Did you know that it is possible to fully deduct all hotel and restaurant expenses for VAT number holders? Let’s see the present regulation for those who can use it.
If you did not know, you will now be informed: the deduction of the cost of VAT for services of restaurants and hotels it is fully possible as regards professionals and companies that have a VAT number, obviously if duly declared and invoiced.
This regulation has also been confirmed in the current year with the need to specify some specific dynamics: the deductibility or deductibility of VAT it is in fact managed by the TUIR and is given as an option to companies, businesses and professionals with an ordinary VAT number, i.e. at a minimum and flat rate.
However, it must be specified that the deductible expenses of 2023 include: expenses for “pure” hotels and restaurants; expenses for hotels and restaurants attributable to entertainment expenses; expenses for hotels and restaurants for professional refresher courses.
Obviously these types of expenses have a deductibility and deductibility very different from each other.
Deductibility and deductibility on hotels and restaurants: legislative part
The regulatory reference regarding the deductibility of hotels and restaurants for VAT holders is paragraph 5, article 54 of the TUIR, which establishes that:
“Expenditure relating to hotel services and the administration of food and drink are deductible to the extent of 75 per cent and, in any case, for a total amount not exceeding 2 per cent of the amount of fees received in the tax period.”
As a result of the changes introduced by law no. 81/2017, also defined as the Jobs Act of self-employment, it was established that:
“The limits referred to in the previous period do not apply to expenses relating to hotel services and the administration of food and beverages incurred by the art or profession operator for the execution of an assignment and charged analytically to the client. All expenses relating to the execution of an assignment conferred and incurred directly by the client do not constitute compensation in kind for the professional.”
With regard to the deductibility of the cost, however, the regulatory reference to be considered is paragraph 5, article 109, of the TUIR, which in the last sentence establishes that: “expenses relating to hotel services and food and drink supplies, (…), are deductible to the extent of 75 per cent”