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Book a Company Outing & SKR03: Here's How You Save Taxes!
Planning a company outing and want to ensure everything is handled correctly for tax purposes? Accounting with SKR03 can be tricky. We show you how to make the most of the 110-euro exemption and which accounts you need to use. Would you like to learn more about how we can support you in correctly booking your company outings? Get in touch with us here.
The topic, briefly and concisely
Note the €110 exemption per employee and event to ensure income tax exemption. Correct calculation and documentation are crucial to avoid tax pitfalls.
Use the two-event rule strategically by declaring the two most expensive company outings as tax-advantaged. This can significantly reduce your annual tax burden.
Select the correct SKR03 accounts for tax-free (4140/4946) and taxable wage expenses (4145). Choosing the right accounts is essential for proper bookkeeping and compliance with tax regulations.
Learn how to correctly account for your company outing in SKR03 and make the most of tax advantages. Avoid costly mistakes and maximize your savings!
Introduction to Company Outings and SKR03
What is a Company Outing and Why is Correct Accounting Important?
A company outing is an event organized by a business for its employees to enhance workplace atmosphere and strengthen employee engagement. It differs from other company events such as Christmas parties due to its often more active nature and involvement in leisure activities. Correct accounting for a company outing in accordance with SKR03 is crucial for several reasons: it ensures compliance with tax regulations, avoids errors during audits, and provides accurate representation of business expenses. Incorrect accounting can lead to unnecessary tax payments or even objections from tax authorities. Here at GoTuro, we assist you in booking your company outing and conducting accounting according to SKR03 correctly.
Overview of the SKR03 Chart of Accounts
The SKR03 chart of accounts is a widely used standard chart of accounts for accounting in Germany. It is systematically structured and divided into various account classes, each representing particular types of business transactions. For accounting of company outings, account classes 4 (Operational Expenses) and 1 (Financial and Bank Accounts) are particularly relevant. The SKR03 is pertinent for company outings as it includes specific accounts for tax-free and taxable expenses, as well as for input tax deductions. This allows you to book the costs for your company outing and accurately allocate them. More information on company events can be found here.
Make the most of the 110 Euro allowance: Here's how
Tax Basics and the 110-Euro Allowance
The 110-Euro Allowance: What You Need to Know
The 110-Euro Allowance is an amount up to which the costs for a company event per employee are tax-free. It applies to a maximum of two company events per employee per year. It is important to note that it is an allowance and not an exemption limit. This means that only the amount exceeding the allowance is taxable. The allowance includes catering, accommodation, travel costs, tickets, and gifts, including VAT. The costs for accompanying persons such as spouses and children are also included in the allowance and are attributed to the respective employee. To calculate the costs per employee, the total costs are divided by the number of employees (including accompanying persons). Overheads such as venue hire and organization must also be considered. Correct calculation is crucial to book the company outing and arrange it in the most tax-efficient manner. More information about the company outing allowance can be found on our page.
The Two-Events Rule
A maximum of two company events per employee per year can benefit from tax advantages. But what happens if more than two events take place? In this case, you must strategically choose which of the events are the most tax-advantageous. It is advisable to declare the two most expensive events as tax-advantaged company events to minimize the tax burden. The costs for a Christmas party can be found in the article Company Outing Christmas. The IHK Bonn also provides information.
VAT Treatment
The input tax deduction for company outings is a complex topic. Generally, the input tax deduction is only possible if there is a predominantly business-related interest, i.e., if the costs per employee do not exceed the 110-Euro Allowance. If the allowance is exceeded, the input tax deduction is forfeited. It is therefore advisable to keep costs in check and, if necessary, forgo the input tax deduction to take advantage of the allowance's tax benefits. Correct VAT treatment is an important aspect when you book a company outing. Additional information on VAT treatment can be found here.
Correct use of SKR03 accounts: How to record your company outing
SKR03 Accounts for Company Outings: Tax-Free and Taxable Expenses
Tax-Free Expenses (up to 110 Euros)
If the costs per employee do not exceed the 110-euro allowance, you can record the expenses as tax-free. For this, use account 4140 / 4946 "Voluntary Social Expenditures, tax-free". An example entry might look like this: Debit: 4140 (Voluntary Social Expenditures, tax-free) 90 Euros, Credit: 1200 (Bank) 90 Euros. The correct usage of this account is crucial to book a company outing and to manage it correctly for tax purposes. The Hirschfeld Kanzlei provides further insights into the correct account selection.
Taxable Expenses (over 110 Euros)
If the costs per employee exceed the 110-euro allowance, the expenses must be recorded as taxable. Use account 4145 "Voluntary Social Expenditures, taxable". An example entry might look like this: Debit: 4140 (Voluntary Social Expenditures, tax-free) 110 Euros, Debit: 4145 (Voluntary Social Expenditures, taxable) 40 Euros, Credit: 1200 (Bank) 150 Euros. The correct differentiation between tax-free and taxable expenses is essential when you book a company outing. Choosing the right account is crucial for tax treatment.
Flat-Rate Income Tax and Social Security Contributions
In certain cases, you can tax the taxable expenses at a flat rate. For this, use account 4149 / 6069 "Flat-Rate Tax on Other Benefits". The flat tax is 25% (plus solidarity surcharge and church tax). The amounts taxed at a flat rate are exempt from social security. An example entry might look like this: Debit: 4149 (Flat-Rate Tax on Other Benefits) XX Euros (25% of 40 Euros plus solidarity surcharge and church tax), Credit: Liabilities Tax Office XX Euros. The option of flat-rate taxation can reduce administrative burdens when you book a company outing. Haufe.de offers detailed information on flat-rate taxation.
Other Relevant Accounts
Besides the accounts already mentioned, there are others that might be relevant for booking company outings. Account 1200 / 1800 "Bank" is used for paying for the company outing. Account 1570 / 1576 "Deductible Input Tax" can be used under certain conditions for input tax deduction (see VAT Treatment). Correct use of these accounts is important to book a company outing and to complete the accounting process. Billomat offers further insights into account selection.
Properly Record a Company Outing: Practical Examples with SKR03
Booking examples and practical implementation in SKR03
Example 1: Company outing below the €110 allowance
In this scenario, the costs per employee are €90 (incl. VAT). The posting entry (SKR03) is: Debit: 4140 (Voluntary social expenses, tax-free) €90, Credit: 1200 (Bank) €90. This example shows how simple the booking can be when the company outing booking is below the allowance. Correct application of account 4140 is crucial here.
Example 2: Company outing above the €110 allowance
In this scenario, the costs per employee are €150 (incl. VAT). The posting entry (SKR03) is: Debit: 4140 (Voluntary social expenses, tax-free) €110, Debit: 4145 (Voluntary social expenses, taxable) €40, Credit: 1200 (Bank) €150. This example illustrates how costs must be split when the company outing booking exceeds the allowance. The distinction between tax-free and taxable expenses is essential here.
Example 3: Flat-rate taxation of taxable expenses
This example continues from Example 2. The posting entry (SKR03) is: Debit: 4149 (Flat-rate tax on other earnings) XX euros (25% of €40 plus solidarity surcharge and church tax), Credit: Liabilities to tax office XX euros. This example demonstrates how flat-rate taxation is applied when you wish to book the company outing and tax the taxable expenses as a flat rate. Correct calculation of the flat-rate tax is crucial here.
Avoiding Tax Traps: How to Ensure Correct Accounting
Common Pitfalls and Frequent Errors in Booking
Incorrect Calculation of Cost per Employee
A frequent mistake is the incorrect calculation of cost per employee. This can arise from failing to consider overheads such as rental costs and organisation or incorrectly allocating costs for accompanying persons. It is important to factor in all cost elements and correctly allocate costs to each employee when booking a corporate outing. The Trialog Magazine offers further information on accurate cost calculation.
Incorrect Handling of VAT
Another error is the incorrect handling of VAT. In particular, the unjustified deduction of input tax when exceeding the 110-euro exemption can lead to issues. It is important to precisely observe VAT regulations when booking a corporate outing. Correct VAT handling is crucial for tax compliance.
Disregarding the Two-Event Rule
Disregarding the two-event rule can also lead to errors. If more than two events per year are tax-privileged, this results in taxable earnings for income tax. Therefore, it is important to keep track of the number of events when booking a corporate outing. Strategically choosing the most tax-advantageous events is crucial here.
Lack of Documentation
Lack of documentation in the form of missing participant lists and invoices complicates traceability during audits. Therefore, it is important to carefully create and retain all relevant documents when booking a corporate outing. Complete documentation is essential for tax compliance. DATEV provides information on documentation.
How to Successfully Plan Company Outings: Tips for Optimal Execution
Tips for optimal planning and booking of company outings
Early Planning and Budgeting
Early planning and budgeting are crucial for the success of a company outing. Start with a detailed cost calculation considering the 110-euro tax allowance and encompass all cost factors. Choose a suitable location and activities that consider the interests of the employees. Careful planning helps you book the company outing and keep costs within budget. Our party trips offer inspiration for your next company outing.
Thorough Documentation
Create participant lists and collect all invoices to prove the business purpose. Clearly distinguish between tax-free and taxable expenses to facilitate accounting. Thorough documentation is essential if you wish to book a company outing and take advantage of tax benefits. Lexware offers further information on documentation.
Consultation with a Tax Advisor
Get individual advice from a tax advisor on tax treatment to ensure compliance. A tax advisor can help you consider all tax aspects and avoid mistakes when booking a company outing. Professional advice is an investment that can pay off. We at GoTuro work with experienced tax advisors to offer you the best possible support. Our incentive trips are a great alternative for your company outing.
Software solutions for SKR03: How to automate your accounting
Software solutions and tools for booking company outings with SKR03
DATEV and other accounting software
Use DATEV or other accounting software to ensure the integration of SKR03 into your accounting system. These software solutions enable the automation of booking processes and facilitate the correct accounting of company outings. Make sure to check browser compatibility with DATEV and use a modern browser to avoid errors. Automating accounting saves time and reduces the risk of errors when booking a company outing. DATEV provides comprehensive information on using the software.
TravelPerk and similar platforms for organizing company outings
Use TravelPerk or similar platforms to simplify the booking of transport and accommodation. These platforms offer integrated cost control and automate the creation of invoices and receipts, significantly easing accounting. Simplifying the booking processes saves time and resources when booking a company outing. TravelPerk offers tools for organizing company outings.
Key Benefits of [Topic]
Here are some of the key benefits you'll gain:
Benefit 1: Simplification of booking transport and accommodation
Benefit 2: Integrated cost control
Benefit 3: Automated creation of invoices and receipts
Tax Optimisation and Compliance: How to Stay on the Safe Side
Conclusion and Outlook
Summary of Key Points
Accurate accounting of company outings according to SKR03 is crucial to comply with tax regulations and avoid errors. Special attention should be paid to the 110-Euro allowance and the two-events rule. Careful planning, documentation, and advice from a tax advisor are essential when you book a company outing. Adhering to tax regulations is crucial for the long-term success of your business.
Outlook on Future Developments
The digitisation of accounting will play an even greater role in the future. Automation and increased efficiency will further simplify booking processes. Changes in tax law should also be observed, and booking practices adapted accordingly. Stay up to date to leverage the benefits of digitisation and ensure compliance when you book a company outing. We at GoTuro support you in keeping an eye on the latest developments and optimally shaping your accounting.
State subsidies for company outings offer an excellent opportunity to invest in employee motivation while saving taxes. Whether it is a day trip or a multi-day event, available funding programmes and tax benefits make organising a company outing attractive and financially achievable.
With a variety of funding opportunities and tax incentives, there are numerous ways to reduce the costs of your company outing. We at GoTuro provide comprehensive advice and support in selecting the right outing, fulfilling tax requirements, navigating the booking process, and avoiding potential problems.
By choosing a company outing, you are investing in the future of your company. You not only enhance employee motivation and strengthen team spirit but also make an important contribution to employee retention.
Now is the perfect time to explore the opportunities for your company outing. Contact us today to start your individual consultation and book the outing quickly and easily. Sign up for free and receive a non-binding offer for your next company outing immediately.
Company Outing with SKR03: How You Benefit in the Long Run
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FAQ
To which account should I book a company outing in SKR03 if the costs are under 110 euros per employee?
If the costs per employee do not exceed the 110-euro allowance, you should book the expenses as tax-free expenses on account 4140 / 4946 "Voluntary social expenses, tax-free".
What happens if the costs per employee exceed the 110-euro allowance?
If the costs exceed the 110-euro allowance, the excess amount should be booked as taxable expense on account 4145 "Voluntary social expenses, taxable".
How do I calculate the costs per employee to correctly apply the 110-euro allowance?
Divide the total cost of the company outing (including VAT and costs for accompanying persons) by the number of participating employees (including accompanying persons). Ensure you also include overheads such as room rental and organization.
What is the two-events rule and how does it affect SKR03 booking?
A maximum of two company events per employee and year can be tax-favoured. Strategically select the two most expensive events to minimise the tax burden. A third event results in taxable income.
How does the input tax deduction work with company outings?
The input tax deduction is only possible with a predominant business interest, i.e., when the costs per employee do not exceed the 110-euro allowance. If exceeded, the input tax deduction is forfeited.
What role does documentation play in booking a company outing according to SKR03?
A complete documentation with participant lists, invoices, and cost calculations is essential for traceability in company audits. It serves as proof of the business purpose and the correct application of the 110-euro allowance.
Can I tax the taxable expenses at a flat rate?
Yes, in certain cases, you can tax the taxable expenses at a flat rate of 25% (plus solidarity surcharge and church tax). For this, use account 4149 / 6069 "Flat tax on other benefits". The flat-rate taxed amounts are exempt from social security contributions.
Which software can I use for SKR03-compliant booking of company outings?
Use DATEV or other accounting software to ensure the integration of SKR03 in your accounting. Platforms like TravelPerk simplify the booking of transport and accommodation and offer integrated cost control.
