Home cooked meal and tax obligations
After our consultation with Tax office, here are some things you need to keep in mind. In principle, you are not obliged to declare to the tax authorities if you can show that your meal price is more or less equal to your expenses when preparing the meal. Bear in mind that the expenses are not only to cover the ingredients but also your electricity, water, gas usage when making the meal and also for example the ingredients that you already have in your kitchen cabinet. Moreover, you can also include the cost of kitchen utilities that is required to prepare the meal (pan, food processor). We aim for the chef that they save on their own shopping costs, because it is more cheaper to shop in larger volumes.
We have previously asked 3 chefs to share all the information about a meal with us (ingredients costs, utility costs, and appliance costs). Based on this, we have calculated that most of the meal price is more or less equal to the cost.
At some meals there seemed to be a small margin. This means that some chef might have a small ‘profit’ on an annual basis. The tax authorities concluded that most of the time it is a low amounts. Which makes it economically and fiscally not interesting for the tax authorities. We therefore consider the chance that they would ever check with chef is very small.
If you are still worried as a chef, it is good to know the following. If you were to get control from the tax authorities, you must be able to demonstrate that there is no income. You can do this by saving receipts for a couple of meals and calculating how purchasing price relates to the meal price. You do not have to keep an administration of all your cooked meals and shopping receipts!
Please see this link as a reference from belastingdienst website by clicking here – “When do you need to pay income tax?”
*Note: If you think you are making a profit via this platform, it is your responsibility to report it to the tax authorities. Masakan Ibu are not allowed to advice whether you should do this or not.
If you still have further questions, please feel free to contact us at firstname.lastname@example.org