Deduct restaurant costs

Good news: as a self-employed person, you can deduct restaurant costs!

It may well be the most popular and best-loved deductible expense among self-employed people in Belgium: restaurant costs.

Inviting (future) clients, suppliers or staff out for a meal? Then you can deduct these restaurant costs as a business expense. It doesn’t matter whether it’s a business lunch or a business dinner.

Conditions for deducting restaurant costs

Unfortunately, the full bill is not tax-deductible. Only 69% of restaurant costs can be deducted. That 69% rule exists because the tax authorities assume that you (hopefully) enjoyed the meal yourself too. 😉

A few other conditions also apply:

• The dinner or lunch has a purely business purpose, such as a meeting, a client visit or a team dinner, and contributes to the growth of your business.
• Only restaurant costs incurred during the working week qualify. Restaurant visits at the weekend or on public holidays (often private) raise suspicion with the tax authorities. …Unless you can show that it really was a business expense. 😉
• Write the reason for the restaurant visit and who was present on the back of the receipt. That way you can easily prove it was a business expense in the event of a tax audit. In the Accountable app, you can also add a note when booking the expense.
• Even though VAT on restaurant costs is usually not deductible, it’s still best to ask for a VAT receipt for your bookkeeping.

⚠️ A cosy dinner with friends, family or your partner is not accepted as a business expense. Also be careful with weekends and specific holidays, such as Valentine’s Day or Mother’s Day.

You have been warned. 😉

What about VAT on restaurant costs?

Even though most restaurant bills nowadays mention “VAT ticket”, it is still impossible to reclaim the VAT.

💡 Although (as always) there are a few exceptions. In some cases you can reclaim VAT on restaurant costs, for example if you work in the hospitality sector yourself.

Restaurant visit vs. meal delivery

Meal deliveries (as part of your work) are not considered classic “restaurant costs”.

They fall under so-called “reception costs“. Meal deliveries are only 50% tax-deductible and not deductible for VAT.

What about team dinners?

The meal you enjoy with your team during a team activity (for example at Christmas or to kick off a holiday period) is 100% deductible from your taxes. The VAT remains 0% deductible.

In such cases, you do need to make sure that:

• such an activity takes place no more than once a year;
• the activity is open to all employees;
• and a minimal budget per employee has been set.