Tax Rules for Lunch Scheme - Officeguru

Worth knowing about lunch schemes - Taxation according to SKAT

When you offer a lunch scheme as an employer, it's important to know the tax rules from SKAT. Here are the most important rules to be aware of:

When is the lunch scheme tax-free?

A lunch scheme is tax-free for the employee if the following conditions are met:

The employee pays at least for a standard meal without drinks or with drinks.

The meal is considered a standard meal (for example, three pieces of sandwiches or regular hot dishes).

When does the lunch become taxable?

If the employee pays less than the mentioned rates, the difference between the market value and the employee's payment is taxable. This also applies when serving luxury food, which is taxed at market value. Note that SKAT does not have a fixed definition of luxury food, but both price and quality are included in the assessment.

Food from an external supplier

A lunch scheme can still be tax-free even if the food is delivered from an external supplier if the following requirements are met:

• The food is purchased for the canteen and made available for self-service.
• A fixed number of meals is ordered regardless of employee attendance (with the possibility of adjustment during vacation periods and the like).

Canceling employees' lunch must not affect their payment, which must follow a fixed rate. However, cancellations can reduce the company's payment to the supplier and reduce food waste. With OfficeGuru, it's easy to manage sign-ups, sign-outs and vacation periods. Read more about our app here: Officeguru lunch app.

⚠️ Note: Officeguru does not offer tax advice. We recommend that you read more at SKAT's guidance on canteen schemes for complete information.

Find a lunch plan that fits your budget

The price of a lunch plan varies depending on several factors:

• The number of employees.

• Number of delivery days per week.

• The composition and quality of the meal.

Typical price levels are between 45-70 kr. per meal. Small businesses may want to start with fewer weekly deliveries to test the scheme.

👉 Get a quote from Officeguru and get a solution that matches your needs and budget.

Get a handle on lunch scheme requirements

To ensure tax exemption in your lunch program, the following requirements must be met:

• The employee must pay with taxed funds (payment via cash payroll deduction is not allowed).

• The meal must be available to all employees.

• For fixed monthly payments, the amount must correspond to the number of working days in the month.

At Officeguru, we help over 300 companies every day to offer a tasty and properly managed lunch program. We also have partners who can help with tax advice, so you always follow the rules.

Let Officeguru help you find the right lunch program

At Officeguru, you get:

• Customised solutions for companies of all sizes.

• Choose from buffets, sandwiches, hot dishes, portioned meals and much more.

• Volume discounts and flexible arrangements to suit your needs.

• Access to our user-friendly lunch app for easy ordering and management.

👉 Get a no-obligation quote today and discover how a good lunch program can improve the work environment and employee well-being.

Main keywords used: lunch plan, lunch plans, lunch plan tax, lunch plan taxation, company lunch plan, lunch plan price, lunch plan rules, VAT lunch plan.

Read more about our lunch programs at Officeguru.dk.

Gross salary scheme as an alternative - An opportunity for tax benefits

In addition to the regular tax-free lunch schemes, companies can also choose to offer the lunch scheme via a gross salary scheme. This means that the employee accepts a reduction in their gross salary in exchange for an employee benefit - in this case, lunch. According to SKAT, a gross salary scheme can be tax-free if certain conditions are met.

Conditions for tax exemption for gross salary schemes:

• There must be a real, forward-looking change in the salary agreement.

• The arrangement must apply over the entire collective agreement period (typically at least 12 months).

• The reduction in salary must be a fixed amount and not dependent on the employee's consumption.

• The employee must voluntarily join the scheme and be able to leave with reasonable notice.

• The employer must have a financial risk in the scheme.

👉 Read the full binding answer from SKAT here: SKM2007.674.SR

The difference between the ordinary lunch scheme and the gross salary scheme

Below is an overview of the main differences between an ordinary tax-free lunch scheme and a lunch scheme via a gross salary scheme:

Tax liability

Ordinary lunch scheme: Tax-free if the employee pays min. 15/20 kr.

Gross salary scheme: Tax-free if the conditions for a gross salary scheme are met

Payment method

Ordinary lunch scheme: Self-payment with taxed funds

Gross salary scheme: Reduction in gross salary

Flexibility

Regular lunch scheme: Typically paid per day or month

Gross salary scheme: Commitment during the collective agreement period

Financial risk (employer)

Regular lunch scheme: No significant risk

Gross salary scheme: The employer has financial obligation

Termination option

Regular lunch scheme: Flexible opt-out

Gross salary scheme: Withdraw at salary negotiation with notice

Benefit for the employee

Regular lunch scheme: Simple solution with minimal administration

Gross salary plan: Possibility of lower tax base

Advantage for the employer

Regular lunch scheme: Simple administration

Gross salary scheme: Possibility to offer more benefits tax-free

What should you choose?

The choice between a regular lunch scheme and a gross salary scheme depends on the company's needs and employee preferences. The gross salary scheme can be an advantage for employees with high marginal tax rates, while the regular scheme offers more flexibility.

At Officeguru, we can help you understand the differences and find the solution that best suits your business.

👉 Contact us today to learn more about the lunch scheme options at Officeguru.