Deadline for expense reports

The deadline for expense reports is the period within which a travel expense report or expense claim should be submitted after the end of the trip. It is usually set by the company. There is no statutory deadline, but tax law, accounting and employment law result in sensible limits.

Typical deadlines in companies

In practice, companies often set deadlines of 7 to 30 days after the end of the trip, often in a travel expense policy. This way, costs end up in the right month and accounting can book them promptly. If the deadline is missed, the company can refuse reimbursement if this has been agreed. Many employment contracts and collective agreements also contain cut-off periods after which claims lapse if they are not asserted in time. Without such rules, the claim to reimbursement becomes time-barred after three years (§ 195 BGB).

How far back can travel expenses be claimed?

A travel expense report can in principle also be created retrospectively. What matters is what the employment contract, collective agreement and travel expense policy say. If the deadline has been missed and a cut-off period applies, the claim to reimbursement can lapse. Without such a rule, the claim remains until it becomes time-barred, i.e. three years from the end of the year in which it arose. Anyone who claims income-related expenses themselves can still include them in the tax return for the year concerned.

Tax background

The Income Tax Act does not prescribe a deadline for expense reports. However, the cash principle under § 11 EStG is important: for the self-employed using cash-basis accounting, an expense counts in the year in which it was paid. The same applies to employees who claim travel expenses themselves as income-related expenses. Companies that prepare balance sheets, on the other hand, record travel expenses as a business expense in the year in which they were economically incurred, even if the report comes later. The GoBD also require business transactions to be recorded promptly.

What it means for companies and the self-employed

For companies, a clear deadline belongs in the travel expense policy. It ensures uniform processes and complete monthly and annual accounts. The self-employed should book receipts and travel expenses as promptly as possible and in the right year. A fixed deadline also makes working with accounting or the tax advisor easier.

Deadlines in Spesenfuchs

Spesenfuchs shows which trips or assignments away from the workplace have not yet been settled. You capture receipts directly on the go with the app, so the report is finished quickly after the trip.

Typical mistakes

• Receipts are submitted too late and get lost
• Reports are created in the following year although the costs belong to the previous year
• No clear rule in the company, leading to uncertainty and inconsistent processes

Legal basis and sources: § 11 EStG: receipt and payment, § 195 BGB: standard limitation period