What Expenses Cannot Be Added as Travel Expenses for Business Trips?

Expenses that cannot be added as travel expenses for business trips

When it comes to business trips, certain expenses cannot be classified as travel expenses or deducted for tax purposes. These are typically personal or non-business-related expenses. Below are some examples:

Personal Expenses:

- Leisure Activities: Costs related to personal leisure activities, such as sightseeing tours, personal entertainment, or expenses for family members accompanying the traveler.
- Personal Shopping: Any non-business-related purchases made during the trip.

Excessive or Unreasonable Expenses:

- Luxury Accommodations: Staying in a luxury hotel when a more modest accommodation would suffice.
- Extravagant Dining: High-end meals or extravagant dining costs.

Fines and Penalties:

- Traffic Tickets: Any fines or penalties incurred during the trip, such as traffic tickets or penalties for missed flights, are not deductible as business expenses.

Alcohol and Tobacco:

- Non-Deductible Purchases: The purchase of alcohol or tobacco products is generally not deductible as a business travel expense.

Gifts and Souvenirs:

- Personal Items: Personal gifts, souvenirs, or other non-business-related items purchased during the trip.

Extended Stay or Vacation:

- Personal Extensions: If an employee extends their stay beyond the business trip for personal reasons (e.g., to take a vacation), the additional accommodation and related costs cannot be claimed as travel expenses.

Non-Employee Travel:

- Unrelated Travelers: Travel expenses for individuals who are not part of the company (such as spouses, family members, or friends).

Commuting Expenses:

- Routine Commuting: Routine commuting expenses between the employee’s home and their usual place of work are not considered travel expenses and are not deductible.

Non-Business-Related Activities:

- Unrelated Activities: Costs related to activities that do not have a clear business purpose or are not directly related to the business objectives of the trip.

Important Reminder:

To deduct business travel expenses, you must keep proper documentation and upload it to the dashboard. This includes receipts, invoices, and travel itineraries, demonstrating that the expenses are directly related to the business purpose of the trip.

By adhering to these guidelines, you can ensure that your travel expense claims are accurate and compliant with Estonian tax laws. For more detailed information, please check this article: Can I claim travel expenses for business trips, and How?.

Updated on: 02/08/2024