Insights
TAX & BUSINESS
Associations: Record‑keeping Obligations for Volunteer Allowances and Travel Expense Reimbursements
To support the work of volunteers, charitable organisations such as associations have been able to make tax‑free payments to their volunteers since 2024 (the so‑called “volunteer allowance”).
For charitable sports clubs there is, regardless of this, the possibility to pay tax‑free flat‑rate travel expense reimbursements of up to EUR 120 per day of activity (up to EUR 720 per month) to athletes, coaches, referees and sports supervisors. The prerequisite in both cases, however, is that the club observes the relevant record‑keeping and reporting obligations and fulfils them within the prescribed deadlines.
Volunteer allowance
With the small volunteer allowance income from voluntary activity of up to EUR 30 per calendar day, but no more than EUR 1,000 per calendar year, is tax‑free. For charitable and certain non‑profit activities (social services), for assistance in disaster situations and for functions as trainer or instructor, the volunteer allowance may be retained tax‑free at a higher amount, namely EUR 50 per calendar day or EUR 3,000 per calendar year (large volunteer allowance).
The club must keep records, in particular of the number of days of activity of the volunteer and of the type and amount of the volunteer allowance. If a volunteer receives from the club more than the respective maximum (€ 30 / € 50 or € 1,000 / € 3,000), the club must report this to the tax office electronically by the end of February of the following year. The excess amount is then taken into account as other income in the volunteer’s income‑tax assessment.
Flat‑rate travel expense reimbursement
This type of tax‑free travel‑cost reimbursement can only be paid by charitable sports clubs, not by other charitable associations. For each athlete, referee or sports supervisor who receives a flat‑rate travel expense reimbursement within the framework of an employment relationship, the charitable sports club must maintain a payroll account or payroll records:
Volunteer allowance
With the small volunteer allowance income from voluntary activity of up to EUR 30 per calendar day, but no more than EUR 1,000 per calendar year, is tax‑free. For charitable and certain non‑profit activities (social services), for assistance in disaster situations and for functions as trainer or instructor, the volunteer allowance may be retained tax‑free at a higher amount, namely EUR 50 per calendar day or EUR 3,000 per calendar year (large volunteer allowance).
The club must keep records, in particular of the number of days of activity of the volunteer and of the type and amount of the volunteer allowance. If a volunteer receives from the club more than the respective maximum (€ 30 / € 50 or € 1,000 / € 3,000), the club must report this to the tax office electronically by the end of February of the following year. The excess amount is then taken into account as other income in the volunteer’s income‑tax assessment.
Flat‑rate travel expense reimbursement
This type of tax‑free travel‑cost reimbursement can only be paid by charitable sports clubs, not by other charitable associations. For each athlete, referee or sports supervisor who receives a flat‑rate travel expense reimbursement within the framework of an employment relationship, the charitable sports club must maintain a payroll account or payroll records:
- If only tax‑free flat‑rate travel expense reimbursements are paid to the individual recipient, who is, in substance, receiving earnings from non‑self‑employment, the club does not have to keep a payroll account, but payroll records must be created from which, in particular, the days of activity and the amount of the tax‑free grant can be derived. In addition, all travel expense reimbursements paid in a calendar year for each individual athlete, referee or sports supervisor must be entered in the official form (L 19) provided for this purpose and submitted to the tax office no later than the end of February of the following year.
- If payments exceeding the travel expense reimbursement are made, the club must submit a pay slip (form L 16) on which the travel expense reimbursements are to be taken into account. In this case, and when a pay slip is voluntarily submitted, the club does not have to use a separate form L 19.