# Can I claim Business Meals and Entertainment (Gemengde Kosten) as a business expense in Netherlands?

**Partially claimable.** 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.

Typical amount: 80% of actual costs. Example: EUR 500 restaurant bill (ex BTW) = EUR 400 deductible, EUR 100 permanently disallowed. At 25.8% VPB, the 20% disallowance costs approximately EUR 25.80 per EUR 100 of the disallowed amount.

## 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.

Source: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/winst/

## Related expenses

- [Motor Vehicle and Company Car (Bijtelling)](https://accounts-os.com/nl/expenses/motor-vehicle-nl)
- [Advertising and Marketing (Reclame- en Marketingkosten)](https://accounts-os.com/nl/expenses/advertising-nl)