Regarding expenses incurred by an entrepreneur, they must first determine whether they are incurred for business or personal reasons. Whether certain expenses are necessary for the business is primarily determined by the entrepreneur and their subjective judgment. For most expenses, this will be immediately clear and not lead to discussion. If the personal nature predominates, the expenses cannot be charged to profit and constitute a withdrawal. Disputes can arise particularly with mixed expenses, such as food and beverage costs.<\/p>\n\n\n\n
This is what the following taxpayer experienced. The man had been working as a consultant from his sole proprietorship since 2012. In 2012, 2014, and 2015, he had several long-term assignments. He always chose to rent temporary accommodations near these assignments, where he stayed from Sunday evening through Friday. In 2012, he rented a hotel room at the nearby conference center for six months, in 2014 he rented a studio in Amsterdam, and in 2015 he rented a room in Tilburg. In his income tax returns, he deducted the costs of breakfast, lunch, and dinner (food expenses) from his profit. He then applied the deduction restriction for mixed expenses.
The inspector disagreed and rejected the food expenses incurred in 2014 and 2015. According to him, these expenses were not business-related, but entirely private, because they related to a basic necessity. In that case, the deduction restriction for mixed expenses no longer applies. The inspector also indicated that it may not have been correct that the food expenses incurred during the hotel stays were accepted.<\/p>\n\n\n\n
There is no dispute about the business nature of the accommodation expenses during these periods. This is why the consultant argues that the food and beverage expenses are also business expenses. The Hague Court of Appeal disagrees (ecli:nl:ghdha:2022:513). The costs of breakfast, lunch, and dinner are not incurred as a result of the man's work. Because there is a need to eat and drink, these costs are predominantly private in nature. They are therefore personal expenses and not business expenses. The fact that the man incurred higher costs than when he stayed at home was due to his personal choice to eat out most of the time. The additional costs associated with this are also not deductible. This might have been different if the man had dined with colleagues or business associates, but he did not adopt that position.<\/p>\n\n\n\n
The man also argued that he should be treated the same as an employee who receives a meal from his employer. In this case, the employer can reimburse the meal tax-free under the work-related costs scheme. The court rejected this appeal to the principle of equality: an entrepreneur and an employee are not in the same circumstances and are therefore not equal cases.<\/p>\n\n\n\n
If the costs could have been considered business expenses, the deduction limitation would indeed have been a factor. Food, beverages, and luxuries fall under the deduction limitation for general expenses. This includes business meals (including tips), food and drink while traveling (for business purposes), coffee, tea, soft drinks, cigarettes, etc. For a self-employed person with a self-employed person (IB), these costs are deductible under 80%, but they can also opt for a fixed non-deductible amount of \u20ac4,800. The latter is only advantageous if the limited deductible costs total more than \u20ac24,000.<\/p>\n\n\n\n
bz advice<\/strong><\/p>\n\n\n\n Assess in advance whether food expenses can be considered business expenses. For example, ensure that lunch is shared with a business associate. Only then can the deduction restriction for mixed expenses be applied. Onttrekkingen Van uitgaven die een ondernemer doet, moet hij in de eerste plaats bepalen of hij deze vanuit zakelijke overwegingen doet of vanuit persoonlijke overwegingen. Of het noodzakelijk is om bepaalde kosten voor de onderneming te maken, wordt voornamelijk bepaald door de ondernemer en zijn subjectieve inzicht. Bij de meeste uitgaven zal dit direct duidelijk … Read more<\/a><\/p>","protected":false},"author":1,"featured_media":468,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"%%post_title%% - %%sitetitle%%","_seopress_titles_desc":"Van uitgaven die een ondernemer doet, moet hij in de eerste plaats bepalen of hij deze vanuit zakelijke overwegingen doet of vanuit persoonlijke overwegingen. Of het noodzakelijk is om bepaalde kosten voor de onderneming te maken, wordt voornamelijk bepaald door de ondernemer en zijn subjectieve inzicht. ","_seopress_robots_index":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post-466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nieuws"],"_links":{"self":[{"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/posts\/466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/comments?post=466"}],"version-history":[{"count":2,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/posts\/466\/revisions"}],"predecessor-version":[{"id":469,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/posts\/466\/revisions\/469"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/media\/468"}],"wp:attachment":[{"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/media?parent=466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/categories?post=466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mrbookkeeper.nl\/en\/wp-json\/wp\/v2\/tags?post=466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The deduction restriction for mixed costs also applies to corporate income tax. In that case, \u20ac73.5% is deductible for the costs. The entrepreneur can also opt for a non-deductible amount of \u20ac0.4% of the combined taxable wages of the entity's employees, with a minimum of \u20ac4,800.<\/p>","protected":false},"excerpt":{"rendered":"