature or stamp.
From 2024, an electronic invoice must have a qualified electronic signature. Some applications already handle this automatically. Just remember that an electronic invoice is not the same as a PDF invoice.
If the ride costs less than PLN 450, a receipt with a Tax Identification Number will suffice. However, it doesn't hurt to write on the back what the ride was for - it always makes a good impression in the event of an inspection.
How to settle VAT on taxi services?
This part is particularly important for taxi drivers who run their own business (JDG). They must decide on the principles on which they will settle VAT on their transport services.
If you are a taxi customer and just want to include the invoice in the costs – don't worry, it is not up to you to choose the rate or the method of settling VAT. You only settle the invoice with the rate that was issued to you.
Okay, the documents are in order, the business purpose is clear – but what does it look like from the VAT perspective if you are on the other side – behind the wheel?
General rules - 8% VAT rate
This is the classic billing model:
the standard VAT rate of 8% applies,
you can deduct 50% VAT from fuel and spare parts,
you must submit JPK_V7 declarations every month.
Example: Rate for PLN 300 net = PLN 24 VAT (8%), total PLN 324 gross.
For companies that regularly settle VAT, this is usually the best choice.
Flat rate - 4% VAT
This is a simplified option, but with limitations:
rate only 4%,
no right to deduct input VAT,
requires prior VAT-26 notification.
This option is often chosen by small entrepreneurs or those who are not active VAT payers.
When is what more profitable?
If your company uses full VAT and you often use a taxi – go for 8%. On the other hand, the 4% flat rate is an option mainly for those who want to simplify matters as much as possible and do not deduct VAT on a daily basis.
It is also worth remembering that from 2025, the JPK_V7M declaration must indicate the percentage division of input VAT between taxable and exempt activities. This means that the correct choice of taxation form is even more important.
The most common mistakes when settling taxi rides
Even if you have good intentions and solid documentation, it’s easy to make mistakes. And the taxman – being the taxman he is – likes to nitpick. Check to see if you’re making any of these classics:
No description of the destination = crap
A receipt with a tax identification number is not everything. You must clearly indicate why this course was related to your business . It is best to add it on the back:
"Travel to a meeting with client XYZ, 12/03/2025 – discussing the terms of the new contract."
Such a note may save you money in the event of an audit.
Inconsistent dates and documents
A typical error: an invoice from 10/04, an entry in the KPiR from 13/04, and the official note states that the trip was on… 17/04. This type of inconsistency arouses suspicion and is grist to the official's mill .
Abuse of collective invoices
A collective invoice is super convenient, but be careful – it must be:
issued once every 30 days,
with a detailed breakdown of individual trips.
No route list = cost rejected.
Incorrect VAT deduction
From 2025, you must precisely divide VAT between taxable and exempt activities. If you calculate it incorrectly or do not show it in JPK, you can get into trouble.
Remember: It's better to spend 5 more minutes typing up a note than an hour explaining yourself before an inspection.
Reimbursement of taxi fares to an employee – employer expense or employee income?
According to the judgment of the Supreme Administrative Court of 19 November 2024 (reference number II FSK 230/22) , the reimbursement of taxi travel costs to an employee may be recognised as his or her income subject to PIT taxation – even if the travel was related to official duties.
The court found that not every business trip is automatically tax neutral . If there is no formal delegation (e.g. a business trip order), and the employee uses a taxi, e.g. at work, the office may determine that it is a gratuitous service - and therefore taxable income .
📌 In short: If you reimburse an employee for a taxi ride and don't have the proper documentation, it can be treated as income . But with a well-documented business purpose, the ride should be considered a business expense, with no tax consequences for the employee.
What does this look like in practice?
The above guide was prepared based on the applicable tax law in Poland. All tips are consistent with the current requirements imposed by the tax office. But – and this is an important BUT – reality can be different from the textbook.
What is really happening?
In everyday accounting practice, many companies include receipts in their costs "as is" - without a tax identification number, without any special description, sometimes even without much thought. And what? Most often, nothing happens. The vast majority of tax offices turn a blind eye to this. Especially for small amounts and if the documents look "fair".
But...
All it takes is one overzealous official, one inspection, or new internal guidelines from above – and suddenly you’re in the dark… you know.
Because in Polish reality, an entrepreneur is not a partner, but a suspect ex officio . The principle of presumption of guilt still applies here, meaning that you – not the office – must prove that everything was in accordance with the law. This is a legacy of the Polish People's Republic, which is unfortunately still going strong.
Is it worth the risk?
If you have the opportunity, it is always best to follow the regulations as if you were preparing for an inspection tomorrow at 8 a.m. Even if you think they are absurd or exaggerated. Because when push comes to shove, there will be no excuse: "everyone does it."
In an office, as in an office – you will always be the one to blame. And if you get an official on a mission, even the smallest mistake can cost you time, nerves and money.
To sum up:
Receipts without NIP? In practice they often pass, but formally they are not OK.
Most offices look the other way... until they don't.
Rule #1: Don't count on luck. Better safe than sorry than to be blinded later.
Because in Poland, an entrepreneur rarely gets a credit of trust. So play it safe and be holier than god. Seriously...
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