Travel Policy > Foreign Travel
Travel Classifications - CONUS/O-CONUS, Domestic/Foreign
Partial Per Diem for Foreign Travel
Permission Required to Use Actual Expenses in Lieu of Per Diem
Foreign Travel Using Sponsored Funds
Passports and Visas
Countries Under State Department Advisory
Taxability of International Travel with Personal Use
Illustrations of International Travel Combining Business and Personal Expenses
Value-Added Tax (VAT) Reclamation
*Puerto Rico; Guam; U.S. Virgin Islands; American Samoa; Northern Mariana Islands; Midway Islands; Wake Island; Johnston Atoll; Baker, Howland, and Jarvis Islands; Kingman Reef; Navassa Island; Palmyra Atoll
Top
If any meals are provided by a conference or host, then the meal per diem for that trip will be adjusted to correspond with the meals that were provided. In the event that all meals for a day are provided by a conference, business group meal, or another source, no meal per diem can be claimed for that day. However, the incidental amount, which varies by location, may still be claimed at the traveler's discretion.
Top
Travelers using a non-U.S. flag air carrier requesting reimbursement from a U.S. government-sponsored project must qualify for an exception under the act. The traveler must complete the Fly America Act Exception form. The exception form must be signed by the traveler and a representative of Travel Services (or the contract travel agency that booked the original itinerary) and submitted with the travel settlement request. The traveler is encouraged to complete the exception form before booking the trip to ensure that the costs will be allowable on the federally sponsored project. The traveler must use a U.S. flag air carrier on every portion of the route where service is provided unless the traveler qualifies for a waiver. Note that cost and/or personal convenience are not included in the exception criteria used to determine the non availability of a U.S. flag air carrier. Travel Services Online cannot be used when exceptions to the Fly America Act are required.
Plans for travel to countries under State Department Advisory must be reviewed with the Department of Risk Management to ensure proper insurance coverage for the traveler. Individuals traveling abroad must consult the sponsor's guidelines to ensure compliance, and obtain prior approval when required.
Top
For the purposes of calculating the percentage of business and personal time when a travel day consists of both business and personal time, the day would be classified as a business day. For purposes of this policy, sabbaticals are treated as business. For more information, review the following examples:
Top
Depending on the country, VAT may be refunded on hotels, restaurants, car rentals, parking, gasoline, diesel fuel, transportation within the country, business entertainment, telecommunications, conferences, trade shows, training courses, and professional fees. Certain VAT is not refundable, such as on alcohol and laundry services.
The employee is responsible for completing the VAT Reclamation. A list of participating countries and reclamation information is available on the value-added tax page.
In the event a VAT refund is to be claimed, the employee is responsible for submitting original receipts to the Financial Officer, even if the per diem method is used for reimbursement.
Foreign Travel
Travel Classifications - CONUS/O-CONUS, Domestic/Foreign
Partial Per Diem for Foreign Travel
Permission Required to Use Actual Expenses in Lieu of Per Diem
Foreign Travel Using Sponsored Funds
Passports and Visas
Countries Under State Department Advisory
Taxability of International Travel with Personal Use
Illustrations of International Travel Combining Business and Personal Expenses
Value-Added Tax (VAT) Reclamation
Travel Classifications - CONUS/O-CONUS, Domestic/Foreign
Terminology for foreign travel differentiates between domestic and foreign destinations, and reimbursement methods distinguish between CONUS (continental United States) and O-CONUS (outside continental United States). These terms are used throughout sponsored funding programs, and do affect the method of reimbursement.Travel Classifications
| CONUS Rates | O-CONUS Rates | |
| Domestic travel includes these areas: | 48 continental United States | Alaska, Hawaii, Canada, US Territories* |
| Foreign travel includes these areas: | None | All locations EXCEPT: Alaska, Hawaii, Canada, US Territories* |
| Reimbursement method | Meals and incidentals - Per diem reimbursement All other expenses - Actual reimbursement |
Meals, lodging, and incidentals - Per diem reimbursement All other expenses - Actual reimbursement (receipts required) |
When Trip Encompasses Time in Both Foreign and Domestic Locations
- If a trip is made with an interruption to conduct business at a domestic location prior to departing for a foreign location, then the portion of the trip to the domestic location is considered domestic travel, and the balance foreign travel.
- If a trip is made without an interruption to conduct business at a domestic location prior to departing for a foreign location, then the entire trip is considered foreign travel.
University Per Diem Reimbursement for Foreign Travel
Per diem for O-CONUS travel is a flat daily rate in lieu of actual subsistence expenses. The per diem rate includes meals, lodging, and certain incidentals (tips, local phone calls, currency conversion, and excess baggage costs). Receipts are not required for reimbursement of expenses included in the per diem. All other valid O-CONUS business expenses require receipts for reimbursement. The per diem rate to be applied each day is that of the lodging location for that night. The per diem rate tables are comprised of a lodging portion and a meals and incidentals expense portion (M&IE).Partial Per Diem for Foreign Travel
The need for prorating the meal per diem occurs when a traveler has some meals provided by a conference or host, or is on travel status for only a partial day, which is frequently the case for first and last day of travel status. Prorating the meal per diem will be based on a 24-hour day, and the meal allocation corresponds to the hours of the day a person is on travel status.| Time of Travel Status | Percent of Meal Per Diem | |
| Breakfast | Travel status from 12:01 a.m. to 10:00 a.m. | 20 percent of meal per diem for the location |
| Lunch | Travel status from 10:01 a.m. to 4:00 p.m. | 30 percent of meal per diem for the location |
| Dinner | Travel status from 4:01 p.m. to 12:00 a.m. | 50 percent of meal per diem for the location |
Top
If any meals are provided by a conference or host, then the meal per diem for that trip will be adjusted to correspond with the meals that were provided. In the event that all meals for a day are provided by a conference, business group meal, or another source, no meal per diem can be claimed for that day. However, the incidental amount, which varies by location, may still be claimed at the traveler's discretion.
Permission Required to Use Actual Expenses in Lieu of Per Diem
It may be permissible for an employee to claim all O-CONUS expenses on an actual basis in lieu of the per diem basis. If expenses are to be claimed on an actual basis, the traveler must explain in writing why the per diem basis is not suitable and obtain written approval in advance from the Budget Administrator. IRS regulations require that if the actual reimbursement method is approved, all expenses for the entire trip must be claimed on an actual basis and supported by receipts.Foreign Travel Using Sponsored Funds
The traveler must review the terms and conditions of his sponsoring agency concerning foreign travel before making arrangements. The Fly America Act requires use of a U.S. flag air carrier when traveling on a federally supported project.Top
Fly America Act
U.S. law, 49 U.S.C. 40118, known as the Fly America Act, requires travelers whose air travel is being financed by the U.S. government to use U.S. flag air carrier service for all international air travel when available. The Federal Travel Regulations Sections 301-10.131 through 301-10.143 define U.S. flag air carrier service and provide exception criteria for the use of non-U.S. flag air carrier service.Travelers using a non-U.S. flag air carrier requesting reimbursement from a U.S. government-sponsored project must qualify for an exception under the act. The traveler must complete the Fly America Act Exception form. The exception form must be signed by the traveler and a representative of Travel Services (or the contract travel agency that booked the original itinerary) and submitted with the travel settlement request. The traveler is encouraged to complete the exception form before booking the trip to ensure that the costs will be allowable on the federally sponsored project. The traveler must use a U.S. flag air carrier on every portion of the route where service is provided unless the traveler qualifies for a waiver. Note that cost and/or personal convenience are not included in the exception criteria used to determine the non availability of a U.S. flag air carrier. Travel Services Online cannot be used when exceptions to the Fly America Act are required.
Code-Shared Flights
Some flights may qualify as a U.S. flag air carrier if they are code-shared flights. The determining factor for identifying the use of a U.S. flag air carrier is the air carrier's designator code, which precedes the flight number (e.g., NW2222).Passports and Visas
Travel Services and the contract travel agencies provide assistance in obtaining passports and visas. Reimbursement is permitted for actual passport and visa fees for business travel; however, the expense may not be eligible as a direct cost to a sponsored program. Since a passport can be used for multiple trips over several years, the cost is not a project-specific expense and therefore is not allowed on most sponsored projects as a direct cost. Visas are generally required in relation to a specific trip and therefore the cost is generally allowable as a direct cost for a sponsored project.Countries Under State Department Advisory
The U.S. State Department maintains a list of countries for which travel advisories have been issued. Such advisories are listed on the State Department Web site.Plans for travel to countries under State Department Advisory must be reviewed with the Department of Risk Management to ensure proper insurance coverage for the traveler. Individuals traveling abroad must consult the sponsor's guidelines to ensure compliance, and obtain prior approval when required.
Top
Taxability of International Travel with Personal Use
International travel frequently consists of both business and personal components. According to the IRS, there is a taxability issue if BOTH of the following conditions are met:- The total period of the trip is longer than one week, and
- At least 25 percent of the trip is personal
For the purposes of calculating the percentage of business and personal time when a travel day consists of both business and personal time, the day would be classified as a business day. For purposes of this policy, sabbaticals are treated as business. For more information, review the following examples:
Illustrations of International Travel Combining Business and Personal Expenses
Trip with Taxable Element
An employee travels to London for 10 days, of which 7 days are business related and 3 days are personal; 70 percent of the trip is business and 30 percent is personal. The traveler is reimbursed for airfare and seven days of meals and lodging. The other three days of meals and lodging are considered personal and are not reimbursed. Since the trip was longer than one week and at least 25 percent personal, the employee will be taxed on 30 percent of the airfare considered personal under IRS regulations.Trip with No Taxable Element
An employee travels to London for 10 days, of which 8 days are business related and 2 days are personal; 80 percent of the trip is business and 20 percent is personal. The traveler is reimbursed for airfare and eight days of meals and lodging. The other two days of meals and lodging are considered personal and are not reimbursed. The cost of airfare, even though it is reimbursed to the traveler, is not taxable to the traveler since the personal component is not equal to or greater than 25 percent of the trip.Top
Value-Added Tax (VAT) Reclamation
Value-Added Tax (VAT) is a national sales tax on goods and services, which is levied by many countries around the world. In 1987, the European Union (EU) began offering refunds of VAT to foreign companies that travel to participating EU countries for business purposes.Depending on the country, VAT may be refunded on hotels, restaurants, car rentals, parking, gasoline, diesel fuel, transportation within the country, business entertainment, telecommunications, conferences, trade shows, training courses, and professional fees. Certain VAT is not refundable, such as on alcohol and laundry services.
The employee is responsible for completing the VAT Reclamation. A list of participating countries and reclamation information is available on the value-added tax page.
In the event a VAT refund is to be claimed, the employee is responsible for submitting original receipts to the Financial Officer, even if the per diem method is used for reimbursement.