In this article, we dive deeper into exactly what entertainment expenses entail. We give examples, explain how they work and tell you everything you need to know about their deductibility!
What are representation expenses 🔎
Representation expenses are a kind of umbrella term for all kinds of expenses you do as a business owner to represent your business. Think of business gifts, memberships of associations, etc. In other words, these are costs you incur to catch the eye of (potential) customers, maintain relations and expand your network.
Although these costs are not 100% business in nature, they do contribute to generating income for your business. Consequently, the government says there is still some limitation to the tax deductibility of such expenses, more on that later!
Examples of representation expenses
To make things clearer, here is a list of common representation expenses:
- Business gifts to customers or business associates 🎁
- Expenses for events, meetings or conferences 🎫
- Memberships from associations or business clubs 🧑🤝🧑
- Costs for professional clothing 👷
Note that some of these costs are (sometimes) fully deductible, while others are only partially eligible. Click here for more info!
Tip:
Be sure to view our list of deductible professional expenses for your accounting too!
What is the difference between entertainment expenses and other expenses?
It is important not to confuse representation expenses with other types of expenses you have as an entrepreneur, such as professional expenses you incur for purchases of trade goods, business software, a laptop, office equipment….
Representation expenses differ from the above in that they are not directly linked to your core business, but do contribute to generating income. They are therefore ‘mixed expenses’ with both a business and private nature. For more info, best view our article on the importance of professional use of an expense.
Dexxter to the rescue! 💪
We hope you now have a better idea of what representation expenses are and how they work. It’s a complex subject with a lot of pitfalls. But don’t worry, with the right tools you can easily keep everything under control!
Managing representation expenses has never been easier than with Dexxter, the user-friendly accounting software for sole proprietors! Manage all your income and expenses in a snap. This way, you accurately keep track of what entertainment expenses you incur and how much you can deduct.
Optimise your bookkeeping and do not forget any expenses. Put your receipts in Dexxter however you want (mail, app, PC). 🤝
Dexxter was created especially for Belgian sole proprietors, because we believe that bookkeeping doesn’t have to be difficult.
Tip
Try Dexxter free via our 30-day trial!
In this article, we dive deeper into exactly what representation fees entail. We give examples, explain how they work and tell you everything you need to know about their deductibility!
What are representation expenses 🔎
Representation expenses are a kind of umbrella term for all kinds of expenses you do as a business owner to represent your business. Think of business gifts, memberships of associations, etc. In other words, these are costs you incur to catch the eye of (potential) customers, maintain relations and expand your network.
Although these costs are not 100% business in nature, they do contribute to generating income for your business. Consequently, the government says there is still some limitation to the tax deductibility of such expenses, more on that later!
Examples of representation expenses
To make things clearer, here is a list of common representation expenses:
- Business gifts to customers or business associates 🎁
- Expenses for events, meetings or conferences 🎫
- Memberships from associations or business clubs 🧑🤝🧑
- Costs for professional clothing 👷
Note that some of these costs are (sometimes) fully deductible, while others are only partially eligible. Click here for more info!
Tip:
Be sure to view our list of deductible professional expenses for your accounting too!
What is the difference between entertainment expenses and other expenses?
It is important not to confuse representation expenses with other types of expenses you have as an entrepreneur, such as professional expenses you incur for purchases of trade goods, business software, a laptop, office equipment….
Representation expenses differ from the above in that they are not directly linked to your core business, but do contribute to generating income. They are therefore ‘mixed expenses’ with both a business and private nature. For more info, best view our article on the importance of professional use of an expense.
Dexxter to the rescue! 💪
We hope you now have a better idea of what representation expenses are and how they work. It’s a complex subject with a lot of pitfalls. But don’t worry, with the right tools you can easily keep everything under control!
Managing representation expenses has never been easier than with Dexxter, the user-friendly accounting software for sole proprietors! Manage all your income and expenses in a snap. This way, you accurately keep track of what entertainment expenses you incur and how much you can deduct.
Optimise your bookkeeping and do not forget any expenses. Put your receipts in Dexxter however you want (mail, app, PC). 🤝
Dexxter was created especially for Belgian sole proprietors, because we believe that bookkeeping doesn’t have to be difficult.
