Expense rules in Germany.
All BMF rules: MwSt rates, Verpflegungspauschale, €0.30/km mileage rate and VAT recovery via BZSt for your employees in Germany.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals (Bewirtung) | 19% | 70% reclaimable | 30% non-deductible (R 4.10 EStR) |
| Employee meals (Verpflegung) | 19% | 100% reclaimable | Covered by Verpflegungspauschale |
| Accommodation / hotel | 7% | 100% reclaimable | Reduced rate for lodging |
| Hotel breakfast | 19% | 100% reclaimable | Separate billing required |
| Business fuel | 19% | 100% reclaimable | Justified business use |
| Train / flight / DB | 7% / 19% | 100% reclaimable | DB Bahn 7% domestic |
| Taxi | 7% | 100% reclaimable | Receipt required > €250 |
| Client gifts | 19% | 100% reclaimable | Cap €50 net/recipient/year |
Verpflegungspauschale 24h
Full day rate (> 24h travel).
Verpflegungspauschale 8-24h
Half-day rate (8-24h or arrival/departure).
Retention
Receipts mandatory 10 years (AO §147).
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Car (PKW) | 0,30 €/km | Unlimited | Covers fuel + maintenance |
| Motorcycle / scooter | 0,20 €/km | Unlimited | BMF Kilometerpauschale |
| Mitfahrer (passenger) | +0,02 €/km | — | Per-passenger business supplement |
| Bicycle | 0,30 €/km | Unlimited | Aligned with car since 2014 |
Personal car
BMF Kilometerpauschale, no cap.
Pendlerpauschale
Home-to-work commute — different rate.
Logbook (Fahrtenbuch)
Date, destination, km, business purpose.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Germany — > 24h | 28 € | — | 28 € |
| Germany — 8-24h | 14 € | — | 14 € |
| Berlin (overnight) | 28 € | 120 € | 148 € |
| Munich / Frankfurt (overnight) | 28 € | 140 € | 168 € |
| Foreign — Paris | 58 € | 152 € | 210 € |
| Foreign — London | 62 € | 224 € | 286 € |
| Foreign — New York | 66 € | 282 € | 348 € |
| Foreign — Tokyo | 51 € | 146 € | 197 € |
Meal reduction
Breakfast included = -20%; lunch/dinner = -40% each.
3 months max
Allowance limited to 3 months at same location.
Foreign rates
Annual country table published by BMF.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| European Union (27) | 8th Directive (2008/9/EC) | 30 Sept. N+1 | BZSt online portal |
| France | Reciprocity | 30 Sept. N+1 | Via BZSt portal |
| United Kingdom | 13th Directive post-Brexit | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| DE MwSt for foreign cos | BZSt VAT refund | 30 June N+1 | Form USt 1 TN |
EU minimum threshold
Annual 8th Directive request.
DE minimum threshold
Minimum VAT for foreign company via BZSt.
Typical ROI
% expenses recovered for multi-country company.
Industrialize your Germany expenses with Illizeo.
MwSt 19%/7%, Verpflegungspauschale, Kilometerpauschale €0.30/km, BZSt VAT refund: all the BMF rules above are natively integrated into Illizeo.
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