Digital Storage of Travel Expenses: The Revenue Agency Weighs In Again

The Revenue Agency has revisited the topic of digitizing travel expenses for employees on business trips, a process increasingly being adopted by companies as part of their paperless efforts. 

In response to inquiry no. 142/2024, the tax authority reiterated that to ensure the deductibility of costs, each digital document must possess the characteristics of immutability, integrity, and authenticity, in addition to the standard requirements for any deductible expense. 

If all these conditions are met, they have confirmed that paper documents can be replaced by digital ones and the process can be entirely paperless. It is understood that even paperless expense receipts must still allow verification of compliance with legal requirements. 

The Agency also reiterates that all other requirements for cost deductibility remain in place – such as relevance, competence, and appropriateness, as stipulated by the TUIR and established practices in the field – as well as the methods for allocating income to the reimbursed individuals.