For entrepreneurs, business trips are part of daily operations. They are used for contract negotiations as well as for professional training and development. A frequent question is to what extent the actual meal costs incurred during a business trip are deductible as business expenses.
Additional Meal Expenses
First, the sobering answer: for off-site activities, the actual meal costs incurred cannot be deducted to reduce profit. Only the lump-sum meal allowances under § 4 Abs. 5 Nr. 5 EStG in conjunction with § 9 Abs. 4a S. 3 EStG may be claimed. An input VAT deduction from these lump-sum meal allowances is not possible. Instead, an entrepreneur who is entitled to deduct input VAT may claim the input VAT from the actual costs.
Domestic Lump-Sum Meal Allowances
The amount of the lump-sum meal allowance depends on the duration for which the entrepreneur is away from their home and primary place of work for a business activity. A deduction of EUR 14 is permitted for each calendar day on which the entrepreneur is away from their home and primary place of work for more than 8 hours (§ 9 Abs. 4a Nr. 3 EStG). If there are several off-site activities on a single calendar day, the periods of absence are added together and it is reviewed whether the total exceeds 8 hours. For multi-day trips, a lump-sum meal allowance of EUR 14 is always granted for the day of arrival and the day of departure. This is granted even if the entrepreneur is not away from home and the primary place of work for more than 8 hours on the day of arrival or departure. For calendar days on which the entrepreneur is away from home and the primary place of work for 24 hours, EUR 28 per calendar day is granted.
Example 1:
An entrepreneur meets with business partners on Monday, 7 February, for contract negotiations. He leaves home on Sunday at 5:00 p.m. and returns on Thursday at 12:30 p.m. This results in the following lump-sum meal allowances:
Absence
Lump sum EUR
Sunday, absence 7 hours (day of arrival)
14
Monday, absence 24 hours
28
Tuesday, absence 24 hours
28
Wednesday, absence 24 hours
28
Thursday, absence 12.5 hours
14
Total additional meal expenses
112
Requirements for Input VAT Deduction on Actual Expenses
Since the entrepreneur is not entitled to deduct input VAT in connection with the lump-sum meal allowances (BFH judgment of 7 July 2005, V R 4/03), there is, however, the option of claiming an input VAT deduction from the actual costs incurred during the business trip (Abschn. 15.6. Abs. 1 UStAE). This requires a proper invoice on which the VAT is shown separately. The invoice must also identify the entrepreneur as the recipient of the service or, in the case of a partnership or corporation, the name of the company. This is because in the case of a partnership or corporation, only that entity is entitled to deduct input VAT. It is important to note that for a small-value invoice up to EUR 250 (§ 33 UStDV), the details of the entrepreneur or company are not required.
Example 2:
An entrepreneur takes a two-day business trip from Cologne to Munich. He spent EUR 166.60 (EUR 140 plus EUR 26.60 VAT) on his own meals. He can document the meal costs through various small-value invoices, which he paid in cash. He stayed in Munich at a cost of EUR 122. Breakfast is shown separately and included in the overnight price at EUR 15. The entrepreneur paid the hotel costs by debit card from his business account. The entrepreneur can claim the following amounts as business expenses:
- Deductible expenses
Lump-sum meal allowance EUR 14 x 2
28.00€
Accommodation costs (122€ – 15€ – 7€)
100.00€
Total
128.00€
- Deductible input VAT
Input VAT from the accommodation invoice excluding breakfast
7.00€
Input VAT from the hotel breakfast (15€ x 19/119)
2.39€
Input VAT from the remaining actual meal costs
26.60€
Total input VAT
35.99€
Frequently asked questions
Frequently asked questions
Are actual meal expenses incurred during business trips deductible as business expenses?
No. For external business activities, the actual meal expenses incurred cannot be claimed as profit-reducing items. Instead, only the statutory per diem meal allowances pursuant to § 4 Abs. 5 Nr. 5 EStG in conjunction with § 9 Abs. 4a S. 3 EStG are deductible as business expenses.
What are the 2024 domestic per-diem meal allowances in Germany?
For absences of more than 8 hours from home and the primary place of work, €14 per calendar day may be claimed. For a full 24-hour absence, the rate is €28 per day. For arrival and departure days on multi-day trips, a flat €14 applies regardless of the length of absence.
Is input VAT deduction possible from the per diem meal allowance?
No, the per diem meal allowance itself does not allow input VAT deduction (BFH ruling of 7 July 2005, V R 4/03). However, businesses entitled to input VAT deduction may claim the VAT from actual meal invoices, even if the costs are not deductible as business expenses for income tax purposes (Section 15.6 (1) UStAE).
What invoice requirements apply for input VAT deduction on meal expenses?
A proper invoice is required, showing VAT separately and naming the entrepreneur or company as the recipient of the service. For partnerships and corporations, only the company itself is entitled to deduct input VAT. For small-value invoices up to EUR 250 (§ 33 UStDV), the recipient does not need to be specified.
How are multiple business trips on the same day treated for the per diem meal allowance?
If several business trips take place on the same calendar day, the individual periods of absence are added together. The €14 per diem is granted if the combined absence exceeds the 8-hour threshold.