The way to a successful business is through the stomach. Many entrepreneurs use business meals as part of their relationship management - but they are only a tax advantage if they are correctly documented and accounted for.

Here are four facts about the tax deductibility of entertainment expenses:

Fact 1:
If you entertain business partners, you can deduct 70 % of the (reasonable) costs incurred as business expenses.
The extent to which the hospitality costs are reasonable depends on the individual case and depends on the occasion and industry.

Fact 2:
You may deduct 100 % of the VAT on the entertainment expenses as input tax. Input tax deduction is only excluded if the expenses are unreasonable.

Fact 3:
For invoices of more than EUR 250.00 including VAT, you must be explicitly listed as the invoice addressee as the entrepreneur providing the hospitality.

Fact 4:
In order to prove that the entertainment was for business purposes, you must document the specific reason for the business meal. General information such as "business meeting" or "background discussion" is not sufficient for the tax office. You must also record the place, date and participants of the entertainment.

👉 We not only support you in making the best possible use of your entertainment expenses for tax purposes. At WSB, we are also happy to assist you with all other tax issues and concerns: www.wsb-berater.com/kontakt

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