Practical guide
Cash, restaurants and tips: how to put them on an expense report
A client meal, a coffee paid in cash and the five euros left for the waiter all raise the same question: is it deductible, and with what receipt? Here are the tax rules that apply and how to correctly extract VAT from a restaurant or bar receipt.
Business meals and solo meals: two different regimes
A meal shared with a client, prospect, partner or supplier is an entertainment expense: it is deductible as long as it is incurred in the interest of the business, is a reasonable amount, and is documented. The receipt alone doesn't prove that: note the guest's name and the reason, as that's the first thing checked in a tax audit.
A meal eaten alone while travelling falls under a different logic: only the portion above the cost of a meal eaten at home is deductible, and only when distance makes going home impossible. A daily lunch near your usual office fits into neither category.
The question isn't "do I have a receipt?" but "can I explain in one sentence why the business paid for this meal?". Write that sentence on the expense as you scan it.
Reclaiming VAT on a restaurant or bar receipt
Unlike a private individual's entertainment costs, VAT on business dining can be reclaimed. But you need a document that states it: above a certain amount, ask for a receipt made out to the business, with its details.
A bar or restaurant receipt almost always mixes two rates. Coffees, dishes and non-alcoholic drinks fall under 10%, alcohol under 20%. An extraction that only picks up one rate distorts the return: ScanCompta reads the breakdown printed at the bottom of the receipt and keeps each base with its own rate, so you never have to rebuild the figures by hand.
- Food and non-alcoholic drinks: 10% VAT.
- Alcoholic drinks: 20% VAT.
- Tip: out of scope, no VAT to reclaim.
- No VAT shown on the receipt: no deduction possible.
Tips, case by case
A tip is accepted when it is customary and proportionate. The difficulty is purely practical: it's often paid in cash, so it's invisible.
Tip added on the card terminal
The simplest case: the amount charged exceeds the bill total, the difference is the tip, and the bank statement proves it. Scan the receipt and the card slip, and note the difference in a comment.
Tip left in cash
No trace at all, unless the server writes it on the bill. Failing that, note it on the expense as you scan it, with the amount. A significant, undocumented tip will be rejected.
Service included
When the service charge is shown on the bill, it's part of the price and follows the treatment of the main expense, VAT included. Nothing extra to do.
Paying in cash without losing the deduction
Cash isn't forbidden, it's just fragile: it leaves no bank trace, so the receipt is the only record that exists. If it's lost, the expense is lost with it, unlike a card payment which at least leaves a line on a statement.
Two precautions are enough. First, photograph the receipt immediately, at the counter, before even putting the change away. Second, keep a running cash log if cash payments are frequent, so the theoretical balance matches what's actually left in the wallet.
What it looks like in the export
Every scanned meal lands in the monthly export with its date, supplier, VAT bases split by rate, category and your comment. The accountant then has the reason for the expense without having to call you, which is exactly what saves time on both sides.
Cash expenses are identified by the payment method noted on the record, and tips appear in the comment of the relevant line rather than as an extra line with no receipt.
In summary
A meal is deductible when you can say why the business paid for it, VAT is reclaimable when the receipt states it and breaks down both rates, a tip passes if it's reasonable and documented, and cash remains fine as long as you have the receipt. It all happens in the ten seconds after paying: photograph the bill and write the reason while it's still fresh in your mind.
Questions & comments
A question about this guide? Ask below — I answer personally within one business day.
- J
Julien
August 12, 2026
If I lose a €9 toll receipt, can I still claim it with just a bank statement?
ScanComptaAuthorYes — for a small amount, a bank statement plus a signed statement is usually accepted. You cannot reclaim VAT without the original receipt though.
- S
Sonia
August 3, 2026
Do I need to keep the paper receipts after scanning them with your app?
ScanComptaAuthorNo. If the scan is a faithful and durable copy, the digital version is enough. We store everything for 10 years for you.
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Frequently asked questions
Is a meal eaten alone while travelling deductible?
Yes, the portion above the cost of a meal eaten at home is deductible when the distance from the usual workplace makes it impossible to go home. The receipt must show the date, place and amount, and the expense must remain reasonable.
Can VAT on meals be reclaimed?
Yes, for restaurant costs incurred in the interest of the business, provided you hold a receipt that shows the VAT. The rate is generally 10% on food and non-alcoholic drinks and 20% on alcohol: the receipt breaks the two down.
Is a tip deductible?
A customary tip of a reasonable amount follows the treatment of the main expense, provided it is documented: the simplest way is for it to appear on the bill or the card receipt. VAT cannot be reclaimed on a tip.
Can a business expense be paid in cash?
Yes, within the legal limit on cash payments between a business and a merchant, and provided the receipt is kept. The problem is traceability, not cash itself: without a receipt there is no bank trace to reconstruct the expense.
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