When can a trip abroad be a tax deductible expense?

Our experience shows that many entrepreneurs are still unsure of the circumstances in which a foreign trip can be considered a deductible expense. Since international travel is expensive, and more and more people are required to travel due to the nature of their work, we decided to provide a comprehensive discussion of this topic. We hope this article will dispel some practical doubts.

What characteristics must an expense have in order to be recognized as a tax-deductible cost?

We've covered the topic of tax-deductible costs numerous times on our blog. This is hardly surprising – tax authorities often enter into disputes with entrepreneurs precisely over whether a given expense should reduce the tax base. In our opinion, one of the reasons for this phenomenon is the rather unfortunate definition of cost. The Personal Income Tax Act defines tax-deductible costs in Article 22. This provision reads:

"Costs of obtaining revenues are costs incurred to earn revenues or to maintain or secure a source of revenues, with the exception of the costs listed in Article 23."

Article 23 of the Act, in turn, contains a list of exclusions, such as alcohol, entertainment expenses, fines, and penalties. In practice, however, the taxpayer must assess whether the expense is definitive, incurred to generate income (or to maintain or secure a source of income), and whether it is related to the business activity. The regulations do not require taxpayers to demonstrate rationality or thriftiness behind the purchase. In practice, however, such circumstances are sometimes taken into account when determining whether the line between business and personal expenses has been crossed.

Can expenses related to traveling abroad be recognized as tax-deductible expenses?

As a rule, yesHowever, it is necessary to meet the requirements of the definition mentioned above. In addition to purpose, connection with income, and definitive nature, it is also necessary to properly document the incurred expenses and ensure that the costs are not predominantly personal in nature. In practice, this means that Not all travel expenses will be tax deductible, even if accommodation or airline tickets have this status. A lot also depends on the specifics of the trip and your activity.

Which trips can be considered business trips and which ones cannot?

Our consulting practice shows that there is a specific group of trips that, in principle, raise no concerns with tax authorities. Similarly, there are also specific schemes that should almost certainly be considered risky. Here are a few:

Participation in foreign sales talks, trade fairs or conferences

A typical, and in our opinion, relatively safe, example of a business trip abroad is a trip to another country to participate in an industry event or to conduct business negotiations with a contractor, including a potential one. Importantly, negotiations do not necessarily end in success. It is standard business practice to engage in sales or purchasing talks that do not end with a transaction.

Trips of influencers, YouTubers, bloggers, and internet creators

In the influencer's business, the lines between work and private life are blurred – after all, reporting on their daily lives is often part of their professional activity. While for a software developer, a visit to an amusement park will almost certainly be consumption and difficult to establish a connection to income, a YouTuber might record a new episode for their channel there. On the other hand, as with negotiations, not every trip is necessarily successful, for example, in the form of a video series. It's worth noting, however, that in the absence of publications about the trip or the attraction, demonstrating a connection to income becomes significantly more difficult.

So how can you tell if a given trip is a cost for the influencer? In our assessment, we should examine criteria such as:

• The relationship between the travel topic and the channel or blog profile,
• Monetization of the channel,
• The existence of advertising, affiliation or sponsorship agreements,
• Existence of evidence of the professional nature of the trip, e.g. in the form of scenarios and schedules.

Properly documented and justifiable influencer trips can certainly be considered tax-deductible, as confirmed by both tax authorities and courts. It is worth citing the Supreme Administrative Court's judgment of May 14, 2021, II FSK 1633/19, and the ruling of February 26, 2025, II FSK 711/22.

However, the need to demonstrate the rationality of the trip is debatable. Although such an assessment criterion is not explicitly stipulated in the Act, it is possible that an exceptionally expensive trip by a novice influencer will generate more controversy than a week-long trip by a celebrity to an event within their industry.

Going for inspiration is unlikely to be expensive

A noteworthy precedent in this case is the interpretation of May 7, 2025, file reference no. 0112-KDIL2-2.4011.213.2025.2.WSIn the application, the taxpayer, who runs a training and consulting business, indicated that his planned exotic trip would help him acquire unique knowledge of original agricultural techniques in the subtropical climate of the Southern Hemisphere.

According to the tax authority, the purchase of a typical tourist package, during which information is provided by guides, constitutes a personal expense. In our opinion, for such a foreign trip to truly constitute a tax deductible expense, it would be necessary to demonstrate a closer connection to the income, for example, through meetings with local entrepreneurs. Sightseeing trips and diving also worked to the taxpayer's detriment.

What to do if the trip is both business and private?

It shouldn't surprise anyone that long-distance business trips bring a desire to explore local attractions. Trips to distant destinations like Singapore or New York aren't common, and some business trips leave a lot of free time. In such a situation, the nature of the trip changes somewhat, although it can still be classified as a tax-deductible expense.

The Personal Income Tax Act does not provide a specific method for accounting for such expenses. In our opinion, the safest solution is to apply a proportion that accurately reflects the share of personal expenses in the trip. Importantly, however, if a given expense can be clearly separated (e.g., accommodation costs for a spouse and children, costs of tourist attractions), it should be excluded from the proportion.

An interesting problem arises when extending your stay doesn't result in increased travel costs – an example would be purchasing a cheaper return ticket in exchange for a few extra days of stay at the destination. While the interpretation practice of the Director of National Tax Information (KIS) doesn't provide a universal solution to this problem, we believe that full ticket settlement could be maintained if the predominant reason for travel was business, and the private extension of your stay didn't increase travel costs at all – as tax authorities stated in interpretations issued years ago.

In the case of a hotel, costs should be allocated to individual days and participants of the trip. Overnight stays for family members or private extensions of stay can never be considered expenses. Those related to achieving business goals are absolutely acceptable. However, let us emphasize that our position on airline tickets is primarily a guess, and if in doubt, it is definitely worth considering submitting a request for an interpretation. However, this involves a fee and the need to devote time to preparing such a document. In practice, therefore, especially for small amounts, it is usually not worth taking the risk associated with unclear qualification of a given expense.

What can be an expense as part of a business trip?

The list of expenses that courts and tax authorities have previously accepted has been very broad. It is assumed that, provided other requirements are met, expenses may include:

• Travel expenses – plane, train, bus and ferry tickets, car fuel,
• Taxi and local transport,
• Car rental, fuel, tolls, parking fees,
• Accommodation for the business part of the trip,
• Fees for participation in conferences, fairs, training,
• Rental of coworking space, necessary equipment,
• Visas, administrative fees, passport costs, vaccination costs,
• Services of a translator, industry guide (rather than a tourist guide),
• Travel costs of an associate or employee – to the extent that he or she performs tasks for the entrepreneur during the trip.

The costs will not include:

• Private attractions,
• Souvenirs
• Alcohol,
• Eating in restaurants – except when the meal is a work meeting or negotiation.

Per diem allowances during an entrepreneur's business trip

Contrary to popular belief, sole proprietors (SOLEs) can also settle per diem allowances, although these are settled under slightly different rules than for employees. The cost recorded in the KPiR is the amount calculated according to the rates applicable to public sector employees, not the actual expense. In 2026, the daily flat rate is PLN 45 per day for domestic trips exceeding 12 hours, while the amount of per diem allowances abroad depends on the country of residence. Typically, it is about 50 euros per dayLet us emphasize – the entrepreneur does not settle the actual expenses for food and instead, a lump sum amount is recorded in the income and expenditure book to represent these costs.

Complimentation is somewhat complicated by free meals distributed, for example, as part of conferences. For international travel, a 15% per diem is deducted for free breakfasts, and a 30% per diem is deducted for free lunches and dinners.

The duration of travel abroad for the purposes of allowances is counted from the moment of leaving the country (e.g. taking off from an airport in Poland) until the moment of returning to Poland (e.g. landing at the first airport in the territory of the Republic of Poland).

It is worth noting that dinner with a contractor can be settled as a cost of obtaining income regardless of the per diem – it is a form of organizing a business meeting.

Accommodation during business trips

As a rule, expenses incurred for renting a hotel room or apartment are settled at their actual cost, not on a lump sum basis, as is the case with meals. As with other expenses, it is necessary to demonstrate all the necessary evidence (connection to the business, lack of personal nature of the expense, its finality). Although there is no regulation prohibiting the selection of particularly expensive hotels in this case, in our opinion, choosing an exceptionally expensive option may constitute a so-called "representation expense" and thus deprive the right to a reduced tax base. According to the prevailing view, excessive expenses, incurred primarily for the purpose of image building and impressing clients, are risky. A night in a five-star facility is not definitive, but in the event of a criminal investigation, the authorities will be particularly keen to examine the economic justification for such an expense.

VAT and foreign travel

For the sake of order, let us add that, as a rule, in the case of a physical purchase of goods or services subject to VAT in an EU country other than Poland, the deduction rules are completely different than in the case of the so-called import of services. In the case of purchasing, for example, fuel for a car, tickets for a conference or a SIM card with mobile internet, for which tax was charged, it is necessary to submit an electronic application VAT-REFThis application, submitted via the e-Tax Office, is forwarded to the tax authorities of the country where the tax was assessed. Therefore, the decision on the refund is made by, for example, the Spanish or Swedish tax office, not the Polish tax office.

The refund conditions are generally quite similar to those found in Polish VAT law, although there are some differences. To recover the funds, the entrepreneur must demonstrate that:

• Is a VAT payer performing taxable activities,
• There is no registered office or permanent establishment in the country of refund,
• There is no obligation to register for VAT locally,
• Has a correctly issued invoice,
• The purchase was related to taxable activities.

Applications are submitted separately for each country. The deadline is September 30 of the following year, and the minimum amount requested is €50 for the entire year or a final period of less than three months, and €400 for periods of less than one year but at least three months.

It's worth noting, however, that the process of recovering VAT abroad requires the active participation of the taxpayer and often requires the submission of extensive explanations. While such action is fully justified for large amounts, recovering €50 or €100 in VAT may not make economic sense. It's also worth remembering that EU countries retain the right to introduce restrictions on the right to deduct VAT, particularly in the case of fuel, cars, catering, and accommodation. Such provisions are also present in Polish law.

Can I take an employee or colleague on a business trip?

In business practice, it's common to travel abroad with a support person. This person might be an assistant, a decision-maker within the organization, or an employee fluent in a foreign language. However, the decision to bring a colleague along carries several consequences.

While financing a business trip generally does not generate income for the employee, if a tourist element is present, the employee may receive a so-called gratuitous benefit. Taking an employee's spouse or children, upgrading accommodations at the employee's request, or when the trip is intended for motivation and its connection to the employer's interests is remote or difficult to demonstrate will be treated similarly.

In the opinion of BTTP, when assessing the risk of income from a free benefit, the assessment criteria used by the Constitutional Tribunal in its judgment of 8 July 2014, K 7/13, should be applied first of all:

• Fulfillment of the benefit with the employee's consent,
• The primacy of the employee's interest, not the employer's,
• Creation of tangible benefits for the employee,
• Possibility to assign benefits to a specific person.

All these elements should occur together.

Therefore, as long as an employee travels abroad on business to represent their employer and not for relaxation, the trip itself is tax-neutral for them. For the employer, the expenses associated with organizing the employee's business trip are tax-deductible.

Business trips on B2B

With the popularization of so-called B2B contracts, entrepreneurs began to raise many doubts about how business trips of colleagues should be treated and accounted for.

The starting point for this issue should be the fact that In the case of B2B contracts, there is no mention of so-called delegations. This legal construct is a labor law institution and, as such, should not be associated with contracts – neither formally (through the use of this term in contracts) nor in practice. The absence of delegation does not mean that the specific nature of the contract cannot oblige the entrepreneur to provide services or undertake business trips abroad.

Furthermore, the contract concluded between entrepreneurs should clearly stipulate who is responsible for the costs associated with organizing such travel – generally, this should be the service provider (contractor). The remuneration resulting from the contract should be calculated to include expenses related to business travel. Different arrangements may be justified, but they may indicate that the B2B contract is, in fact, an employment relationship.

Business trips of members of the company's management board

Business trips can also be considered a CIT expense – companies must also send their representatives on business trips abroad. In this case, due to the separate nature of companies and their associated individuals, the tax treatment is much closer to that of employee travel. Consequently, if the trip is partially private, a management board member, partner, proxy, or other person acting on behalf of the company may receive income from the gratuitous service.

It's also worth noting that a trip unrelated to the company's operations, such as a vacation trip for the CEO, is not a tax-deductible expense for the company. Foreign trips by individuals associated with the company don't necessarily have to result in direct income, but as with other tax-deductible expenses, this connection must be demonstrable. Consequently, a reasonably planned trip for employees of a legal entity is fully permissible under current interpretation practice.

The final risk entrepreneurs taking advantage of the Estonian corporate income tax (CIT) should be aware of is the recognition of an expense as a so-called hidden profit. This also requires payment of tax and, worse still, often complicates settlements. Of course, properly documented business-related trips are not a problem. However, if the trip is considered private or recreational, the risk of disclosing hidden profits is very real.

Is a sponsored trip income?

An interesting issue is the tax classification of trips (mainly influencer trips) financed by advertisers, sponsors, or travel service providers. As with incentive trips, in the case of barter collaborations, the creator receives income on similar terms as in the case of monetary exchange.

The current interpretation practice of the Director of the National Tax Information (KIS) leaves no doubt – providing flights, accommodation, or participation in a trip in exchange for specific publications constitutes payment. The transaction is barter in nature, but this does not mean neither a lack of income nor a lack of VAT.

Unfortunately, there are exceptions to this rule. A stay at a luxury hotel as a gift for a long-term relationship, in return for which only a short Instagram reel will be created, may not, in practice, constitute equivalent consideration. If there is an imbalance between the benefits provided by both parties, a so-called "sweat equity" may arise. income from unpaid or partially paid servicesThis, in turn, slightly changes the rules for settling such benefits – sometimes for the better, sometimes not. In practice, the parties to a transaction should always assess whether the value of advertising in the form of online publications is comparable to the value of the service received.

You can find more about barter settlement in our article entitled Tax-Free Barter? This Is the Most Common Influencer Mistake – BTTP.

How to document expenses related to business trips?

Conditions of Polish economic turnover, especially after widespread introduction of KSeF for small and medium-sized companies, have accustomed us to standardized invoice appearance and high standards of recordkeeping. Unfortunately, in many countries, especially outside the European Union, the situation is much worse.

As we wrote in the article about import of advertising services on VAT grounds, An invoice from a foreign contractor doesn't necessarily have to include all the elements required for Polish documents. As a result, a document issued by an American taxpayer, which will almost certainly contain only minimal identifying information about the issuer, will likely be eligible for expense recognition. However, we strongly recommend that every expense be documented in some form, whether in paper or electronic form. The easier it is to prove that the expense was incurred by the person participating in the trip, the better. It's important to remember that the taxpayer must be able to demonstrate:

• Who made the transaction,
• What was the purchase about?
• When it was done,
• How much was the price,
• Who bore its economic burden.

In our opinion, neither the Personal Income Tax Act nor the Corporate Income Tax Act require all this information to be included in a single document. Therefore, if the invoice does not clearly indicate the parties, the taxpayer should prepare separate evidence—for example, a booking confirmation or an email.

Demonstrating the business nature of a trip remains a separate issue. Tax or accounting regulations do not mandate a specific format for such records, but in our opinion, it would definitely be a good idea to prepare a rough note containing information about the contractors the entrepreneur met, the names of the events they attended, and the business purpose of the trip. Elaborations are not necessary – the goal is simply to ensure that, in the event of an audit, the decision to record expenses for such a trip can be explained in a matter of minutes, not hours.

Summary

As you can see, business trips, especially international ones, pose several challenges, both in terms of tax law and accounting. If you have any questions about how to account for your trips abroad to avoid problems with the tax authorities, please contact us. We'll be happy to help.