(2023) What applies when meals are provided by the employer?

During off-site activities, such as training events, seminars, conferences, sales events, etc., participants are often provided with meals at the employer's expense, either directly by the employer or at their instigation by a third party, e.g. the conference hotel or a catering company.

The beneficiary is taxed on this benefit.

The relevant meal allowance is reduced. The reduction is 20% for breakfast and 40% for lunch or dinner of the full meal allowance. Taxation at the official rate for benefits in kind only occurs if the employee cannot claim meal allowances as business expenses, e.g. for an absence of less than 8 hours or for long-term off-site work after the three-month period. The limit for "standard meals" is 60 Euro.

 

Current Federal Fiscal Court has ruled that meal allowances must also be reduced for employees without a "primary place of work" if the employer provides them with free meals (BFH ruling of 12.7.2021, VI R 27/19).

The case: A ship's officer receives free meals on board from the employer. In the wage statements, the employer showed these meals as tax-free benefits in kind. On "port days", the officer did not always take advantage of the on-board meals provided. On some days, the crew had to cater for themselves in ports. The officer claimed meal allowances for 206 days as business expenses.

According to the BFH, the officer is only entitled to meal allowances for the days on which the employer did not provide him with meals on port days. For all other days, the deduction is excluded, as breakfast, lunch, and dinner were provided free of charge on those days.