Are all meal expenses considered business entertainment expenses? The answer is not necessarily. What kind of accounting items should the company's reception expenses, business trip meals, conference meals, etc. be included in the accounting accounts? Mande Enterprise Service has prepared a detailed explanation for you today.

Myth 1:

All meal expenses are business entertainment expenses

Correct approach: In the normal operation of a company, the reasons for meal expenses vary. , many companies equate meal expenses with business entertainment expenses. In fact, business entertainment expenses include meal expenses, but meal expenses are not necessarily business entertainment expenses.

For example:

◎Due to the needs of business development, entertaining customers for meals is listed as "entertainment expenses" in accounting; Meal expenses within the company are listed as "travel expenses" in accounting;

◎ Dining in employee canteens and overtime dinners are listed as "employee welfare expenses" in accounting;

◎Enterprises organize employee occupations For technical training and meals during the training, the accounting is listed as "employee education funds";

◎The company holds a meeting in the hotel, and for meals during the meeting, the accounting is listed as "conference fees";

◎Meal expenses incurred during the establishment of the enterprise are listed as "start-up expenses" in the accounting;

◎Meal subsidies for employees distributed in cash are listed as "wages and salaries" in the accounting;

◎The trade union organizes employee activities, and the meal expenses incurred during the activities are listed as "union funds" in the accounting;

◎The company holds a board of directors, and the meal expenses incurred during the board meeting are listed as "Board of Directors" in the accounting

◎ During the filming process of film and television enterprises, the "meal expenses in film and television dramas" are included in the accounting costs of film and television.

Myth 2:

To issue a catering invoice after a meal, an invoice list must be issued

Correct approach: Sellers in the catering service industry can use product code 307040100000000000 ( Catering services) issue invoices. The list of dishes does not need to be issued through the tax control system list. Consumers can present the clearance receipt and invoice together as a tax voucher.

Myth 3:

Special VAT invoices obtained for travel expenses can be deducted

Correct approach: Meal expenses included in travel expenses can be deducted regardless of whether they have been deducted for VAT. Input tax cannot be deducted from invoices.

Relevant basis: Finance and Taxation (2016) No. 36: The input tax generated from purchased passenger transportation services, loan services, catering services, residents' daily services and entertainment services shall not be deducted from the output tax.

Special reminder: Since meal expenses cannot be deducted from input tax, meal expenses in staff education funds, conference fees, board of directors fees and other related costs other than travel expenses need to be separately accounted for or listed separately. oh.

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