Do you use a motor vehicle on your business trip? Remember that the basic compensation amount has increased!

With effect from 1^st June 2019, the amount of the basic compensation for the use of a passenger road motor vehicle increase from EUR 0,183/km to EUR 0,193/km. In the case of the use of a two-wheeled vehicle or tricycle, the basic refund shall be EUR 0,053/km. In addition to this substitution, there is also a substitute for consume fuel.

When assessing the entitlement to basic compensation, it is necessary to distinguish between its application for business trips of employees and business trips of entrepreneurs – natural persons. In the case of staff missions, in order for the basic compensation to be applicable and paid to the staff member, entitlement to that compensation must first arise.

The entitlement is defined by the statutory conditions:

1. The employee must agree in writing with the employer on the use of the vehicle,
2. The employee must use a motor vehicle other than that provided by his employer; the employee’s own vehicle, the relative’s vehicle, etc.

In the case of a natural person – entrepreneur who use his own vehicle on a business trip, a basic compensation for km of ride can be applied if the vehicle is not present and has not been included in the business assets of the entrepreneur. A foreign motor vehicle is understood in this context as not own motor vehicle or vehicle acquired under finance/operating lease, purchased under borrowing, etc. In these cases, the entitlement to the basic compensation per kilometer of travel is lost to the entrepreneur but he can continue to claim expenditure on fuel consumed during the business trip in accordance with the Income Tax Act, i. j. determining the value of fuel consumed as determined by the prices in force at the time of purchase and the number of kilometers traveled, or in terms of the GPS fuel consumption monitoring system or a fixed flat rate, e. g. 80:20.