Business entertainment of clients, or entertainment of staff?
| Type | Participants | Deduction |
|---|---|---|
| Business entertainment of clients (geschäftliche Bewirtung) | Business partners, customers, prospects | 70% of costs, input tax 100% deductible |
| Entertainment of staff (betriebliche Bewirtung) | own employees only | 100% of costs |
If a company's own employees also take part in business entertainment of clients, the 70-percent rule applies to the entire invoice.
The mandatory details on the entertainment receipt
- Place of the entertainment — name and address of the restaurant, generally satisfied by the invoice itself.
- Date of the entertainment.
- Participants — all persons named individually, including the host.
- Occasion — specific, for example "Project coordination for quote no. 2026-114." Wording such as "business dinner" or "client relations" is not sufficient.
- Amount of the expense and the host's signature.
For entertainment at a restaurant, details of the occasion and participants are sufficient in addition to the machine-generated invoice; a separate form is possible but not mandatory, as long as the details are recorded promptly and in writing.
Requirements for the invoice
- Machine-generated and electronically recorded, with till details (cash register serial number, TSE data — the technical security device required for German electronic cash registers).
- Food and drink listed individually — a collective item such as "food and drink" is not sufficient.
- Above €250 gross: the host's name and address must appear on the invoice.
- The restaurant's tax number or VAT ID and the VAT amount shown separately.
Tips
A tip is also deductible if it is noted on the invoice and acknowledged by the recipient. Alternatively, a self-generated receipt with date, amount and a reference to the entertainment invoice is sufficient — for smaller amounts, this is accepted in practice.
Common reasons for rejection
- A handwritten invoice instead of a machine-generated till receipt.
- The occasion worded too generally.
- An incomplete list of participants, or the host's own name missing.
- The host's signature missing.
- The receipt has faded and is no longer legible.
Fill it in immediately, secure it immediately
Fill in the details right at the table, photograph the receipt and file it digitally. Anyone who leaves this until the end of the quarter will remember neither all the participants nor the specific occasion — and that is exactly what will be asked about.