Foreign Per Diem in a Sole Proprietorship (JDG) in Poland in 2026 — Travel, Accommodation and VAT

An entrepreneur can book expenses related to a foreign business trip as costs, provided they are connected with earning, securing or safeguarding revenue. However, two mechanisms must be kept separate:

• the entrepreneur's per diem — up to the limit applicable to an employee,
• actually incurred expenses, such as transport and accommodation — based on documents and subject to tax restrictions.

Under lump-sum tax (ryczałt), these expenses do not reduce the revenue taxed under the lump sum.

What the per diem covers

The per diem covers the increased cost of meals and other minor expenses during a trip. The entrepreneur does not pay it out to themselves the way an employee is paid. Instead, they set the amount they can book as a cost — no higher than the per diem due to a public-sector employee.

The rate depends on the destination country of the trip. Sample full per diems:

• Germany: 49 EUR,
• France: 55 EUR,
• Czech Republic: 41 EUR,
• Netherlands: 50 EUR,
• United Kingdom: 45 GBP,
• United States: 59 USD.

Before settling, check the current annex to the regulation. The amount depends on the destination country, not on the invoice currency or the country of transfer.

How to calculate the duration of a foreign trip

For each full 24-hour day, the full per diem is due. For an incomplete day:

• up to 8 hours — 1/3 of the per diem,
• over 8 up to 12 hours — 1/2 of the per diem,
• over 12 hours — the full per diem.

The start and end of the foreign part depend on the means of transport. It is determined differently for travel by car than for a flight or a trip by ship.

Example: the foreign part of a trip to Germany lasts two full days and another five hours. The per diem limit is 2 and 1/3 × 49 EUR, i.e. 114.33 EUR.

Free meals reduce the per diem

If the entrepreneur received meals, the per diem is reduced according to the rules that apply to employees:

• breakfast — 15% of the per diem,
• lunch — 30%,
• dinner — 30%.

"Breakfast included in the hotel price" is not neutral — it should reduce the per diem if it was actually provided.

Hotel and accommodation

An invoice for a hotel connected with a business trip can be a tax-deductible cost. For an entrepreneur, the basis is an actually incurred, reasonable and documented expense, not automatically the employee accommodation limit.

You should not mix up:

• the hotel limit from the regulation on employee allowances,
• the lump sum for an employee's overnight stay without a bill,
• the cost of the entrepreneur's own overnight stay.

An entrepreneur should document their own overnight stay with an invoice or another proof that meets tax requirements. Do not assume that without a document you can automatically book the employee accommodation lump sum.

Transport and other expenses

Costs may include, among others:

• an air, rail or bus ticket,
• a taxi ride or transport ordered via an app,
• road tolls and parking fees,
• car rental,
• accommodation,
• fees for taking part in a trade fair or a meeting.

The expense must be connected with the business and properly documented.

A car on a foreign trip

How fuel and other car expenses are recognized depends on the status of the vehicle:

• a company car also used privately — as a rule, 75% of the expense as an income tax (PIT) cost,
• a company car used exclusively for business — up to 100% is possible if the conditions for exclusive use are met,
• the entrepreneur's private car not entered into the business — as a rule, 20% of the expense as a PIT cost.

It is not true that every "private car" gives a 75% cost.

Foreign VAT

VAT shown on an invoice from another country is not Polish input VAT. You do not deduct it directly in the Polish standard audit file for VAT with declaration (JPK_V7).

This applies, for example, to a foreign hotel, a local taxi or fuel bought abroad. In certain cases an entrepreneur can apply for a refund of foreign VAT under the VAT-REF procedure or the relevant procedure of a non-EU country.

A foreign hotel is not a Polish import of services settled under the reverse charge (VAT) mechanism. A service related to real estate is, as a rule, taxed in the country where the hotel is located.

VAT on tickets

Not every air ticket automatically has 0% VAT. Taxation depends, among other things, on the type and route of transport and on who issued the document.

For bookkeeping, use the data from the invoice or from a ticket that constitutes an invoice. Do not add a 0% rate yourself if the document does not show it.

Currency conversion for PIT

A cost expressed in a foreign currency is, as a rule, converted at the average exchange rate of the National Bank of Poland (NBP) from the last business day preceding the day the cost is incurred. The day a cost is incurred depends on how the books are kept and on the type of document — it is not automatically the payment date.

The per diem is converted into złoty in line with the rules applicable to an entrepreneur's costs. In your records, note the trip duration, the destination country, the rate and the exchange rate used.

Lump-sum tax on recorded revenue

Under the lump sum you do not account for deductible expenses (KUP). The entrepreneur's hotel, transport, fuel and per diem do not reduce the lump-sum tax base.

This does not mean that "the per diem is a reimbursement that is not revenue." The entrepreneur does not pay a reimbursement to themselves. It is simply that under the lump sum they do not benefit from a cost-based settlement of the per diem.

Trip documentation

It is worth keeping:

• the purpose of the trip and its connection with the business,
• the date and time of the start and end,
• the destination country,
• information about meals provided,
• invoices, tickets and payment confirmations,
• the calculation of the per diem and the currency exchange rate,
• proof of the meeting, event or other business purpose, if the connection with revenue does not follow directly from the documents.

Most common mistakes

A full per diem for every started day

An incomplete day is settled as 1/3, 1/2 or a full per diem depending on the number of hours.

No reduction for breakfast

Meals provided reduce the per diem limit.

The employee hotel lump sum without a document

The rules for employee allowances cannot be automatically transferred to the entrepreneur's accommodation cost.

Polish reverse charge on a foreign hotel

This is wrong. Foreign VAT does not become Polish input VAT or an import of services merely because the client runs a Polish JDG.

The exchange rate from the payment date

For PIT, as a rule, you use the rate from the business day preceding the day the cost is incurred, not automatically the rate from the transfer date.

FAQ

Can an entrepreneur claim a per diem?

Yes, if the trip is connected with the business. The cost is limited to the amount of the employee per diem applicable to the given country and trip duration.

Does a hotel invoice have a statutory cost limit?

The accommodation limit provided for employees does not apply automatically here. The expense must be real, reasonable, connected with the business and documented.

Does the per diem reduce tax under the lump sum?

No. The lump sum is calculated on revenue and does not take travel costs into account.

Can foreign VAT be recovered?

In some cases yes, including through VAT-REF in the EU. It depends on the country, the type of expense and the connection of the purchases with activities that give the right to deduct.

Sources

• Regulation on business-travel allowances — ISAP
• Biznes.gov.pl — an entrepreneur's business trip
• Podatki.gov.pl — refund of VAT paid in another EU country

Need help settling your trips?

I run bookkeeping for sole proprietorships (JDG) with foreign expenses — from 49 zł + VAT per month.

Reply to [email protected] or visit oxyok.com/pl.

Note: A trip must have a genuine connection with the business. Private and tourist expenses do not become a cost merely because the invoice is issued to the company.