What expense category do meals come under?
There is no definitive answer to this question, as it depends on the specifics of the business and the country in which it is based. However, there are a few general categories that meals could come under, which are outlined below.
Travel Expenses
If the meals are being incurred while traveling for business purposes, then they would usually come under the travel expenses category. This would include any meals taken while away from the office on business trips, conferences, or meetings. Travel expenses can be claimed as a tax deduction in many countries, so this is a popular option for businesses.
Entertainment Expenses
Another common category for business meals is entertainment expenses. This includes any meals taken with clients or potential clients, in order to entertain them and build relationships. Entertainment expenses can be claimed as a tax deduction in many countries, but there are usually stricter rules around what can be classed as entertainment (e.g. it must be considered 'reasonable and necessary').
Training Expenses
If the meals are being incurred while attending training courses or events, then they would usually come under the training expenses category. This would include any meals taken while away from the office attending training courses, conferences, or seminars. Training expenses can be claimed as a tax deduction in many countries, so this is a popular option for businesses.
Other Expenses
There are other less common categories that meals could come under, depending on the specifics of the business. For example, if the meals are being provided for employees as a benefit, then they could come under the 'employee benefits' category. If the meals are being provided for customers or clients as part of a promotional event, then they could come under the 'marketing expenses' category. It's important to speak to an accountant or tax advisor to find out which category is most appropriate for your business.
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