Business Meals with a Client in a Sole Proprietorship in Poland — Deductible Expense or Representation (2026)

A business meeting in a restaurant, coffee with a client, or refreshments during negotiations are expenses that entrepreneurs readily put in company costs. Unfortunately, the tax authority has its own opinion here — and it does not always agree.

The key rule: not every meal with a client is representation. Whether an expense is a deductible expense (KUP) depends on the purpose for which it was incurred.

Representation — what the PIT Act says

Art. 23 sec. 1 item 23 of the income tax (PIT) Act (Dz.U. 2026 poz. 592) excludes from deductible expenses the costs of representation, in particular those incurred for:

• catering services,
• the purchase of food and beverages, including alcoholic beverages.

But note — the exclusion concerns representation, not every catering service. The Act does not define "representation," so interpretations and case law decide whether a given expense qualifies.

A meal can be a deductible expense — the MF general interpretation

The general interpretation of the Minister of Finance No. DD6/033/127/SOH/2013/RD-120521 of 25 November 2013 (citing the judgment of the Supreme Administrative Court II FSK 702/11) clearly states: expenditure on catering services, food, and beverages — for example refreshments at a meeting with a client — can be a deductible expense.

They are excluded from deductible expenses (as representation) only when their main or sole purpose is to create or improve the company's external image.

This interpretation is general and has a protective character (Art. 14k § 2 of the Tax Ordinance) — which means that following it protects the taxpayer from negative consequences.

The purpose test: how to decide

The actual purpose of the expenditure is decisive:

Likely a deductible expense:

• a meal during contract negotiations with a client,
• coffee and cake while discussing a project,
• refreshments during a training session for clients,
• a working lunch devoted to business matters.

Likely representation (non-deductible):

• a luxury dinner intended to create an impression of the company's wealth,
• a banquet with alcohol without a specific business context,
• regular, recurring meetings at expensive restaurants without a documented purpose.

The key question is: was the expense incurred in order to earn revenue (Art. 22 sec. 1 PIT), or rather in order to build image?

VAT on catering and accommodation

Even when a meal is a deductible expense, VAT deduction is not straightforward. Art. 88 sec. 1 item 4 of the VAT Act (Dz.U. 2025 poz. 775) excludes the right to deduct VAT on:

• accommodation services,
• catering services.

This means that even if you document a lunch with a client with a VAT invoice in the company's name, you cannot deduct VAT from it. The VAT is then a cost (it increases the deductible-expense basis), but it is not deductible.

The standard VAT rate for catering services is 23%, although some products may have a reduced rate — but the restriction under Art. 88 sec. 1 item 4 applies regardless of the rate.

Settlement example

An entrepreneur invites a client to a business lunch. Bill: PLN 300 gross (PLN 243.90 net + PLN 56.10 VAT).

• Purpose: discussing contract terms — deductible expense: yes (business purpose).
• VAT: PLN 56.10 — no deduction (Art. 88 sec. 1 item 4 VAT). Non-deducted VAT increases the cost.
• PIT cost: PLN 300 (the entire gross amount as a cost, because VAT is not deducted).
• Alternative: if the purpose were solely to improve image — non-deductible, PLN 0 in costs.

Most common mistakes

1. Automatically treating every restaurant invoice as non-deductible

This is a mistake. The MF general interpretation confirms that a meal with a client can be a deductible expense. The purpose test is decisive.

2. Deducting VAT on catering

Art. 88 sec. 1 item 4 VAT blocks the VAT deduction on catering services regardless of purpose.

3. No documentation of purpose

A restaurant invoice alone will not prove business purposes. It is worth keeping a note, correspondence, or meeting confirmation.

4. Treating alcohol like an ordinary meal

Alcohol is mentioned expressly in Art. 23 sec. 1 item 23 PIT and is treated more strictly. The cost of alcohol is generally non-deductible.

FAQ

Is coffee with a client a deductible expense?

If the meeting has a specific business purpose (negotiations, discussing a project) — yes, it can be a deductible expense. Coffee in the office for employees is also a deductible expense.

Is lunch during a training session a deductible expense?

Yes, training catering is usually a deductible expense — it serves to earn revenue, not to build image.

Can VAT be deducted from a lunch invoice?

No. Art. 88 sec. 1 item 4 VAT excludes the VAT deduction on catering services.

Is alcohol non-deductible?

As a rule, yes. Art. 23 sec. 1 item 23 PIT lists alcohol among representation costs.

Sources

• PIT Act — Art. 22 sec. 1, Art. 23 sec. 1 item 23 (Dz.U. 2026 poz. 592)
• VAT Act — Art. 88 sec. 1 item 4 (Dz.U. 2025 poz. 775)
• MF general interpretation No. DD6/033/127/SOH/2013/RD-120521 of 25.11.2013
• More on costs in a sole proprietorship: Deductible expenses — a complete guide

Need help with costs?

Oxyok accounts for sole proprietorships with AI and human review — from PLN 49 + VAT per month. We help classify expenses and avoid representation mistakes.

Write to Paweł or see Oxyok accounting.

Note: Every expense for meals and catering requires a purpose analysis. This is neither an automatic deductible expense nor an automatic non-deductible expense — the business-purpose test is decisive.