Sometimes you will deduct VAT from your hotel and restaurant invoices


Invoices for the hotel and restaurant do not give the entrepreneur the right to deduct the input tax on goods and services. However, there are some exceptions that will allow the business owner to include the entire tax amount in the VAT Purchase Register. How is this possible?

Hotel and restaurant invoices without VAT deduction

The lack of the right to deduct tax on goods and services from invoices for a hotel and restaurant results from the regulations contained in the VAT Act, and more specifically from Art. 88 sec. 1 point 4.

Art. 88 sec. 1 of the VAT Act:

"The reduction in the amount or the refund of the difference in output tax shall not apply to the purchases by the taxpayer: (...)

4) accommodation and catering services, except for:

a) (deleted)

(b) the purchase of ready meals intended for passengers by taxable persons providing passenger transport services. "

What does this mean for the entrepreneur? Well, in a situation where he receives an invoice for this type of services, which will show the net amount, VAT and gross amount, he has the right to include the purchase of these services in the gross amount (without VAT deduction) as tax deductible costs. Importantly, for the classification of accommodation (hotel) and catering services, the PKWiU should be used.

When is it possible to deduct VAT on hotel and restaurant invoices?

However, there are situations when entrepreneurs use a package of services that are inextricably linked with each other. In this case, it is possible to deduct VAT from the total value indicated on the invoice, including hotel and catering services. An example would be a two-day training course that also includes accommodation and meals for participants.The whole thing is a comprehensive service, so the business owner will be able to deduct VAT from such an invoice.

VAT on an invoice for a hotel and restaurant can also be deducted when the entrepreneur employs an employee who - as a subcontractor - organizes accommodation and catering services. This happens when, for example, a training company employs an employee-trainer who is to organize and conduct training, arranging accommodation and food on its own.

It is also worth bearing in mind that the lack of the right to deduct VAT applies to catering services, but not catering services. Following the way of interpreting the above-mentioned the provision resulting from the interpretations issued, catering services are not considered catering services within the meaning of Art. 88 sec. 1 point 4, therefore, it is allowed to deduct input tax on their acquisition. This means that such expenses should be included in the net amount as tax deductible costs.

This position has been confirmed in many interpretations of the tax authorities. In one of them, the Director of the Tax Chamber in Warsaw (reference number IPPP1 / 443-1110 / 12-2 / EK) indicated that:

"In this classification, the legislator classified in section 56 (" Food-related services ") under the symbol:

  • PKWiU 56.1 "Restaurant and other catering services",
  • PKWiU 56.2 "Food preparation services for external recipients (catering) and other gastronomic services", where the symbol PKWiU 56.21 includes "Food preparation and delivery services for external recipients (catering), and the symbol PKWiU 56.29" Other catering services ".

The above classification shows that catering services are separate services from catering services. In the provision of art. 88 sec. 1 point 4 of the Act, excluding the right to deduct input tax, only catering services were mentioned. Thus, due to the different nature of these services, it cannot be concluded that the limitation in deducting input tax resulting from Art. 88 of the Act. However, the condition for the exercise of this right is that the purchased services are used to perform taxable activities. "

The distinction between accommodation services and real estate rental (leasing) also requires attention. In the case of expenses related to the second type of services, the entrepreneur is entitled to a full VAT deduction. Therefore, if the company often sends its employees to another city, it is worth considering the possibility of renting / leasing a suitable premises - it can be very tax-beneficial.


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