Benefits in kind and travel expenses

The topic of benefits in kind and travel expenses causes confusion time and again. Since the German travel expense reform of 2014, there has been a clear rule on how benefits in kind and travel expenses are connected, which we explain below.

The rules described reflect the status of November 2026.

Contents: What are benefits in kind? · Benefits in kind on trips · Benefit-in-kind values · Examples · How Spesenfuchs helps

What are benefits in kind?

Benefits in kind are goods and services that an employer provides to an employee as a non-cash bonus. This can be the private use of a company car or a gift in kind. Free or reduced-price meals in the company canteen are also a benefit in kind.

The advantage of a benefit in kind is that the employer supports employees financially without the employee having to pay tax on it. However, the total value of all benefits in kind must not exceed a certain amount per month: the exemption limit of €50. If it is exceeded, the entire amount is taxable wages. This exemption limit does not apply to meals and accommodation; official benefit-in-kind values apply here instead. These usually change every year.

How does this relate to travel expense reporting?

One might think that the tax-free allowances are also benefits in kind. That is not the case: per diems are tax-free reimbursement of travel expenses. Before the 2014 reform, meals provided could be taxed as a benefit in kind instead of being deducted from the per diem. This was more attractive for the employee from a tax point of view. This approach is no longer permitted.

If the employer provides a customary meal (up to €60 including drinks) on a business trip and the employee is entitled to a per diem, no benefit in kind is taxed. Instead, the allowance is reduced: in Germany by €5.60 for a breakfast and by €11.20 each for lunch or dinner.

However, if an employee is away on business for 8 hours or less (and is therefore not entitled to additional meal expenses) and the employer pays for a meal, this counts as a benefit in kind. In this case, the benefit must be taxed at the official benefit-in-kind value in the employee’s payroll. Alternatively, the employer can tax it at a flat rate of 25%. These amounts also change every year.

Benefit-in-kind values for meals 2026 and 2027

Meal	2026	2027
Breakfast	€2.37	€2.43
Lunch	€4.57	€4.70
Dinner	€4.57	€4.70

You will find all values for 2027, including accommodation and per month, in the guide Travel allowances and benefit-in-kind values 2027.

Examples: benefit in kind or reduction?

Situation	Consequence
Travel day with 24 hours of absence, the employer pays for lunch	Allowance €28 minus €11.20 = €16.80 tax-free, no benefit in kind
One-day trip, away for 10 hours, the employer pays for breakfast	Allowance €14 minus €5.60 = €8.40 tax-free, no benefit in kind
Customer appointment, away for 6 hours, the employer pays for lunch	No allowance, benefit in kind €4.57 (2026) in payroll

Our guide Calculating additional meal expenses shows how to calculate the per diems overall.

How Spesenfuchs helps

Spesenfuchs decides automatically whether a benefit in kind has to be applied. You mark meals provided on the “Days” page of the trip. Spesenfuchs then reduces the per diem or applies the valid benefit-in-kind value and shows it in the travel expense report.

More guides: Travel allowances and benefit-in-kind values 2027, Per diems 2026, Save taxes through travel expense reporting.

Sources: § 8 (2) EStG, § 9 (4a) EStG, § 40 (2) sentence 1 no. 1a EStG, Social Insurance Remuneration Ordinance (SvEV)