What is the Expense reimbursement policy in Slovakia?

This article explains how business expenses are reimbursed in Slovakia, including mileage, travel costs, per diems, documentation requirements, and tax treatment. Reimbursements must comply with the Slovak Labour Code and applicable tax regulations to remain non‑taxable.

1. Travel & Mileage (Private Vehicle Use)

Statutory Mileage Reimbursement

Slovakia mandates minimum reimbursement rates when employees use a private vehicle for business travel.

• Passenger car (base rate): approx. €0.239 per km
  (Set by government decree and adjusted periodically)

In addition to the base rate, employees are reimbursed for:

• Fuel costs, calculated using:
  • Actual fuel receipts, or
  • Official fuel‑price tables published by the authorities

Employers may reimburse more than the statutory minimum, but any excess may become taxable income.

Mileage Log Requirement

Mileage claims must be supported by a log including:

• Date of travel
• Route (origin & destination)
• Kilometres driven
• Business purpose
• Vehicle identification (e.g., registration number)

2. Parking, Tolls & Road Charges

The following must be claimed separately from mileage:

• Parking fees
• Highway tolls
• Vignettes
• Ferry fees

Receipts are required, and these costs are not included in the per‑km rate.

3. Business Travel Rules

• Travel must be authorized in advance and necessary for business.
• There is no fixed statutory capon travel costs, but expenses must be:
  • Reasonable
  • Properly substantiated

Important

• Commuting between home and the regular workplace is not reimbursable tax‑free.

4. Transportation & Accommodation

The following may be reimbursed based on actual receipts:

Transportation

• Air travel (economy class expected unless a business need justifies an upgrade)
• Bus, train, tram
• Taxi and ride‑share services
• Rental cars (requires:
  • Rental invoice
  • Fuel receipts
  • Business justification)

Accommodation

• Hotel or short‑term lodging
• Invoice or receipt required

5. Invoicing & Documentation Requirements

To qualify as non‑taxable reimbursement, each expense must include:

• Supplier invoice or receipt
• Date of the expense
• Description of goods/services
• Business purpose

Additional details:

• Employee name is helpful but not mandatory
• Company tax ID is not always required, but recommended for VAT‑deductible invoices

Company Entity

Invoices should be issued, where possible, to:
Horizons Global Technology Slovakia, s.r.o.

Small Expenses

For very small amounts (typically under €10–€20), simplified receipts are generally accepted.

6. Reimbursable Expenses (Examples)

When properly documented, the following are generally reimbursable and non‑taxable:

• Business travel (air, train, bus)
• Taxi or ride‑share for business purposes
• Mileage and fuel costs
• Accommodation
• Meals reimbursed under the per diem system
• Parking, tolls, vignettes
• Work‑related supplies and materials

7. Per Diem Allowances (Domestic & International)

Domestic Travel Per Diems

Tax‑free domestic per diems depend on the length of the business trip:

• €7.80 – 5 to 12 hours
• €11.60 – 12 to 18 hours
• €17.40 – 18+ hours

International Travel Per Diems

• Rates vary by country
• Published by the Slovak Ministry of Finance
• Only amounts within official limits are tax‑free

Meal Reductions

If free meals are provided by the employer or hotel, the per diem must be reduced accordingly.

8. Entertainment, Gifts & Other Expenses

Business Entertainment

• Deductible and non‑taxable only if:
  • Clearly business‑related
  • Reasonable in amount
  • Supported by receipts and purpose description

Client Gifts

• Generally taxable unless:
  • Low‑value promotional or marketing items
  • Clearly linked to business activity

Wellness & Personal Expenses

• Gym memberships, yoga, therapy, and medical costs are not tax‑free, unless:
  • Provided as a voluntary benefit and
  • Taxed as a fringe benefit, or
  • Exempt under a specific, compliant wellness program

9. VAT Treatment

• VAT on reimbursed expenses follows standard Slovak VAT rules.
• VAT can generally be reclaimed if:
  • The expense is business‑related
  • The invoice meets VAT requirements
  • The company is VAT‑registered