What can be deducted for an extensive work area?
A large-scale work area exists when the contractually agreed work is performed not within a fixed business location, but over a specific area.
Typical examples include:
- Factory premises
- Exhibition grounds
- Barracks grounds
- Airport grounds
- Shipyard premises
First place of work or off-site work?
The key factor is whether the entire area is considered the first place of work or if it is off-site work. The tax treatment differs:
- First place of work: The nearest work location within the area is considered a fixed place of work.
- Off-site work: Applies if work is carried out at various changing locations within the area.
What is tax-deductible?
- The nearest work location in the large-scale work area is considered the "first place of work" and allows for the deduction of the distance allowance (30 cents per kilometre; 38 cents from the 21st kilometre).
- All other journeys within the large-scale work area can be deducted with the business travel allowance (30 cents per kilometre driven) or the actual costs, or reimbursed tax-free.
- Absences of more than 8 hours allow for the deduction of meal allowances or tax-free reimbursements, with no time limit (no three-month rule).
- For journeys with a company car to the nearest work location, a surcharge value must be taxed as wages (monthly 0.03% of the list price per kilometre). For other journeys, no taxation of the usage value is required, but no deduction of income-related expenses is possible either.
Current rulings and examples
The tax classification depends heavily on the individual case. Here are some relevant decisions by the Federal Fiscal Court (BFH) and the tax courts:
| Occupation / Activity |
Court decision |
| Factory railway train driver |
Entire work area = first place of work
(BFH, 01.10.2020, VI R 36/18) |
| Paramedics / Postal workers |
No large-scale work area – first place of work applies
(BFH, 30.09.2020, VI R 11/19, VI R 10/19, VI R 12/19) |
| Refuse collectors |
Depot = not a first place of work for purely administrative tasks
(BFH, 02.09.2021, VI R 25/19) |
| Dock workers (Hamburg) |
No large-scale area, as specific work locations assigned
(BFH, 15.02.2023, VI R 4/21) |
| Port of Bremerhaven in general |
No unified work area – no "large first place of work"
(FG Niedersachsen, 02.09.2022, 4 K 149/21) |
| Senior drivers in port area |
First place of work in employer's building for more than minor tasks
(FG Niedersachsen, 04.09.2024, 4 K 48/24) |
Conclusion: For work on a large-scale site, the decisive factor for tax purposes is whether there is a first place of work or not.
This affects, among other things:
- the type of travel expense deduction (distance allowance vs. business travel allowance)
- the possibility of claiming meal allowances
- the tax treatment of company car use
Tip: Regularly check new BFH rulings – the classification may change depending on the job and workplace.
