How can I correctly deduct the input tax for business meals?
March 2, 2024 | 30,00 EUR | answered by Marco Schottmann
Dear tax consultant,
My name is Georg Müller and I am a self-employed entrepreneur in the hospitality industry. In my business, there is a regular need to have business meals with potential customers or business partners. Naturally, there are costs involved that I would like to deduct for tax purposes. However, I am unsure about how to correctly deduct the input tax for these business meals.
Currently, I regularly have business meals and carefully keep the receipts for them. Now I am wondering if I can deduct the input tax for these expenses in full or if there are specific requirements I need to meet. I am also concerned about whether there are specific forms or proofs that I need to submit in order to correctly claim the input tax.
My main worry is that as a self-employed individual in a sensitive industry, I want to avoid making tax mistakes. I want to make sure that I am taking full advantage of all possibilities to correctly deduct my input tax and not suffer any disadvantages.
Therefore, my specific question to you is: How can I correctly deduct the input tax for business meals? Are there specific regulations or requirements that I need to consider? What evidence is necessary to correctly declare the input tax? I would like to know the specific steps I need to take to fulfill my tax obligations correctly and optimize my input tax deduction.
Thank you in advance for your support.
Kind regards,
Georg Müller
Dear Mr. Müller,
Thank you for your inquiry regarding the deductibility of input tax for business meals in your hospitality industry. As a tax advisor, I can assist you in correctly deducting the input tax and avoiding tax errors.
In principle, you can deduct the input tax for business meals in full, as long as they are business-related and a receipt is provided. Business meals with potential customers or business partners are generally considered business expenses and therefore deductible. It is important to keep the receipts carefully in order to be able to prove the deductibility in case of a tax audit.
However, there are certain conditions you must adhere to in order to correctly deduct the input tax for business meals. Firstly, the costs must be within a reasonable range and must not be claimed as unreasonably high representation expenses. Additionally, the expenses must have actually been incurred and have a direct connection to your business activities.
In order to correctly deduct the input tax for business meals, make sure that the receipts contain all necessary information, such as the name and address of the restaurant, the date of the business meal, the type and quantity of food and beverages, and the total amount including VAT. These details are important for properly documenting business expenses.
Regarding the evidence for the deductibility of input tax for business meals, properly issued receipts are generally sufficient. There are no specific forms or additional evidence that you need to submit, as long as the receipts contain all necessary information and comply with tax regulations.
In summary, you can deduct the input tax for business meals in full, as long as the expenses are business-related and the receipts are properly issued. By keeping the receipts carefully and documenting the necessary information, you can ensure that you fulfill your tax obligations correctly and optimize the deduction of input tax.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Marco Schottmann
Tax Advisor
