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Bookkeeping & receipts · 6.6

Business Meals: How Does the GmbH Deduct Entertainment Expenses?

Short answer

If you invite clients or business partners to a meal, your GmbH can deduct 70% of the costs as a business expense (Betriebsausgabe). It receives the input tax (Vorsteuer) back in full. The prerequisite is a properly completed entertainment receipt (Bewirtungsbeleg).

Key points

  • The entertainment receipt must include: location, date, participants, occasion, and amount of the costs.
  • The restaurant receipt must be machine-generated. For amounts of €250 or more, the name of your company must be stated on it.
  • A specific business occasion must be identifiable, such as "project meeting website relaunch". "Business meal" alone is not sufficient.
  • Tips count toward the total if noted on the receipt.
  • A meal solely with your own employees does not count as business entertainment of business partners. Different rules apply here, such as for company celebrations.
  • Entertainment expenses are booked to a dedicated account.

Figures & thresholds (as of November 2026)

  • Business expense: 70% of reasonable costs
  • Input tax: 100%

Legal basis

§ 4 Abs. 5 Satz 1 Nr. 2 EStG§ 15 Abs. 1a UStG

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