Mixed expenses (business lunch)

Mixed expenses are not fully tax-deductible

Mixed expenses are expenses that are not fully businesslike, but also not entirely private either. Therefore, they are only partly deductible. Here, we will give some examples of the limited deductible expenses.

  • Food and drinks. Everyone has to eat and drink; it is not a standard deductible. But a business lunch has a business element and, therefore, is partly deductible.
  • Representation expenses (business gifts, receptions, parties, etc.). You incur these costs to represent your company, but do not confuse this with advertising costs (these are 100% deductible). Representation costs also fall partly in the private sphere, such as a company party.
  • Congresses, seminars, excursions, etc. Participation in a congress belongs to mixed expenses and is not part of necessary study costs.
  • Cost of travel and lodging. A maximum of € 1,500 applies to travel and accommodation costs.

Mixed expenses are deductible in two ways

There are two ways to deduct mixed expenses. The Dutch tax authorization allows you to choose between the threshold and the 80/20 scheme.

Option 1 | the threshold

The first option to deduct mixed expenses is to use the threshold. This option is only fiscally advantageous if you incur a lot of limited deductible costs. In 2022, the threshold is €4,800 (in 2021, this was €4,700).

Option 2 | 80/20 regulation

Self-employed people often do not reach the threshold. That is why the 80/20 scheme is created. This means that 80% of the mixed expenses are deductible, and 20% is for your own account.

Determine which option is fiscally advantageous

For most self-employed professionals in the Netherlands, the 80/20 scheme is most beneficial. We explain this in the example below.

  • Travel costs: €2,000
  • Business dinners: €1,800
  • Promotional gifts: €600
  • Costs for a reception: € 3,500

The total annual mixed costs amount to €7,900. However, travel and accommodation expenses are only deductible up to € 1,500, making the total amount € 7,400.

Option 1 (threshold): you may deduct €2,600 (7,400 – 4,800) from your profit.

Option 2 (80/20 scheme): in this case, you may deduct €5,920 (0.8 x 7,400) from your profit. In this case, this is the most advantageous option.

We help with your Dutch taxes

Speak directly with one of our tax advisors

Team TaxSavers

Are you an entrepreneur (zzp) in the Netherlands and could you use some help with your Dutch taxes? We are happy to help you! You can contact us using our details mentioned below.

 Fill in our contact form, and we will get in touch

Send your message to + 31 20 – 2170120

Call us on +31 20 – 2170120