Are all meals expenses business entertainment expenses? The answer is not necessarily. Enterprises in the occurrence of reception fees, business meals, meeting meals and other costs should be included in what kind of accounting account? Mandel Enterprise Services has prepared a detailed explanation for you today.

Misconception 1:

All meals are business hospitality expenses

Correct: In the normal operation of the enterprise, the meal costs are generated by different reasons, many enterprises will be meals and business hospitality costs are equal. In fact, business hospitality includes meals, but meals are not always business hospitality.

For example:

◎ Because of the need to carry out business, entertaining customers meals, accounting for "hospitality";

◎ Employee meals on business trips, in the standard meal costs, accounting for "travel expenses";

◎ The cost of the standard meal, accounting for "travel expenses";

This is the first time in the history of the world that we have been able to find out the cost of a business trip, but we are not sure if it is a good idea.

◎ Employee canteen meals, overtime meals, accounting for "employee welfare expenses";

◎ Enterprise organization staff vocational and technical training, meals during the training period, accounting for "employee education expenses";

◎ Meal expenses incurred during the preparation of the enterprise, accounting for "start-up costs";

◎ Employee meal subsidies in the form of cash, accounting for "start-up costs";

◎ Employee meal subsidies, accounting for "start-up costs";

◎ Cash form of employee meal subsidies in the form of cash for employees, accounting for "wages and salaries";

◎ Trade unions to organize employee activities, activities during the meal expenses, accounting for "trade union funds";

◎ Enterprises to convene the board of directors, the board of directors during the meal expenses, accounting for "trade union funds";

◎ Enterprises to convene the board of directors, the board of directors during the meal costs, accounting for The company held a board of directors, the board of directors during the meal costs, accounting for the "board of directors fees";

◎ film and television enterprises in the filming process "film and television drama meals", accounting for the film and television costs.

Misconception 2:

After the meal issued catering invoices, must be issued invoices list

Correct practice: catering services industry sellers can be issued invoices according to the commodity code 307040100000000000 (catering services), the list in the dishes do not need to be issued through the list of the tax-controlled system, the consumer can be used to pay for the clearing of the bills and invoices together as tax Voucher.

Misconception 3:

Value-added tax invoices obtained for travel expenses can be deducted

Correct practice: Meals in travel expenses are not allowed to be deducted from input tax regardless of whether or not they have obtained value-added tax invoices.

Related basis: Cai Shui (2016) No. 36: input tax arising from purchased passenger transportation services, loan services, catering services, residents' daily services and entertainment services shall not be deducted from output tax.

Special reminder: because meals can not be deducted from the input tax, so in addition to travel expenses, employee education expenses, conference fees, board of directors' dues and other related costs of meals, are required to be separately accounted for or separately listed Oh.

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