Additional Catering Expenses: Significance and Application in Tax Law
Additional catering costs refer to additional costs for catering for employees who work outside their regular workplace during official work. These expenses usually occur when employees are unable to provide themselves with inexpensive supplies during a business trip, for example through self-catering or at their company's canteen.
What exactly is the additional meal cost?
The additional food costs arise when employees depend on external catering options due to business trips or other official obligations. Since this usually entails higher costs, these can either be reimbursed by the employer as a lump sum or claimed by employees for tax purposes as advertising costs.
Entitlement to additional food expenses: When does it exist?
An employee is entitled to additional food expenses if he works more than eight hours away from his home and first place of activity for professional reasons. Even in the case of business trips lasting several days, regardless of the length of absence on the day of arrival or departure, the additional expenses can be claimed as a lump sum.
One-day trips over 8 hours: A lump sum is available if the absence lasts longer than 8 hours.
Multi-day trips: The additional food expenses can be claimed both for full days and for the day of arrival and departure.
Additional catering costs in practice: flat rates and billing
Instead of determining the actual food costs, standardized lump sums are used for additional catering expenses. These packages depend on the length of absence and the country in which the business trip takes place. There are special daily rates for trips abroad, which are regularly updated by the Federal Ministry of Finance.
Current packages:
- One-day trips under 8 hours: 0€
- One day trips (8-24 hours): 14€
- Multi-day trips (arrival/departure day): 14€
- Full extra days (24 hours): 28€
Tax Treatment of Additional Food Expenses
Companies can deduct the additional food expenses they reimburse their employees as part of business trips as operating expenses. For employees, the amount received is tax-free as long as it remains within the fixed lump sums. If the employer provides food, for example by providing meals, the entitlement to the lump sum is reduced proportionally:
- Breakfast: 20% discount
- Lunch: 40% discount
- Dinner: 40% discount
Indicate additional food expenses correctly in the tax return
For companies, this expenditure is included in the YOUR annex included under “limited deductible operating expenses.” Employees indicate the additional food expenses in their tax return under “Travel Expenses” under “Travel Expenses.” It is important to note that provided meals reduce the entitlement to the food allowance.
Conclusion
The additional food costs enable employees to compensate for the additional costs of eating and drinking during official absences. The Lump Sums offer an easy way to take these expenses into account for tax purposes without major administrative burdens and ensure that the additional costs are fairly compensated.