Domestic and cross-border business trips

On 24.03.2023 certain amendments to the regulations on the business travel of employees, were promulgated. The amendments entered into force as of 27.03.2023.

The amendments affect a number of aspects, including the following:

• increase of the minimum amount of daily allowances for domestic and cross-border business trips
• introduction of the possibility for issuing an electronic order to regulate domestic business trips
• dropping the requirement for certification, dating and stamping of the order regarding domestic business trips
• change in fuel accounting for domestic business trips by a personal motor vehicle.

Increase of the minimum amount of daily allowances for domestic business trips

The amount of the daily allowances is increased - from BGN 20 to BGN 40 in case of staying overnight at the place of the assignment. In case of a business trip without an overnight stay, the daily allowance amounts to BGN 20 (instead of BGN 10 as until recently). No per diems and housing allowances are due when the employee is entitled to free food and stay for the duration of the business trip.

Introduction of the possibility for issuing an electronic order regarding domestic business trip

One of the main changes to the Ordinance on domestic business trips consists in the possibility provided by the legislator for the business travel order to be issued as an electronic document. It should be noted that the legislator has not regulated the prevalence between the Ordinance on the type and requirements for the creation and storage of electronic documents in the employee’s file (the "Ordinance on electronic communication") and the Ordinance on domestic business trips. According to the Ordinance on electronic communication an electronic order may be issued and served only in compliance with all (considerable and detailed) technical requirements regarding electronic communication with employees, which, among others, requires also the use of a qualified electronic signature by the employer and service only via an electronic registered delivery service. The matter will most likely be resolved in practice, but it seems possible to argue that the Ordinance on domestic business trips regulates a special, i.e. exceptional case where the requirements of the Ordinance on electronic communication do not apply. This may also be supported since the previous regulation allowed the issuance and delivery of electronic orders as well, just subject to the stricter requirements set out in the Ordinance on electronic communication.

It is also unclear how the lack of such an explicit regulation in the Ordinance on cross-border business trips should be interpreted - whether it is possible to apply the Ordinance on domestic business trips by analogy or it should be considered that the legislator has explicitly indicated for which cases the issuing of electronic order is admissible and for which it is not, thus, concluding that an electronic order may not be issued for cross-border trips. although objective arguments for a different regulation would be difficult to justify.

Dropping the requirement for certification, dating and stamping of the order regarding domestic business trips

Another significant change is the removal of the requirement to have the business travel order certified with a signature, date and stamp by an authorized official at the place of the assignment. This change in practice concerns only the case in which the order is issued on paper. However, the legislator has provided an opportunity for the employers at their own discretion to expressly provide in the business travel order that the latter must be certified by the signature of an authorized official at the place of the assignment.

The requirement for the order regarding cross-border business trips to contain the company's stamp is removed as well and this requirement now remains applicable only to certain state own entities.

Change in fuel accounting for domestic business travel by a personal motor vehicle

In case of travelling on business trips by a personal motor vehicle of the employee the travel allowance payable will be in the amount equivalent of the fuel used for a mixed traffic (within and between cities).

Increase in the minimum amount of daily allowance for cross-border business trips

An increase in the minimum amounts of daily allowances for cross-border business trips was adopted, as well as determination of the amounts of daily allowances in euros in all cases, regardless of the currency of the destination of assignment. The legislator also introduced the possibility for payment of accommodation allowance in actual amounts without the restrictions on the amount.