Lump sum for accommodation - can it be included in the costs?

The expenses incurred by the entrepreneur for the lump sum for accommodation are tax costs, but this only applies to the lump sum paid to employees. How should such expenses be documented and why is the lump sum not available to the self-employed? We answer below.

What is an overnight lump sum?

For each overnight stay on a business trip, not documented by a bill or invoice, the employee is entitled to the so-called a lump sum. It is a fixed rate of 150% of the current diet, i.e. PLN 45. The employee is entitled to a lump sum for an overnight stay if the overnight stay lasted at least 6 hours between 9:00 p.m. and 7:00 a.m. The lump sum is due to the employee in a situation where:

• the employer does not provide accommodation during the trip,
• the employee has no bills or invoices stating the amount of costs incurred for accommodation.

If the employee presents the employer with invoices, bills or other documents proving that certain amounts have been incurred in connection with the accommodation, then the employee is entitled to reimbursement of the costs incurred in the amount stated in the bill or invoice. He is not entitled to an additional lump sum payment. The lump sum for accommodation is due only when the posted employee does not present documents confirming the amounts spent on accommodation.

The paid lump sum for each overnight stay for the employee constitutes the employer's tax deductible costs.

Lump sum for accommodation and business trips of entrepreneurs

However, the above does not apply to entrepreneurs on business trips. The owners of the company are not entitled to receive or pay themselves a lump sum. Thus, the lump sum for accommodation in this situation will not constitute tax deductible costs.

In the case of an entrepreneur's business trip, the invoices or bills are the basis for counting the expenses incurred for the accommodation. The expenses related to accommodation during a business trip documented in this way will constitute tax deductible costs in the amount specified on invoices or bills. In the case of an entrepreneur, there is no other option to settle expenses for accommodation.