TABLE OF CONTENTS

• Invoicing and Documentation
• Reimbursement and Taxability
  • Tax-Free Reimbursements 
  • Taxed expenses
  • Mixed Expenses
• Per Diem for Business trips
• VAT
• Travel and Mileage

This article outlines the policies and procedures for travel, mileage, invoicing, and reimbursement of business expenses for employees based in Switzerland. 

Invoicing and Documentation

For every reimbursement request, you must submit an Expense report and supporting documentation.

• Expense report must include the following:
  1. Date
  2. Description: clearly state what the expense is for. 
  3. Context: explain how the expense relates to your business activity.
  4. Amounts: If there's a mismatch between the expense amount and the invoice amount, explain the difference. 
  5. Conversion rate: If the invoice is in a different currency than your salary, indicate the conversion rate. 

  You can use the Expense report template attached in this article to include in your submissions.

For business trips, please submit a separate report for each trip. Include the location and duration of the trip in each report. 

• Supporting Documentation
  1. Ensure invoices are legible and the expense can be identified. 
  2. Credit card slips, bank statement or screenshots of orders are not accepted.
  3. If possible, invoices should be issued under the entity on your employment agreement.  
     
     

Reimbursement and Taxability

Tax-Free Reimbursements 

The following are typically non-taxable when properly documented:

• Business expenses: a necessary cost to perform the job, such as flight, hotel, meals, transportation, parking, etc. 
• Additional expenes: IT equipment or professional conferences (these must be issued to the entity name that appears in your employment agreement.) 

Taxed expenses

Taxable expense examples are:  Phone or Internet bills. 

Mixed Expenses

These are business related expenses that also provide a personal gain. These expenses are considered taxable. 

Examples are: meals with colleagues, team-building activities, or fuel for rental cars. 

Per Diem for Business trips

• Up to a cap based on duration and location of the trip. 
• Applicable when personal meal expenses are not claimed. 
• Invoices as supporting evidence are required. 
  
  

VAT

• VAT is reclaimable if:
  • Properly invoiced, including a description of the expense on the invoice, and a VAT/tax number. 
  • Expense is business-related. 
    
    

Travel and Mileage

• Typically reimbursed as net according to rates and distance. 
• Details like vehicle model and distance/map must be included in the mileage log template. 
• Fuel is not reimbursed as net since fuel is a mixed expense.