Are catering costs billable or deductible?
Many freelancers work in cafes and / or spend days at workplaces or in catering establishments. The myths surrounding lunch costs, coffee and corporate catering expenses are numerous, so we would like to explain the various considerations. Do you have a Plus subscription? Then we will of course process the receipt for you and the explanation is only for clarification.
Only enter if it's really business-related
The costs you incur while working in a café do not fall under a business expense item. It only counts if you have a business meeting/appointment (or some sort). Even for these costs, there is a deduction restriction (for food, drinks, stimulants and representation).
VAT 0%
VAT on dinners and food costs (aka catering) is never deductible. You therefore enter the amount including VAT and any tips. Make sure that you always attach the regular VAT receipt and not (only) the pin receipt. After all, this is not a receipt with a VAT-specification. You do include the pin print if you have given a tip and want to give this up for business.
The Bookie Webapp sets the VAT percentage to 0%, even if there is VAT on the receipt. This means that you enter the total amount for amount excluding or including VAT and select 0% for VAT.
Private Correction
The Tax Authorities say that in every case part of the costs are for personal use. That's why you can only 'declare' 80%. To make it easy, you just enter the whole amount. We will make this correction for you in the fourth quarter.
Decrease profit
Now you may wonder why you would enter costs if the VAT is not deductible. Here you can read how the costs you incur affect the income tax you pay after the close of the financial year.