Business dinners and hospitality costs: what you can deduct

Can you deduct a business dinner?

Yes, but not in full. Meals, drinks and outings with clients or business contacts are limited deductible costs (beperkt aftrekbare kosten). They belong to your business, but they also have a private side. That is why the law sets a limit.

Limited deductible costs include:

• hospitality (representatie), such as a lunch, dinner or drinks with a client
• conferences, seminars and study trips
• client gifts in the form of food, drink and stimulants

How do the threshold and the 80% rule work in 2026?

For income tax you choose one of two methods each year. You pick the method that works out best for you.

For most freelancers the 80% rule works out better. If you spend less than €5,700 a year on dinners and drinks, the threshold gives you no deduction at all.

Can you reclaim the VAT on a business lunch?

No. You may not deduct as input VAT the VAT on food and drink you consume in a restaurant, café or other hospitality venue. That also applies if you bring a client. For income tax the lunch therefore counts including VAT.

There is one exception. If you pass the food and drink on to a client, with VAT on your invoice, then you may deduct the VAT.

An example: lunch with a client

Youssef is a web developer. In March he had lunch with a client to talk through a new project. The bill is €87.20: €80.00 plus €7.20 VAT at 9%.

Over the whole year Youssef spends €2,400.00 on dinners and drinks. With the threshold he deducts nothing, because that amount is below €5,700. With the 80% rule he deducts €1,920.00. So he chooses 80%.

Are client gifts deductible?

A client gift in the form of food, drink or stimulants, such as a bottle of wine or a Christmas hamper, falls under the same limited deduction. A separate limit applies for VAT. You only deduct the VAT on gifts if you spend no more than €227.00 excluding VAT per recipient per year.

An example. You give a regular client a wine box at €60.00 excluding VAT. That is less than €227, so you may deduct the VAT. For income tax the €60.00 falls under limited deductible costs.

What do you write on the receipt?

Write on the receipt or in your records who you ate with and why. That way you can show later that it was business. Keep the receipt for seven years and book it to a separate account for hospitality costs. At the end of the year you can easily add up the total, for your income tax return.

Note. Food and drink for yourself, with no business reason, is private. Lunch on a normal working day does not count as a business cost.