Essentially, all food, drink and other service costs associated with these meetings are business entertainment expenses. These costs are not tax-deductible and do not qualify for a VAT deduction. What does that mean? Business lunches do not count as expenses that reduce your tax base and therefore your tax. If you are a VAT payer, you cannot include the VAT on these receipts in your return. 😊
If you leave a tip at the restaurant, that amount also appears in the accounts, but it is treated in the same way as payment for the business dinner itself. 😊
If you are self-employed, it is not even worth finding these receipts and bringing them to your accountant, because they will not affect your tax base. But if you operate through a company, it is better to include these expenses in the accounts because you pay them from company funds. This is more advantageous than paying for business meetings with your own already-taxed money. 😊
If you are unsure, do not hesitate to get in touch and we will look at it together. 🙂