The expenses incurred to attend the Tour of Flanders with clients are treated for tax purposes as follows:
- The expenses for the access (i.e. VIP tickets) at the event are considered to be advertising costs insofar as it can be demonstrated that it is intended to provide the company with some form of advertising (e.g. company name clearly visible on flags, signs, banners, caps, etc.). These expenses are 100% deductible.
- The expenses related to the reception of clients, suppliers or business relations at the event are considered as reception costs. This includes the cost of meals, snacks, candies, drinks, flowers, etc. Only 50% of these expenses are deductible.
- The cost of meals which are consumed in a restaurant accessible to the public, whether or not on the occasion of the event, are considered as restaurant costs and are deductible at a rate of 69%.
- There is no taxable benefit in kind on the part of the beneficiaries.
If the company is sponsoring the Tour of Flanders the VIP tickets, received in return for this sponsoring, can be offered to its clients. The expenses linked to the sponsoring are fully tax deductible and there will be no benefit in kind on the part of the beneficiaries if the advertising character is demonstrated.
If the company merely offers VIP tickets without any form of advertising during the sporting event, the tickets will be considered as a business gift. The classic tax rules for business gifts will apply.
Do not hesitate to contact our Employment & Benefits team, we are happy to assist you.