Reimbursement of expenses

Reimbursement of expenses (Auslagenersatz) is the refund of costs that employees initially paid out of their own pocket for their employer. Typical cases are small purchases, postage, parking fees or entertainment on behalf of the company. Reimbursement of expenses is not wages, but the repayment of costs actually incurred.

Requirements

Reimbursement of expenses is tax-free under § 3 no. 50 EStG if the employee made the expense on behalf of the employer, in their own name or in the employer’s name, and it is settled individually. The costs must not have been incurred in the employee’s own interest, and they must be documented.

Typical examples

• Office supplies, postage or small purchases for the company
• Parking fees, admission or participation fees
• Entertainment of business partners on behalf of the company
• Telephone costs for the company

Travel expenses such as travel or accommodation costs are usually reimbursed tax-free under a separate provision (§ 3 no. 16 EStG), but in everyday language they are often also called expenses. More under out-of-pocket expenses.

Difference to per diems and allowances

With reimbursement of expenses, specific, documented costs are refunded. Per diem allowances such as the meal allowance, on the other hand, are paid at a fixed amount, regardless of actual expenses. Often both occur together, for example when meals are reimbursed at a flat rate and the hotel against a receipt. More in the expense report.

Flat-rate reimbursement of expenses

Flat-rate reimbursement of expenses without individual proof is generally taxable wages. In exceptional cases, it remains tax-free if it recurs regularly and the employee proves the actual costs for a representative period of three months. A simplification applies to telephone and internet: without individual proof, up to 20% of the bill, at most €20 per month, is tax-free.

Recording reimbursement of expenses digitally

In Spesenfuchs, you record expenses as a single receipt or within a trip. The payment method determines whether the amount is reimbursed, the approval workflow controls the release, and the data goes directly to accounting.

Legal basis and sources: § 3 EStG: tax-free income, R 3.50 LStR: transitory items, reimbursement of expenses (LStH 2026), Gabler Wirtschaftslexikon: Auslagenersatz (in German)