A cup of coffee with a biscuit now and then, a piece of fruit with lunch and a cup of soup at four o’clock. Are you allowed to provide these refreshments to your employees at the workplace tax-free? The answer is yes. This is because such refreshments are valued at zero. This applies only if you provide the refreshments yourself. A coffee allowance is valued at the amount of the allowance (and may, of course, be included in the discretionary allowance if desired).
But please note! If these refreshments form part of a meal at the workplace, the zero-valuation rule does not apply. In that case, you must apply the meal rules. For a meal consumed at the workplace, a standard amount of €3.20 applies per meal. This standard amount, minus any contribution made by the employee, constitutes pay. You can also include the value of the meal as final levy pay within the discretionary allowance.
Tax-free meals
If the meal is more than just incidentally business-related – such as when working on late-night shopping evenings or during a genuine business lunch – it may be provided tax-free. The same applies to meals that form part of temporary accommodation expenses. For example, you may reimburse your sales representative’s meal expenses tax-free during a business trip, and the meal is also tax-free if consumed during a business meeting with a client outside the usual place of work.