Mode expense deduction lunches and dinners

Deductions for business lunches and dinners compete the recovery of VAT only in the event that it is working lunches, or at the expense of advertising and propaganda, and not if the costs are configured such expenses.

As regards, therefore, working lunches, ie meetings with retailers in the performance of the ratio of concessions; meetings with customers (potential or actual) for the activity of promoting the sale, dating advice, l ' tax is deductible because they are costs inherent in the business activity, and if the costs are among those representing the non-deductibility continues.

For representation is understood, for example, relationships with other firms to create partnerships or even meetings with suppliers of goods and services into a number of projects that are part of the contract commissioned. The difference between the first and the second category consists of fate that if the costs of advertising and propaganda are directed to advertise a specific product and that their aim is to increase sales directly or indirectly, those of representation serve 'only' to provide a positive image of the company and its business, as well as to promote the acquisition and consolidation of its prestige, do not put into practice interventions directed toward the company.

 

 

11/09/2008

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Translated via software

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Source:

Italian version of ReteArchitetti.it