This article outlines the mileage allowance rules applicable in Germany.
Mileages are allowances at a specified rate per mile or km granted to employees for the use of a vehicle.
€0.30 per km with a car
€0.20 per km with a motorcycle or moped
These rates are pre-set when using Circula.
A traveller working in Berlin visits a client based in Dortmund and uses his private car for the trip. Assuming the total distance for the round trip was 576km.
The corresponding mileage allowance will be: 576 x €0,30 = €172.80.
📝 Note: the same rules applies for German companies worldwide. The same calculation would apply for a trip with private car that took place in France, for instance.
How is the distance of the trip calculated?
To calculate the reimbursable amount of the mileage allowance, the Circula app asks for the start and destination address of the trip.
The distance traveled is calculated based on Google Maps.
💡If the actual distance traveled needs to be adjusted (e.g. due to detours etc.), users can adjust the number of kilometers in the "Distance (km)" field.
❗️Please note that the commuter flat rate (Pendlerpauschale) should under no circumstances be confused with the kilometre flat rate (Kilometerpauschale). The commuter flat rate only concerns the distance between the place of residence and the first place of work. You can find more information on this topic in this blog article (German language only).
Do you still have questions?
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