VAT on meals can be a significant cost for companies. A single meal does not represent a significant amount. But when you add up all the money that a company ends up spending on meals, the professional meals for clients and employees, The amount of money that is collected is considerable, so it is important to account for it correctly in order to be able to carry out its refund by the Tax Agency.
VAT on meals is Value Added Tax which applies to most consumer goods and services, including food. However, in the case of certain VAT, these can be deducted. In other words, claiming back from the tax office the money paid through this tax, the deduction of VAT on meals can be a significant amount for businesses.
However, it should be noted that not all VAT, including VAT on meals, can be deducted. In this case, only the VAT on meals that is associated with the business activity can be refunded. According to the Law on Value Added Tax (LIVA), In the case of a business or professional person, VAT cannot be deducted by that person from any consumption which is not linked to the company's business activity. However, some examples of such activities that are deductible would be, for example, meals with clients, or meals for employees who are away from the office.
However, it should also be borne in mind that in order to be able to deduct VAT on meals and other business-related expenses, it is essential to submit the corresponding documentation to the Tax Agency. In the case of VAT on meals, it is sufficient to present the invoice or ticket corresponding to the meal from which the VAT is to be deducted. To do this, it is necessary to keep this documentation and, when the time comes, submit all the corresponding invoices to the tax office so that it can refund the tax charged.
One of the problems with VAT refunds for meals and other business-related expenses is that, as invoices or receipts are required to be submitted, they have to be in the same format as the VAT refund. correctly stored and accounted for. In fact, if an invoice is lost and cannot be submitted to the tax office, the corresponding VAT cannot be deducted and is therefore an unnecessarily added expense.
This is precisely why it is becoming increasingly common for companies to use a variety of applications and tools to managing expenditure correctly The VAT on meals and similar expenses can be deducted correctly when the time comes.
In this respect, one of the most convenient ways for companies to manage the payment of meals to employees is to Ticket Restaurant. Thanks to this meal card, all food expenses are registered and centralised in one place. Ticket Restaurant, The new system, avoids having to advance cash to employees, as well as limiting the use of the card to a specific timetable and schedule if necessary. In addition, it also makes it as easy and convenient to use as possible, as payment can be made by card or directly from the mobile phone thanks to Google Pay, Apple Pay and Samsung Pay.
