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Wining and Dining for Business Purposes

Up until now, German law has only allowed you to write off 70% of your entertainment expenses as deductible expenses, and the same went for VAT. Now you still have to treat 30% of your wining and dining costs as income, but now you can write off VAT in full. The BFH declared in its judgment of February 10, 2005 (re V R 76/03) that this law contradicts the superseding 6th EU directive. This ruling concerns all tax periods since 1999. So now it is your turn to collect from the tax office. Contact your attorney or tax advisor if you need any help collecting. Do not forget that anything you pay to prepare your taxes is deductible in full from your profits.




Published on the old CMS: 2006/7/26
Read on the old CMS till November 2008: 1,119 reads

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Last Updated on Monday, 09 February 2009 18:52