Can I Claim Business Meals and Entertainment (Gemengde Kosten) as a Business Expense in Netherlands?
Business meals and client entertainment costs are 80% deductible for Dutch VPB. The remaining 20% is a permanent disallowance under the gemengde kosten rule (Article 3.15 Wet IB applied via VPB). There is no monetary cap; the 80% rule applies to restaurant meals, client hospitality, and similar entertainment.
What Belastingdienst (Dutch Tax and Customs Administration) says
Wet IB 2001 Art. 3.15 (via Wet VPB 1969 Art. 8): 80% deductibility rule for mixed costs (gemengde kosten) including meals and entertainment. WKR Wet LB 1964 Art. 31a: staff entertainment within vrije ruimte (1.92% of wage bill up to EUR 400,000) is not taxed as a benefit.
When you can claim
- Restaurant meals with clients, suppliers, or business contacts (80% deductible)
- Corporate hospitality including sports events and concert tickets for clients (80% deductible)
- Canteen meals provided to staff at the workplace within WKR limits (fully deductible)
- Food and drinks consumed at a business location during meetings such as coffee and sandwiches in the office (fully deductible)
When you cannot claim
- The mandatory 20% disallowance on meals and entertainment (this 20% is always added back regardless of business purpose)
- BTW on restaurant bills and client entertainment where a personal enjoyment element exists (BTW-forfait restriction applies)
Good to know
Pro tip: Keep all receipts and note the business purpose and attendees on each receipt. Use accounting software that automatically applies the 80% rule to transactions coded as entertainment, avoiding a year-end manual adjustment.
Important: Staff Christmas parties and staff outings should be processed through the WKR vrije ruimte rather than as the 80% entertainment category. The WKR free allowance is 1.92% of total wage bill (up to EUR 400,000) plus 1.18% above. Exceeding the vrije ruimte triggers 80% eindheffing (final levy) paid by the employer.
Stop guessing what you can claim in Netherlands
AccountsOS automatically categorises expenses with Belastingdienst (Dutch Tax and Customs Administration)-aware rules and tells you exactly what is claimable.
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