You are considering organizing a meal with your staff and wondering if the costs can be tax-deductible. Generally, restaurant expenses are deductible up to 69%. However, there are exceptions. Certain events such as Saint Nicholas, Christmas, or New Year celebrations can be 100% deductible if they are considered collective social benefits, involving the invitation of the entire staff.
It is crucial to note that the full deduction is applicable to only one event per year and only for restaurant and reception expenses. A practical tip is to choose the most expensive celebration if you organize multiple events during the fiscal year.
Regarding the venue, whether it’s a rented hall or within the company premises, the costs remain 100% tax-deductible under the same conditions. You also have the option to hire a caterer, but the VAT on food and beverages is generally not recoverable. However, if the caterer only provides food and beverages without serving, the VAT can be fully recovered.
Another practical tip is to purchase the meal ingredients and beverages yourself. In this case, the VAT related to your purchases can be fully recovered, except for the VAT on the catering service, which is not recoverable. In summary, the costs associated with a single staff event during the year-end, open to all employees, are 100% tax-deductible.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
