Can a company lunch plan be deducted from taxes?

Read on and learn more about the tax rules for company lunch plans for your business

"Can a lunch plan be deducted from taxes?" You've probably thought about that question, or your boss has asked you when considering signing up for your company lunch plan.

In Denmark, lunch plans are a popular way for employers to provide their employees with daily sustenance at the workplace. But how are the tax rules for a company lunch handled for a business?

First of all, it should be noted that lunch plans in Denmark are tax-free as long as they meet certain conditions. Secondly, the lunch must be accessible to all company employees and there must not be an arbitrary selection of employees who have access to the lunch plan. In other words: A lunch plan that can be deducted from taxes must not be reserved for a small group of employees.

So the short answer is: Yes, there is a full deduction on the entire VAT amount when the lunch plan is delivered from an external supplier, such as Madklubben's lunch, .506, or Shark House. It only requires that you adhere to the following rules:

• Employees must pay a minimum of 15 DKK per meal (excluding drinks) or 20 DKK per meal (including drinks).
• The lunch must be purchased collectively for the company and not for the individual employee. Individual orders from each employee must not be made.
• If individual employees make personal pre-orders of lunch, the rules for taxing the market value minus personal payment should be applied instead.

You should also be aware of these tax rules for lunch plans

The tax rules apply when you get your lunch plan delivered or if you have a canteen plan in your business.

You should also be aware that the tax deduction does not apply if the lunch you receive can be categorized as a luxury food. Here, you can read much more about whether a lunch plan can be deducted from taxes on the SKAT's website.