Poland Expense Reimbursement Policy



Modified on: Tue, 30 Sep, 2025 at 5:48 PM

TABLE OF CONTENTS



This policy outlines the rules for reimbursing business-related expenses for employees in Poland, including mileage, travel, documentation, and tax treatment, in line with Polish tax law and Ministry of Infrastructure regulations. 


Invoicing & Documentation

Accepted Documents

  • Invoices, receipts, or proof of purchase are required.
  • For CIT (corporate income tax): All documents must be stored and described.
  • For VAT recovery:
    • Only invoices are accepted.
    • Toll tickets and transport receipts may qualify as invoices if they include:
      • Issue date and number
      • Horizon's vendor name and tax ID:
        • Horizons Global Technology SP Zoo
          NIP (tax identification):7011120237
      • Description of service
      • VAT amount and total due

Simplified Invoices

  • Receipts up to 450 PLN gross with buyer’s NIP number qualify as simplified invoices and allow VAT deduction.



Reimbursement & Taxability

Tax-Free Reimbursable Expenses

With proper documentation, the following expenses are not taxable to employees and deductible for the company:

  • Travel (airfare, train, taxi, rental car)
  • Accommodation
  • Meals during business travel
  • Conference fees
  • Business-related supplies
  • Small promotional gifts (with logo, under value limits)

Clarification: For CIT, these are deductible business costs. For PIT, they are not taxable to the employee if within limits and properly documented.



Per Diems

Domestic Travel

  • Full per diem: 45 PLN/day
  • Accommodation flat rate: 67.50 PLN/night
  • Partial day calculation:
    • 8–12 hours: 50% of per diem
    • 12 hours: Full per diem
    • <8 hours: No per diem


International Travel

  • Rates vary by country (refer to Polish Ministry regulation)
  • Partial day calculation:
    • <8 hours: 1/3 per diem
    • 8–12 hours: 50%
    • 12 hours: Full per diem
  • Meal deductions:
    • Breakfast: -15%
    • Lunch: -30%
    • Dinner: -30%
  • Accommodation:
    • With receipt: Country-specific limit
    • Without receipt: 25% of limit

CIT: Per diems are deductible

PIT: Per diems are not taxable if within official limits


Travel & Mileage Reimbursement

Mileage Rates

Employees using their private vehicles for business travel may be reimbursed at the following official rates:

  • Passenger car (≤900 cm³): 0.89 PLN/km
  • Passenger car (>900 cm³): 1.15 PLN/km
  • Motorcycle: 0.69 PLN/km
  • Moped: 0.42 PLN/km

These rates cover fuel, wear and tear, and standard operating costs. Reimbursements above these limits are not tax-deductible.

Parking & Tolls

  • Must be reported separately from mileage.
  • Require individual receipts.
  • For company or leased cars, only 75% of operating costs (including tolls/parking) are deductible.
  • For private cars, tolls and parking are deductible only within the mileage allowance limit.



Business Travel Rules


Transport Modes

Mode of TransportRequirements
Air TravelEconomy class unless pre-approved; e-ticket and invoice required
Train/Bus/TramTicket or official receipt required
Taxi/CabsReceipt or e-receipt showing employee or company name + journey details
Rental CarsRental agreement + VAT invoice + fuel receipts (if reimbursed separately)


Leasing Rules

  • Short-term leases (<6 months): Costs deductible up to PLN 150,000 (insurance value).
  • Long-term leases: Deductible up to PLN 150,000 (or PLN 225,000 for electric cars).
  • Operating costs for leased cars: 75% deductible.


Entertainment & Gifts

CIT Rules

  • Advertising gifts (e.g., branded pens, calendars): Deductible
  • Representative gifts: Deductible only under strict conditions
  • VATmust be charged unless:
    • Value ≤ 100 PLN/year per person, or
    • ≤ 20 PLN per item

Business Meetings

  • Meals with contractors may be deductible if tied to business activities

Employee Integration Events

  • Deductible if linked to improving work efficiency
  • Must demonstrate business relevance

Each expense must be individually analyzed and properly documented



Wellness & Health Expenses

CIT Rules

  • Well-being programs may be deductible if:
    • Not personal in nature
    • Offered broadly to staff
  • Medical bills, gym memberships, therapy:
    • May be taxable unless required by law or directly tied to business
    • Case-by-case analysis required



VAT Considerations

Re-invoicing vs. Cost Reimbursement

  • Re-invoicing: Entity resells a service; must issue VAT invoice
  • Cost reimbursement: Entity pays on behalf of another; no resale
  • VAT treatment depends on:
    • Who purchased the service
    • Whether the service was resold
    • Documentation and contractual terms

Each case requires factual analysis to determine VAT applicability


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