Business entertainment expenses are essentially personal consumption, so the VAT input tax of these expenses cannot be deducted from the VAT output tax of enterprises. Of course, although the input tax of business entertainment expenses cannot be deducted, business entertainment expenses, as normal business expenses of enterprises, can be deducted as expenses before tax.

The scope of business hospitality, whether it is financial accounting system or tax system, has not been accurately defined. However, in the practice of tax enforcement, it is usually defined as expenses such as catering, cigarettes, water, vegetables, tea, gifts, normal entertainment activities, and expenses incurred in arranging customers to travel.

Business entertainment expenses specifically include the following contents:

1, meals

In the business entertainment expenses, although meals are not the only expenses, they also account for a relatively large sum of expenses. After all, if you don't understand the dining table culture in China, it is impossible to carry out business cooperation in China!

Step 2 give souvenirs

Apart from meals, the most important item in business entertainment expenses is the cost of giving away souvenirs. Especially for some enterprises that rely on "conference sales", the cost of giving souvenirs is still very high.

3. Travel related expenses

For enterprises, because of business needs, they will also spend some travel expenses. Of course, travel expenses include scenic spot entrance fees, transportation fees and other expenses.

For example, some winery agents will regularly hold some activities to buy wine to increase tourism. In fact, the expenses of these activities are not borne by agents, but by wineries. For wineries, these expenses are the business entertainment expenses of wineries.

4. Travel expenses

What we should pay attention to here is the travel expenses, not the travel expenses of our own business personnel, but the travel expenses of our customers.

For example, the accommodation fee for entertaining external customers needs to be accounted by the subject of "business hospitality" instead of "travel expenses", although a formal invoice has been obtained.

Legal basis:

Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Article 10 The input tax of the following items shall not be deducted from the output tax:

(1) Goods, services, intangible assets and real estate purchased for simple taxation, exemption from value-added tax, collective welfare or personal consumption;

(two) abnormal losses of purchased goods and related labor and transportation services;

(3) Goods purchased (excluding fixed assets), services and transportation services consumed by products in process and finished products with abnormal losses;

(four) other projects stipulated by the State Council.

Article 15 The following items shall be exempted from value-added tax:

(1) Self-produced agricultural products sold by agricultural producers;

(2) Contraceptive drugs and devices;

(3) old books;

(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

(5) Imported materials and equipment provided free of charge by foreign governments and international organizations;

(six) articles for the disabled directly imported by organizations for the disabled;

(7) selling articles for personal use.

In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.