Taking your client out to dinner: is it tax-deductible?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
For income tax a business dinner is 80% deductible, or the part above the € 5,700 threshold; VAT on food and drink consumed on hospitality premises is never reclaimable.
- You pick one method per year for all your mixed costs: 80% deduction or everything above € 5,700.
- The tipping point sits at € 28,500 of mixed costs; below that the 80% method is more favourable.
- For a BV the deduction percentage is 73.5% instead of 80%.
- If lunch is delivered to your own office there is no hospitality consumption, so the VAT can be deductible.
You take a good client out to a restaurant. Great evening, new project secured, and then the bill arrives. The obvious question: can you deduct this dinner from your taxes? The short answer is yes, but not entirely and not automatically. This article explains how it works in 2026, with a calculation example.
Why is a business dinner only partly deductible?
The tax authorities see a dinner with a client as a mixed cost. It's partly business, because you're maintaining a relationship or working on a project. But there's also a personal element, because you'd need to eat anyway. Because of that personal part, you can't deduct the costs in full.
These mixed costs include business dinners and lunches, receptions, networking events and business gifts. Conferences, seminars and study trips fall under them too.
Note the distinction with costs that are purely private. A sandwich you buy alone between two appointments is not a business expense, however busy your day was. A client, supplier or business contact must be present.
How much can you deduct in 2026?
For income tax you may choose between two methods. With the 80% method you deduct 80 per cent of your mixed costs and cover the remaining 20 per cent yourself. With the threshold method you only deduct the amount above a fixed threshold. In 2026 that threshold is 5,700 euros. Which method works out better for you is calculated in representation costs: threshold or 80 per cent.
You choose one method per year and apply it to all your mixed costs for that year together. So you cannot switch per dinner.
Worked example: € 2,000 of business dinners
- 80% method: 80% of € 2,000
- € 1,600 deductible
- Threshold method: everything above € 5,700
- € 0 deductible
- At € 40,000 of mixed costs the threshold method would win
- € 34,300 against € 32,000
Result: Below € 28,500 of mixed costs the 80% method is more favourable. For virtually every freelancer that is the right choice
Can you reclaim the VAT?
No. VAT on food and drink consumed on hospitality premises is excluded from deduction by law. That applies even when the visit was entirely for business and the invoice is properly in your company's name. You meet the same exclusion with breakfast at your hotel.
It hinges on consumption on the premises. If you have lunch delivered to your own office for a meeting, that is not hospitality consumption and the VAT can be deductible. If you regularly provide food and drink to staff, you end up at the work-related costs scheme.
| Situation | Costs | VAT |
|---|---|---|
| Dinner or lunch with a client in a restaurant | 80% deductible | Not deductible |
| A sandwich for yourself on the road | Not deductible, private | Not deductible |
| Lunch delivered to your own office for a meeting | 80% deductible | Deductible |
| Business gift in the form of food or drink | 80% deductible | Limited, watch the € 227 threshold |
| Coffee and tea at your own workplace | Business, an ordinary expense | Deductible |
Do you have a BV?
Then it runs through corporate tax and the deduction percentage is 73.5 per cent instead of 80 per cent. The threshold method works the same in corporate tax: 5,700 euros or 0.4 per cent of total wages if that is higher. So as a director-shareholder too, you pay part of every business dinner yourself.
How do you record it in your bookkeeping?
You apply the deduction limit once a year at the year-end close. During the year you simply book the costs in full to a separate ledger account, so the total is easy to find at the end.
- Ask for an invoice in your company's name, not a till receipt.
- Note on the receipt who you dined with and the business purpose. Two words will do.
- Book the amount including VAT as entertainment costs, since you do not reclaim that VAT.
- At the year-end close, apply the 80% rule or the threshold to the total.
- Keep the documents for seven years; see record retention.
Frequently asked questions
How much of a business dinner is deductible in 2026?
For income tax 80 per cent, or the amount above the 5,700 euro threshold if you choose the threshold method. For a BV it is 73.5 per cent. The VAT is not deductible.
Which method should I choose?
If you stay below roughly 28,500 euros of mixed costs a year, the 80% method is more favourable. Above that the threshold method wins. So for most freelancers the 80% method is the right choice.
May I reclaim the VAT on a business dinner?
No. VAT on food and drink consumed on hospitality premises is excluded from deduction by law, even with a fully business purpose. Delivery to your own office is a different matter.
Is a lunch I eat alone deductible?
No, that is private. You have to eat anyway, whether you work or not. Only with a client, supplier or business contact present does it become a mixed cost that is partly deductible.
Must I write down who I dined with?
There is no statutory form, but in an audit you must make the business nature plausible. A name and the topic on the receipt is the easiest evidence, and it takes five seconds.
Does the limit also apply to a course or conference?
Costs of conferences, seminars and study trips do fall under the same limit. A professional training course does not: that is fully deductible as an ordinary business expense.
Sources
- Threshold for limited deductible costs 2026: € 5,700Belastingdienst · belastingdienst.nl
- Business costs and mixed costsBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
