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These trade fair costs are deductible as operating expenses

Tuesday, 22. August 2017 | by: Katja Brößling | Exhibition Planning

Fairs offer excellent opportunities for presenting yourself as an exhibitor or as a trade visitor to gather new information and establish contacts. However, if you want to pay the fair costs as operating expenses, you have to pay attention. For the tax office there are a total of three events, why you visit a trade fair: for professional, mixed or private reasons. If you wish to discontinue the trade fair costs as operating expenses, you are always in charge of the tax and must be able to prove the professional reasons.

Purely professional visit

If the trade fair visit is purely professional, all related costs can be claimed as operating expenses. In order to prove the purely professional motivation of the trade fair visit, for example, a trade fair diary can be conducted, business cards collected and call logs created. These visiting costs are tax deductible:

  • Entrance ticket
  • travel expenses; By car to the fair 30 cent/kilometer + parking fees
  • Accommodation costs
  • Catering Package (12 Euro/8 hours, for more than 24 hours it is 24 euros)
  • Taxi costs and public transport tickets
  • Accident costs and travel baggage
  • Cost of professional phone calls and faxes

Mixed Trade Fair Visit

If you travel to a trade fair for partly professional, partly private reasons, only the purely professional expenses can be claimed by the tax office. Expenses such as the arrival and departure or accommodation costs have to be divided according to time shares.

Costs as Exhibitors

If you are an exhibitor at a trade fair, you can also specify typical costs as operating expenses. But the more expensive the exhibition is, the more the tax Office will deal with the records. A particularly detailed proof, for example by collecting documents, is a prerequisite for any entrepreneur. Typical fair costs as exhibitors are:

  • Stand costs
  • Cost of building the stand
  • Personnel costs
  • Free admission tickets for employees, customers and business partners
  • Giveaways worth up to 10 euro
  • Catering costs during working hours at the stand

In the case of the stand costs a special note is to be observed: the tax Office can see the payments to the trade fair organizers as rental expenses. In accordance with § 8 No. 1 D and E GewStG, the commercial income for the determination of the trade tax is to be calculated proportionately. However, this regulation is controversial. If the tax Office makes this calculation and if it results in a higher commercial taxes, it is worthwhile to contradict. Costs for advertising technology such as banners, roll-ups or displays that you can make for your company at trade fair farmers or online providers such as Print24 are recognized as operating expenditure. These are finally used several times.

Some costs are specific

For some trade fair issues, it is important to note special features so that they can be claimed as operating expenses.

  • If a business partner is not served at the booth but in a restaurant, there is a business-induced entertainment. However, the operating expense deduction can only be deducted to 70 percent as an operating issue.
  • Those distributing gifts worth up to 10 euros can easily be claimed as operating expenses. For more expensive gifts, a list of who has received them must be kept. Without these records, it could not allow the tax office to operate as operating expenses. If long-term business partners or customers receive gifts worth more than 35 euros, they are also not retractable as operating expense. Exceptions are gifts that can only be used purely professionally.
  • If prizes are raffled in a raffle, the cost of the purchase can be calculated as the operating expense. However, if only selected persons, such as customers and business partners, and not all trade fair visitors are allowed to participate in the raffle, the Tax Office may refuse to credit the prices as operating expenses.

    provided by SHEworks!

Budget planning Calculations Costs Finances Financial planning Taxes
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About Katja Brößling

Katja Brößling is a specialist in business administration with a focus on operating expenses, human resources management and marketing. After many years of experience in online marketing, she has been a co-founder and managing director of SHEworks since 2014. A news portal that deals with content on business, career and self-employment for women. As an editor, she writes and informs about the topics of entrepreneurial knowledge, reconciliation, gender and family policy. Since 2015, she has also been a managing director of the # 140 agency, a consulting firm specializing in online marketing and social media.

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