Why coffee should be a recognized expense

Every self-employed person has to pay income tax on his earnings. It is important to emphasize that the tax is only on profits, not on all income. In other words, if the independent's business had expenses, he should not pay tax on them, and these are 'recognized expenses'.

What are recognized expenses?

The state wants the self-employed to work and earn money (because then they pay more taxes), so there is an effort to plan the tax in a way that causes as little damage as possible. And recognized expenses are a way to encourage the self-employed to invest in their business and increase activity.

On the other hand, not every expense can be recognized, because then the self-employed will request tax refunds on every expense, and in fact will pay no tax at all. Therefore, the state only recognizes business expenses, that is, expenses necessary to bring in money. This distinction is very complex and there is a lot of literature that deals with which expenses are recognized and which are not.

Why did the state refuse to recognize coffee as a recognized expense?

In the past, the state recognized meal and drink expenses for the self-employed. Although in low amounts, at least symbolically there was recognition that these were expenses 'on duty'. Since the 1970s, recognition has more or less disappeared based on the assumption that the self-employed would eat and drink even if he did not work, therefore eating and drinking are not part of the business expenses.

Why is the state wrong and cafes are necessary for some independents?

Anyone who goes to a coffee shop must have noticed that a lot of people come to them for work needs. When 'Aroma' or 'Arcafe' are full of freelancers with laptops or startups meeting with an investor, it is clear that they are there for work needs. It is clear that the coffee is actually an excuse to get the right to have a desk, internet, background music and other things necessary for work.

The coffee shop actually replaces the traditional office for many and the tax policy responds to this need.