Deduction of Representation (food, drink, gifts)

This page gives examples of costs that count as representation. All these costs must directly relate to the business. There are 2 cases of direct relation:

  • Business negotiations (like meeting with a client)

  • Staff care (like coffee breaks for employees)


For lunch/dinner/non-alcoholic beverages

VAT deductions are allowed if the cost does not exceed 300 SEK excluding VAT. This means a VAT deduction of up to 36 SEK per person per occasion is allowed. The cost excluding the VAT is not deductible.


Alcohol (beer, wine, spirits)

VAT deduction is allowed at 75 SEK per person per occasion. The cost itself is not deductible.


Simple refreshments (coffee, sandwich)

For VAT, it's similar to meals where the deduction is allowed at 36 SEK per person per occasion. The expense is deductible if it's 60 SEK or less excluding VAT. Thus, the entire cost is deductible at this threshold. If the cost exceeds by even 1 SEK, then the entire expense becomes non-deductible.


Sports events, theater, green fees, expenses at staff parties

You can deduct VAT for expenses up to 180 SEK excluding VAT per person per occasion.


Representation gifts (chocolate, flowers)

The gift must be related to a business deal. It's deductible up to 300 SEK excluding VAT per person.


Advertising gifts (promotional items)

These must directly relate to the company's products or manufacturing. The gifts should not have a personal character. Deductions are allowed up to 300 SEK excluding VAT per person.