How Can Employees Expense Business Expenses for Reimbursement in Italy?

In Italy, employees who incur business-related expenses during business trips can be reimbursed for costs such as boarding, lodging, transportation, entertainment, and gifts. However, to ensure that these expenses are reimbursed and remain tax-free, there are important guidelines to follow, especially regarding the payment method used.

Reimbursement of Business Trip Expenses

From 2025, the reimbursement of expenses incurred during a business trip for boarding, lodging, and transport (such as taxi or hire car with a driver) will only be tax-free if the payment is made using traceable payment methods. These methods include:

  • Debit cards
  • Credit cards
  • Prepaid cards
  • Bank transfers
  • Bank checks

This means that any business-related expenses paid in cash will not be eligible for tax-free reimbursement. To ensure your expenses are reimbursed tax-free, always use traceable methods for payments during business trips.


Entertainment Expenses as of 2025

Starting from 2025, entertainment expenses (e.g., meals, events) and gifts will only be deductible for business income and IRAP tax purposes if they are paid using traceable payment methods such as:

  • Debit cards
  • Credit cards
  • Prepaid cards
  • Bank transfers
  • Bank checks

However, expenses related to advertising or sponsorship will continue to be deductible, even if paid in cash. That said, we recommend using traceable payment methods for these expenses as well, to avoid any complications and ensure transparency.


Receipts and Documentation

In order to claim reimbursement for any business expenses, receipts are required. The following information should be included on the receipts to ensure that they meet the necessary requirements for reimbursement:

  • Date of the transaction: This helps to confirm the timing of the expense.
  • Details of the expense: A clear description of what was purchased (e.g., meal, transport, lodging).
  • Amount paid: The total amount of the expense, including any taxes or service charges.
  • Payment method: It is crucial to include the payment method (e.g., debit card, credit card, bank transfer) on the receipt to verify that it was made through a traceable method. Cash payments will not be eligible for reimbursement.


If the expense is related to entertainment or gifts, it is especially important that the payment is traceable, as these types of expenses are subject to stricter tax deduction rules starting from 2025.

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