This is how you book food costs & alcohol on a business trip!
When you are away on a business trip, you often incur meal expenses. These expenses should be recorded correctly depending on which accounting method you use and whether the meal is deductible. Here we will go over how to record meal expenses using both the cash method and the invoice method.
Cash method (record upon payment)
The cash method means that you only record business transactions when payment is made.
Example: You pay for a business meal with a corporate card for 500 SEK including 12% VAT.
| Account | Name | Debit | Credit |
|---|---|---|---|
| 1930 | Business account | 500 SEK | |
| 6071 | Entertainment, deductible | 446 kr | |
| 2641 | Input VAT | 54 kr |
(If the meal is not deductible, account 6072 – Entertainment, non-deductible is used instead.)
Invoicing method (post at invoicing and payment)
The invoicing method means that you post both the invoice date and the payment separately.
Example: You receive an invoice for a business meal for SEK 500 including 12% VAT.
Upon receipt of invoice:
| Account | Name | Debit | Credit |
| 2440 | Accounts payable | 500 SEK | |
| 6071 | Entertainment, deductible | 446 kr | |
| 2641 | Input VAT | 54 kr |
When paying the invoice:
| Account | Name | Debit | Credit |
| 2440 | Accounts payable | 500 SEK | |
| 1930 | Business account | 500 SEK |
Rules for alcohol at entertainment
Alcohol has special rules for entertainment and business trips:
- Costs for alcohol are not deductible , but VAT may be deductible up to certain amounts.
- If the meal includes alcohol, this portion is recorded separately as non-deductible entertainment .
- Example of accounting for a business meal where SEK 200 of the amount refers to alcohol:
| Account | Name | Debit | Credit |
| 1930 | Business account | 500 SEK | |
| 6071 | Entertainment, deductible | 312 kr | |
| 6072 | Entertainment, non-deductible | 178 kr | |
| 2641 | Input VAT | 10 kr |
- The Swedish Tax Agency has set standard amounts for how much VAT can be deducted. Always check the current rules.
Tips for correct meal accounting
- Business meals have 12% VAT in Sweden.
- Entertainment may be fully or partially deductible – check current rules from the Swedish Tax Agency.
- Alcohol is not deductible, but the VAT can be partially lifted depending on the amount.
- If you pay privately and want reimbursement, record the expense against 2893 – Debts to related parties until the company repays.
- Always save receipts and invoices for correct accounting and documentation in case of a possible audit.
By following these principles, you can ensure that your food expenses during business trips are recorded correctly, regardless of which method you use!