What Qualifies as Travel Expenses?
What constitutes a business trip? Any travelling done with the intent of doing business can be considered tax-deductible. Such situations include flying abroad to broker a deal between your company and another, taking a train across the country to speak at a work conference, or driving to a supplier to pick up inventory in a city over or a province over. These expenses all qualify as work travel expenses, which can be deducted from your federal income taxes.
The qualifying factor of business trips is that the majority of the trip must be spent on work-related responsibilities. Flying to Europe for a week for a work convention and spending four out of the seven days at the convention, and three days exploring the city on your own is still considered travel for work.
However, if you spent three days at the convention and four days doing non-work related activities in the travel destination, this is considered a vacation and travel for pleasure. The expenses to and from the convention can still be regarded as tax-deductible, but the plane ticket itself is not.
The Canada Revenue Agency dictates what can and cannot be considered as tax-deductible travel expenses.