A client lunch, a Friday afternoon drink with the team, or sandwiches during a long meeting — food and drinks are part of doing business. But from a tax perspective, not everything that’s pleasant is also deductible.
So when can you actually reclaim VAT on meals and entertainment? And where exactly are the limits?
The answer lies not so much in what or where you eat — but why. The purpose and setting determine whether the VAT is deductible. Let’s break it down.
dining out? VAT usually isn’t deductible
In most cases, VAT on meals and drinks consumed in restaurants, bars, or hotels is not deductible — even if the expense is clearly business-related. Think business dinners, team drinks in a bar, or breakfast at a hotel while travelling for work.
The Dutch tax authorities see these as “hospitality services” — and VAT on those is generally excluded from deduction.
You can still record the costs in your accounts as representation expenses, but reclaiming the VAT is not allowed.
when is VAT still deductible?
There are some exceptions where VAT can be reclaimed — if specific conditions are met. These include:
Groceries for a shared office lunch, bought and consumed on-site
Meals during overtime or long meetings, with a clear business purpose
Catering at business-related trainings, seminars or events
Food and drinks charged through to a client, such as during events or projects
Meals provided in your own company canteen or kitchen, where a VAT flat rate (forfait) applies
In these situations, VAT is generally deductible — as long as the business nature is clear and well-documented.
what if it’s a gift?
Giving a client a bottle of wine or a gourmet snack box? Then different rules apply. You may only deduct the VAT if the total value of all gifts to that client stays below €227 per year. Go over that limit, and the VAT deduction is off the table.
in practice: receipts, purpose, and proof
In practice, it all comes down to documentation. You’ll need to clearly demonstrate the business purpose of the expense — who it was for, why it was necessary, and in what context.
So: keep those receipts, note the purpose, and be clear in your records.
are you confident about your VAT deductions?
VAT on food and drinks lives in a grey area — especially when business and pleasure overlap. A small mistake can have real tax consequences.
Not everything is deductible — but it’s always worth checking.