28/01/2019

Snacks and drinks at a company party? An advertising cost, so also deductible!

If you are wondering whether you can record the costs of drinks and catering during an open day or business event as a cost? Yes, that’s possible. VAT is now fully deductible as a publicity cost.

The general rule.

The general rule is that there is no VAT deduction possible on the purchase of food and beverages, but an exception is made during an open day or business event. The purpose of these occasions is to promote the sale of products/services which make this part of advertising.

A publicity cost is VAT deductible.

The Minister of Finance has declared to be in agreement that the cost of snacks  and drinks in the context of an open day or similar event, which promotes the sale of products or services, is to be considered as a publicity cost not only for VAT but also for the tax authorities. The VAT is therefore fully deductible.

Pay attention to catering.

Catering is important and has to be chosen according to the target group and the type of business event. Choose your caterer carefully, because even during professional occasions the way to the heart is through the stomach. We know the way and will happily help you in your search for the appropriate caterer.