Travel Policy Template for Germany

A Travel Policy sets clear rules for business trips and outlines how employees should handle travel expenses, following German tax and labor laws. It covers everything from booking flights and hotels to claiming reimbursements, helping companies maintain compliance with local regulations like the German Income Tax Act (EStG).

Beyond basic rules, these policies protect both employers and staff by defining daily allowances (Tagespauschalen), mileage rates, and documentation requirements. They help prevent tax issues, ensure fair treatment, and create a standardized approach to business travel across the organization. German companies often include specific provisions for international travel within the EU and guidance on using corporate credit cards.

Companies need a Travel Policy when employees start taking regular business trips, especially across German state lines or internationally. This becomes crucial as your team grows beyond 10 traveling employees, making informal arrangements too risky and time-consuming to manage individually.

The right time to implement a Travel Policy is before tax audits or expense disputes arise. German businesses with multiple offices or client sites particularly benefit from having clear rules ready when opening new locations or expanding sales territories. It's essential for organizations transitioning from local to national operations, or when dealing with frequent EU cross-border travel.

• Standard Travel Policies focus on domestic business travel within Germany, covering basic expense limits and documentation requirements
• International Travel Policies include additional sections on EU and non-EU travel, visa requirements, and country-specific allowances
• Department-Specific Policies customize rules for different business units, like sales teams or executives, with varying expense thresholds
• Digital-First Policies emphasize online booking tools, mobile expense reporting, and electronic receipts management
• Sustainability-Focused Policies include green travel options, CO2 tracking, and preferences for rail over air travel within Germany

• HR Departments: Create and maintain the Travel Policy, ensuring it aligns with German labor laws and company culture
• Finance Teams: Oversee expense limits, reimbursement processes, and tax compliance aspects
• Traveling Employees: Follow policy guidelines for booking, spending limits, and expense documentation
• Line Managers: Approve travel requests and expenses according to policy thresholds
• Legal Department: Reviews policy updates to ensure compliance with German tax and labor regulations
• Works Council: Provides input and approval on policy changes affecting employee rights and responsibilities

• Company Profile: Gather details about business locations, typical travel patterns, and number of traveling employees
• Budget Framework: Determine expense limits for different employee levels and travel categories
• Booking Process: Define preferred travel providers, booking tools, and approval workflows
• Documentation Rules: List required receipts and forms based on German tax regulations
• Legal Requirements: Review current German per diem rates and mileage allowances
• Works Council Input: Consult employee representatives on policy terms
• Digital Integration: Plan how the policy connects with expense management systems

• Scope Definition: Clear statement of which employees and travel types the policy covers
• Expense Categories: Detailed breakdown of allowable expenses aligned with German tax law
• Per Diem Rates: Current domestic and international daily allowances (Verpflegungsmehraufwendungen)
• Documentation Rules: Required receipts and forms for tax compliance
• Approval Process: Clear hierarchy and thresholds for travel authorization
• Data Protection: GDPR-compliant handling of employee travel information
• Works Council Rights: Reference to employee representation involvement
• Amendment Process: Procedures for policy updates and communication

While a Travel Policy and an Expense Policy may seem similar, they serve distinct purposes in German business operations. A Travel Policy specifically focuses on business trip regulations, while an Expense Policy covers all types of business-related spending.

• Scope of Coverage: Travel Policies exclusively address journey-related matters like transportation booking, accommodations, and per diems. Expense Policies cover a broader range including office supplies, client entertainment, and general procurement.
• Tax Implications: Travel Policies align with specific German tax regulations for business travel (Reisekostenrecht), while Expense Policies follow general business expense deduction rules.
• Approval Processes: Travel Policies typically require pre-trip authorizations and include detailed booking procedures. Expense Policies focus more on post-purchase documentation and reimbursement workflows.
• Compliance Focus: Travel Policies emphasize duty of care and travel safety requirements, while Expense Policies concentrate on financial controls and budget management.