Entrepreneurs who go on business or working trips can deduct all or part of such expenses when calculating income tax. The business trip must be related to entrepreneurial activity in order to generate income, maintain or ensure a source of income.

Travel expenses include the cost of tickets based on bills, invoices or receipts. If a personal car was used during a business trip, 20% of the expenses for its use can be taken into account when calculating personal income tax.

Mileage accounting. You can deduct 100% of VAT on expenses related to the use of a car, provided that you use the car exclusively for business purposes and submit form VAT-26 to the tax office. If you do not keep track of the mileage and use your car for mixed purposes — both business and personal — you will deduct 50% of the tax.

An entrepreneur is entitled to compensation for meals in the amount of daily allowance, as an employee according to the decree (Rozporządzenie Ministra Pracy I Polityki Społecznej w sprawie należności przysługujących pracownikowi zatrudnionemu w państwowej lub samorządowej jednostce sfery budżetowej z tytułu podróży służbowej).

Daily allowance are included in expenses subject to documentation of an internal document, which must indicate: first and last name, purpose of the trip, name of the destination, number of hours and days spent on the business trip (date and time of departure and return), rate and amount of per diems.

Accommodation expenses are paid on the basis of an invoice or receipt, i.e. in full.

If local transport is used on a business trip, then expenses are accepted in the actual amount indicated in the travel or other document.

An entrepreneur can deduct other expenses related to entrepreneurial activity on a business trip, for example: purchasing tickets to fairs, exhibitions.

If the entrepreneur's form of taxation is a registered income or ryczałt, then business trip expenses are not deductible.

VAT deduction for travel expenses. VAT for business trip expenses is paid and deductible on a general basis. However, VAT on expenses for food and accommodation services is not deductible. At the same time, such non-deductible VAT is included in expenses taken into account for income tax.

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