What is repræsentation (business entertainment)?

In short

Repræsentation is spending on nurturing business relationships — restaurant visits, gifts and receptions for customers and partners.

In practice

The deduction is limited: only 25% of the cost is tax deductible, and the VAT generally cannot be reclaimed — except 25% of the VAT on business-purpose restaurant bills. Note the occasion and participants on the receipt; it is a requirement.

Go deeper: Client entertainment or staff cost? Deductions for meals, gifts and parties

Related terms

• Fradrag (tax deduction)
• Personalegoder (employee benefits)
• Bilag (receipt/voucher)
• See every term in the dictionary

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