More and more documents can be signed with an electronic signature. Starting in 2018. – Also records of vehicle mileage, or so-called mileage. Thanks to this, the process of accounting for business trips of employees and accounting for entrepreneurs can go much more smoothly.

What signature for the mileage register?

In 2018, the National Tax Administration changed the previous interpretation of Article 16(5) of the CIT Act regarding mileage records.

According to Article 16(5) of the CIT Law, in order for an entrepreneur to include expenses related to the use of a car in deductible expenses, he must keep detailed records of the vehicle. One of the elements of such records, is the “taxpayer’s signature” specified in the law. The law itself does not specify how the mileage records are to be signed and what form the signature is to take.

Changing the interpretation of the law

Following a request for an interpretation from an entrepreneur who wanted to streamline the accounting of employee business trips and use an electronic system for approving vehicle mileage records, KAS changed the previous interpretation of the Law in favor of the entrepreneur.

The head of KAS agreed with the entrepreneur, who based his argument on the fact that the term “signature” includes not only a traditional, handwritten signature, but also a qualified as well as a non-qualified electronic signature. Both e-signatures allow unambiguous confirmation of the identity of the recipient, the entire signature procedure is secure, and the signature, once affixed, is uneditable

The National Tax Administration confirmed that the law does not specify what form the mileage signature should take, and the tax law does not explicitly regulate electronic signatures. This means that if, in accordance with the accounting law, an entrepreneur decides to use an electronic signature confirming the taxpayer’s identity with a login and password, such a signature complies with Article 16(5) of the CIT Law.

How do you sign mileage allowances?

You can sign mileage payments with any electronic signature, whether qualified or unqualified. If you want to act quickly, conveniently and without unnecessary complications, try the DocuSign® electronic signature platform, which allows you to sign with just a few clicks.

You can also go one step further and streamline your work even more. The Hatiroo™ electronic workflow system will allow you to keep a detailed mileage log, perform approvals and quickly send for electronic signature in DocuSign@.

And how much does it all cost? Check out our article Electronic signature simply pays for itself!