Are Restaurant Expenses Tax Deductible?

The Beancounter •

Short answer: Yes, most of them. But you’re probably paying for business meals on your personal card and missing out. Let’s fix that.

What SARS Actually Says

SARS allows you to claim any expense that’s “in the production of income” – basically, anything you spent to make money or run your business.

For restaurant expenses, that means:

You can claim:

  • Meals with clients (whether you close the deal or not)
  • Team lunches and staff meals
  • Coffee meetings where you’re discussing business
  • Working lunches – even alone, if you’re genuinely working

You can’t claim:

  • Personal meals that have nothing to do with your business
  • Dinner with your spouse on a Saturday night (unless they work in the business and you’re discussing business)

That’s it. No complicated rules. No rand limits per person.

 

The Real Question

Here’s what we see with our clients all the time:

You grab coffee with a potential supplier. You pay with your personal card because it’s quick. You never claim it.

You take a client to lunch. Same thing.

You’re working late, so you order food to your desk. Personal card again.

By the end of the year, you’ve paid for thousands of rands in legitimate business expenses out of your own pocket.

That’s money you didn’t need to spend personally.

 

What To Do About It

Option 1: Use your business card

If you have one, use it for anything business-related. Then it’s automatically in your books.

Option 2: Claim it back

If you paid personally, keep the slip. Write on the back who you met and what it was about. Submit it as a reimbursement.

Option 3: Stop and think before you pay

Ask yourself: “Is this meal happening because of my business?” If yes, it’s claimable.

 

The Mindset Shift

Most business owners think they need to justify why a meal IS a business expense.

Flip it around.

If you’re a business owner and you’re having a meal with someone who isn’t family or close friends – it’s probably business. The meeting happened because of your business. The relationship exists because of your business.

You don’t need to be signing contracts at the table. A relationship-building lunch with a client you’ve worked with for years? That’s business.

 

Keep It Simple

  • Keep your receipts (photo on your phone is fine)
  • Note who you were with and why
  • Use your business card or claim it back

You’re running a business. Act like it – and stop subsidising SARS with your own money.

 General information only – chat to your accountant about your specific situation



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