Taxi travel settlement during business trips - a practical guide for companies and the self-employed

Business trips rarely happen without the cost of local travel. Taxis are convenient, but also an accounting challenge. How do you account for them? When can VAT be deducted and when do you have to pay PIT? Will a self-employed person account for a taxi the same way as an employee? Read this and get it over with.

1. Employee on business trip: how to legally recover taxi fare

2. Entrepreneur: how a self-employed person settles a taxi

3. Tax law seems complicated? here's a simplified version

Employee on business trip: how to legally recover taxi fare

Legal basis:

A business trip means that the employer must cover the employee's necessary travel costs (Article 77^5 of the Labor Code: "An employee performing official duties outside the location where the employer's registered office or permanent place of work is located is entitled to an allowance to cover costs related to a business trip.") Taxis are included in this - provided they are justified and documented.

The Regulation of the Minister of Labour and Social Policy of 29 January 2013 (Journal of Laws 2013, item 167, as amended) specifies the amounts of per diem allowances and the principles of cost reimbursement.

The flat rate for local travel is:

• PLN 9 per day for domestic business (i.e. 20% of the allowance of PLN 45),

• 10% foreign allowance (e.g. Germany: €4.90 from a €49 allowance).

If taxi costs exceed the flat-rate allowance, you can apply for a refund of the actual expenses, but the tax office will consider the excess as taxable income for the employee.

What about PIT and ZUS?

In accordance with Article 21, paragraph 1, item 16, letter a of the Personal Income Tax Act, "per diem allowances and other payments for the employee's business trip" are exempt from tax, but only within the limits set out in the regulation.

Refund to lump sum tax = exemption from PIT and ZUS .

Refund over the flat-rate amount = employee's income , added to salary, taxed and subject to contributions (unless a foreign delegation, where the exemption may be more extensive).

The judgment of the Supreme Administrative Court of 19 November 2024 (II FSK 230/22) confirms: "the reimbursement of taxi travel costs for business purposes constitutes the employee's income from the employment relationship."

Documentation: only with invoice

• Receipt without NIP = useless for VAT and costs,

• Receipt with company tax identification number up to PLN 450 = simplified invoice (Article 106e, paragraph 5, point 3 of the VAT Act),

• Best: invoice in the name of the company.

Additionally: settlement of the delegation (purpose, time, expenses, attachments).

VAT

• Taxi rides in Poland: VAT 8% (passenger transport service), deductible on the invoice.

• Foreign taxi: no deduction , VAT paid abroad is a company expense (unless recovered via VAT-REF).

Entrepreneur: how a self-employed person settles a taxi

What does the law say?

The Labor Code does not apply to sole proprietorships. Article 22 section 1 of the Personal Income Tax Act applies: "costs of obtaining income are costs incurred to achieve, maintain or secure a source of income."

Article 23 section 1 item 52 of the Personal Income Tax Act indicates that the costs do not include the value of allowances above the limits specified in the regulations for employees. The entrepreneur may therefore include the allowance, but only up to the amount provided for the employee.

Other costs (hotel, taxi, tickets): actual expenses + invoices .

VAT

• Taxi in Poland = VAT 8% , can be deducted on the invoice or receipt with NIP (Tax Identification Number) if the taxi driver was VAT registered.

• Taxi abroad = foreign VAT, not deductible in Poland.

Documentation

• VAT invoice or receipt with Tax Identification Number (up to PLN 450),

• Settlement of delegations (voluntary but helpful),

• Exchange rates: Average NBP rate on the day preceding the date of incurring the cost (Article 11a, paragraph 2 of the Personal Income Tax Act).

Practical note:

The entrepreneur is not entitled to lump sums for accommodation or travel. The exceptions are per diems , which can be booked despite the lack of receipts (up to a limit). Everything else requires a document.

Real life examples:

Jan - employee on domestic business trip (2 days, Kraków) :

• Taxi: 60 + 20 + 55 PLN = 135 PLN (receipt with NIP, invoice, receipt without NIP).

• Lump sum for travel: PLN 18.

• Refund of costs: PLN 135 – PLN 18 = PLN 117 of taxable income.

• The company deducts VAT from the first 2 documents (approx. PLN 6).

Anna - employee in Berlin (3 days) :

• Taxi: €92 (Berlin) + PLN 80 (Warsaw).

• Per diem: €147, travel allowance: €14.70.

• Excess costs: approx. PLN 437 = Anna's income (taxed).

Maria - self-employed, one-day domestic delegation :

• Per diem: PLN 22.50 (over 8 hours).

• PKP: PLN 120 (gross).

• Taxi: PLN 30 (receipt with NIP) + PLN 35 (receipt without NIP).

• The costs can give: 120 + 22.50 + 27.78 PLN = 170.28 PLN. The rest? Hard to justify.

What to remember

• Documentation is essential : without an invoice, no VAT and no cost.

• Employee : can get a lump sum refund without tax. Surplus = income.

• Entrepreneur : only settles what he actually spent and documented.

• Foreign delegation : VAT not deductible, but higher allowances and flat-rate payments.

• Taxi within the city of work : is not a business trip, the reimbursement may be taxable.

Taxi ride accounting may seem meticulous, but when done properly, it protects you from tax problems. The rule? Collect invoices, have a justification, and don't count on "a receipt being enough."

Tax law seems complicated? here's a simplified version

You don't have to be an accountant to figure this out. In short:

• If you take a taxi on a business trip , the company (or you as a company) can pay for it and include it in the costs.

• But! You must have an invoice or receipt with NIP (max. PLN 450).

• Employee? You can get a refund. But if the taxi cost more than the limit, the excess is taxed.

• Self-employed? You have more freedom. But zero invoice = zero cost.

• VAT? In Poland – yes, abroad – probably not.

That is: collect the papers, ask for the invoice, leave nothing to chance . You really don't need to know all the regulations to calculate the taxi correctly. Just stick to a few simple rules and have your papers in order.