{"id":10887,"date":"2019-08-01T09:48:57","date_gmt":"2019-08-01T07:48:57","guid":{"rendered":"https:\/\/tunal-stb.de\/hospitality-expenses-catching-up-on-disclosures\/"},"modified":"2023-07-21T09:36:11","modified_gmt":"2023-07-21T07:36:11","slug":"hospitality-expenses-catching-up-on-disclosures","status":"publish","type":"post","link":"https:\/\/tunal-stb.de\/en\/hospitality-expenses-catching-up-on-disclosures\/","title":{"rendered":"Hospitality expenses, catching up on disclosures"},"content":{"rendered":"<section class=\"l-section wpb_row height_large\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><h2>Entertainment expenses &#8211; Subsequent disclosures<\/h2>\n<h3>Entertainment expenses not business expenses if&#8230;<\/h3>\n<p>Expenses for the entertainment of persons for business purposes are not permitted under Sec. 4 (4) of the German Income Tax Act. 5 No. 2 EStG may not be deducted as <strong>business expenses<\/strong> to the extent that they exceed 70% of the expenses to be regarded as reasonable; i.e., 30% of the reasonable expenses are not deductible.<\/p>\n<\/div><\/div><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><h2>Written proof requirement<\/h2>\n<p>The amount and the business reason for the entertainment expenses must be proven by recording in writing the place, day, names of the participants and reason for the entertainment as well as the amount of the expenses.<\/p>\n<\/div><\/div><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p>The records must be kept in a <strong>timely manner<\/strong>; it is not sufficient to make up the information, e.g. after two years on the occasion of a tax audit.<\/p>\n<\/div><\/div><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><h2>Input tax deduction allowed in full<\/h2>\n<p>In contrast, the <strong>full amount<\/strong> of <strong>input tax deduction<\/strong> in connection with entertainment costs is permitted (Section 15 (1a) sentence 2 UStG). The underlying expenses must be reasonable and the usual requirements for deducting input tax must be observed (in particular, there must be a proper invoice). In a recent ruling, a tax court recognized the input tax deduction for entertainment costs, although the required information was only provided approximately four years after the entertainment and thus not in a timely manner. By making up the information, it was not possible to &#8220;save&#8221; the business expense deduction, but at least the input tax deduction.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Entertainment expenses &#8211; Subsequent disclosures Entertainment expenses not business expenses if&#8230; Expenses for the entertainment of persons for business purposes are not permitted under Sec. 4 (4) of the German Income Tax Act. 5 No. 2 EStG may not be deducted as business expenses to the extent that they exceed 70% of the expenses to...","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[535,932,1013],"tags":[1270,1159],"class_list":["post-10887","post","type-post","status-publish","format-standard","hentry","category-information-letter","category-input-tax-deduction","category-operating-expenses-en","tag-audit","tag-hospitality"],"acf":[],"_links":{"self":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/comments?post=10887"}],"version-history":[{"count":11,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10887\/revisions"}],"predecessor-version":[{"id":11114,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10887\/revisions\/11114"}],"wp:attachment":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/media?parent=10887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/categories?post=10887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/tags?post=10887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}