Tax consultant gastronomy
Efficient tax advice for restaurateurs
Do you run a restaurant, café or bar and want to ensure that all tax requirements are met at the same time? As a cash-intensive business, the sector has been the focus of the tax authorities for several years now. Restaurateurs are increasingly complaining about tax audits. The additional assessments that are often made are perceived as arbitrary.
Good advice instead of expensive training fees
Do you sell more espresso or coffee? How many cups are made from 100 grams of coffee? How long is your beer line and how high is your draught loss? Do you know the parry volume of a leg of lamb or that of a cutlet from the topside? How many pizzas are made from 10 kilograms of flour? What is the mark-up rate from your kitchen calculation?
If you can answer all these questions, then you are well positioned in terms of business management. In the worst case scenario, you will receive the answers from your auditor.
From good restaurateur to better entrepreneur
As industry experts and specialized tax consultants for the hospitality industry, it is our job to raise your awareness and familiarize you with your own figures. It goes without saying that we will guide you through an audit with help and advice. What is more important is that you understand your business from a business management and tax law perspective. With industry-specific expertise, I will support you in all tax and business management issues - from ongoing bookkeeping to the support and handling of tax audits.
That will be expensive
Would you like to hear this sentence from the tax auditor or your tax advisor?
After a tax audit, you often have to pay an expensive penalty. At best, the payment hurts and at worst it can threaten the company's existence.
A good consultancy service is the best investment in your business and is many times cheaper than a failed tax audit.
The added value of a specialized tax advisor in the hospitality industry
Tax consultants are indispensable partners for restaurateurs. A specialized tax advisor offers optimized tax advice and is a valuable help with industry-specific challenges. Restaurateurs benefit from a tax consultant specializing in their industry, as they then receive targeted support with complex tax and accounting requirements as well as with business management issues such as market positioning.
In addition, specialized tax advisors help restaurateurs overcome challenges such as setting up a cash register system, figuring out mark-ups and consequently maximizing profits, which is especially relevant for the restaurant industry. So, whether it's VAT, payroll tax or financial accounting, a specialist tax advisor is an indispensable partner for any restaurateur.
Industry knowledge
Specialized tax consultants offer restaurateurs industry-specific support with tax, accounting and business management challenges, especially when setting up POS systems.
Corporate management
Tax consultants are indispensable for restaurateurs, especially when running a business, and provide support with business planning, personnel planning, financing and all ongoing tax matters.
Legal certainty
Efficient and legally compliant accounting and cash management in the hospitality industry is essential, and digital tools can increase efficiency. Legal certainty in the correct application of standard rates minimizes the tax burden.
In no other sector are additional charges made as frequently as in the catering industry.
What are the causes? Many restaurateurs have little prior knowledge of business management and taxation. They assume that only kitchen quality, coupled with good service, determines the success of the restaurant. However, at the latest when the auditor confronts the restaurateur with a recalculation and calculates differences in bar output based on the carbon dioxide purchased, they realize that good cuisine alone is not enough.
The role of the tax advisor in managing your restaurant business
Running a restaurant business is a complex task in which a tax advisor plays an important role. Tax advisors support restaurateurs with:
By advising on business planning and ongoing financial issues, tax consultants play an important role in the success of hospitality businesses.
Business planning and strategy in gastronomy
Solid business planning and strategy are the foundation of a successful restaurant business. And this is where the tax consultant comes into play. As a specialized tax consultant, I support restaurateurs with:
Our tax firm works closely with restaurateurs and the hotel industry to meet this challenge.
A good business plan, drawn up in collaboration with a tax consultant, gives you a clear idea of your goals and expectations. It helps you to organize your business processes, optimize your financial management and use your resources efficiently. And the best thing about it? You have an expert at your side to support you every step of the way.
Ongoing tax support in the hospitality industry
Setting up and running a restaurant business requires not only sound initial planning, but also ongoing tax support. Timely compliance with tax obligations is an essential part of tax planning for restaurateurs. Tax advisors support restaurateurs in this area with regular status meetings and up-to-date newsletters that inform them about new developments and requirements in the restaurant business.
Due to the size of their business, many restaurateurs are exempt from the double-entry bookkeeping requirement and can use a revenue-surplus account (EÜR). A specialist tax consultant can help you to take full advantage of these benefits and meet your tax obligations efficiently. This allows you to concentrate on what you do best - delighting your guests with excellent food and service.
Optimization of accounting and cash management in the hospitality industry
Bookkeeping and cash management are crucial aspects of tax advice in the hospitality industry. Error-free bookkeeping is essential to avoid expensive problems with the tax office. A tax consultant specializing in the catering industry not only provides support in the area of tax declarations, but is also a great help in financial and payroll accounting as well as in contact with the authorities. Compliance with the GoBD guidelines is particularly important in order to meet legal requirements.
Efficient handling of financial accounting in the hospitality industry
In the modern world of tax consulting, service providers are increasingly using digital tools to enable efficient data exchange and minimize the effort involved in bookkeeping. Cloud-based accounting software allows restaurateurs to manage their finances online and in real time from any device. With modern accounting software for the hospitality industry, receipts can be scanned using a mobile app and relevant data can be captured automatically using intelligent text recognition.
In addition, our comprehensive dashboard in the accounting software provides up-to-date summaries of:
This supports efficient company management. Thanks to modern software solutions, separate access can be created for tax consultants, which facilitates collaboration and support in financial management.
Secure cash accounting saves hassle and taxes
The security of cash register accounting is another important aspect that restaurateurs should consider when seeking tax advice. Since 2016, restaurateurs have had to use cash register systems that meet the tax requirements of the tax office and are tamper-proof. Since 2020, it has also been mandatory for cash register systems in restaurants to be equipped with a technical security device to prevent tampering.
A secure cash accounting system should have the following features:
Accounting software developed specifically for the hospitality industry can store documents in such a way that they comply with retention requirements and thus support compliance with statutory accounting regulations.
Dealing with VAT and other types of tax in the hospitality industry
The correct application of VAT rates and the handling of trade and payroll tax are other important aspects in which I support restaurateurs as a tax consultant. VAT in the hospitality industry is complex due to the many transactions and different tax rates, which vary depending on the type of hospitality and the circumstances.
A tax consultant specializing in the hospitality industry helps companies to correctly pass on VAT to customers and to structure prices and tax labels in accordance with the regulations. They also help with the calculation and use of the trade tax allowance in order to minimize the trade tax burden.
The correct application of different VAT rates in the hospitality industry
The correct application of VAT rates in the hospitality industry can be complex. The various VAT rates must be taken into account here:
Drinks in the catering trade, including luxury items and alcohol, are generally taxed at 19%. Mixed milk drinks with a milk content of over 75 percent and conventional smoothies for consumption at bar tables or off-premises are subject to the reduced rate of 7 percent. It is important to note that the application of the VAT rate may vary depending on whether reusable or disposable tableware is used.
Focus on trade tax and wage tax
In addition to VAT, trade tax and payroll tax are also important aspects of tax advice in the catering industry. Trade tax is calculated from the annual profit of the business and is multiplied by a uniform tax rate of 3.5 percent and the assessment rate of the respective municipality. Sole proprietors and partnerships in the hospitality industry can claim a trade tax allowance of up to EUR 24,500 per year.
Furthermore, catering businesses are obliged to pay their employees' wage tax to the tax office on a monthly basis. Benefits in kind such as free meals for employees must be correctly recorded and taxed in the hospitality industry. In addition, bonuses for vacation and night work in the hospitality industry can remain tax and contribution-free under certain conditions, provided they are paid in addition to the basic salary for work actually performed and are properly documented.
Avoiding common tax pitfalls in the hospitality industry
Even though tax advice in the restaurant industry offers many advantages, there are still some pitfalls that restaurateurs should avoid. Common tax mistakes in the restaurant industry include errors in the treatment of one's own business in tax returns and not taking VAT into account in price calculations, which can lead to financial problems.
Incorrect information, such as the failure to declare employees or the correct own consumption of food and drink, can lead to high penalties. It is also particularly important to correctly record withdrawals in kind as part of own consumption in order to minimize tax risks.
Correct recording of material withdrawals
The correct recording of non-cash withdrawals is another important aspect of tax advice in the catering industry. In the catering industry, relevant documents such as delivery bills and receipts for non-cash withdrawals must be kept for several years. Lump sums set by the Federal Ministry of Finance simplify the documentation of private withdrawals of goods, also known as own consumption, and are updated annually on the basis of household expenditure on food and beverages. It is very important to comply with all guidelines and regulations.
No personal use is recognized for children up to two years of age, and half of the lump sum is recognized for children from two to twelve years of age. The values of non-cash withdrawals should be posted monthly or quarterly, in line with the submission of advance VAT returns, or at the end of the year if no advance returns are submitted. It is important to keep an eye on the relevant figures.
Registration and payroll accounting for employees in the catering industry
Another important aspect of tax advice in the catering industry is the correct registration and accounting of employees. Catering businesses must not overlook the importance of immediate notifications, which must be submitted to the pension insurance fund at the start of employment. Immediate notifications must contain the employee's personal data.
Failure to comply with the regulations for immediate reporting can result in severe penalties for catering businesses. As a specialized tax consultant, I can help you to comply with these regulations and thus avoid expensive penalties.
Tax saving strategies: How your tax advisor can help you cut costs
As well as providing support with tax returns and business management advice, a tax consultant can also help restaurateurs to save tax. Restaurateurs can save taxes by:
Recognize deductible operating expenses
Recognizing deductible business expenses is another important aspect of tax savings. Detailed documentation of business expenses is crucial for tax deductibility in the hospitality industry, especially for deductible items such as equipment, workwear and marketing activities.
Tax-deductible operating expenses in the hospitality industry include
Business meals can be deducted as business expenses. In this case, 70 % of the reasonable and proven entertainment costs are recognized and the associated VAT is fully deductible.
Tax optimization through business consulting
Another strategy for tax savings is business consulting. Business evaluations prepared by tax consultants provide a sound basis for planning and setting targets in the next financial year to reduce the tax burden.
The business management evaluations carried out by our tax office have the following advantages for restaurateurs:
Tax consultant gastronomy
Frequently asked questions
Get in touch with us!
You can rely on our many years of experience and tried-and-tested expertise. We provide tax advice to clients from all over Germany. Our team speaks fluent German, English and Greek.