Charges hotels restaurants deductibility

News regarding expenses for hotel and restaurant professionals and employees of companies: those with a high number of employees on business trips will tax benefits from full deduction of VAT for hotel expenses and food.

On the contrary, companies with few employees will spend more greedy for lunches and dinners.

The limitation to 75% of the deduction of the costs, in force since 1 January 2009, aims to avoid loss of revenue for the Treasury, but the trade-off between lower costs and higher VAT deducted deducted will not work for everyone the same way.

Who will benefit will certainly be the professionals, who continue to keep the deductible limit of 2% of compensation, and businesses that do not have any reduction for the costs of meals and accommodation for employees on business trips.

Disadvantaged minimum taxpayers and, in general, who has limits to deduct VAT due to the pro-rata basis.

From today, Monday, Sept. 1, after the suppression of the first part of the letter e) of Article 19 bis 1 of the Decree VAT, the tax charged on hotel and restaurant services will be fully deductible if obviously related to the activity of enterprise or self-employment exercised.

 

01/09/2008

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Translated via software

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Source:

Italian version of CercaGeometra.it