Meal vouchers: Definition, Legal Classification and Significance
Meal vouchers, often also referred to as meal coupons, restaurant checks, or meal subsidies, are non-cash benefits issued by the employer to employees to subsidize daily meals. The issuance and use of meal vouchers are regulated by law in many countries, particularly in Germany, Austria, and Switzerland, and are subject to various tax and social security requirements.
Definition and Purpose of Meal Vouchers
Meal vouchers serve as substitute benefits for daily meals within an employment relationship. They generally entitle the holder to receive meals at certain dining establishments or to redeem them at grocery retailers. Employers use meal vouchers to promote the well-being of their employees and to make a financial contribution to daily nutrition.
The legal basis is found especially in the rules governing non-cash compensation for tax purposes and payroll accounting. Meal vouchers are generally considered non-cash benefits, which can be credited to remuneration as a form of monetary value.
Tax Treatment of Meal Vouchers
Requirements for Tax Relief
Meal vouchers generally constitute taxable non-cash benefits. However, the German tax authorities grant certain conditions for privileged tax treatment (§ 8 para. 2 sentence 1, § 8 para. 2 sentences 8 and 9 EStG, R 8.1 LStR). The official non-cash value regularly applies to meal vouchers and similar benefits, provided the vouchers serve the purpose of meals and the legal maximum limits are observed.
Provisions on the Official Non-cash Value
According to the Social Security Remuneration Ordinance (SvEV), an official non-cash value is set annually for meals provided by non-cash benefits or meal vouchers. For the calendar year 2024, the monthly non-cash value for a lunch or dinner is EUR 4.13 per day (as of 2024). If a meal voucher is issued in the amount of the official value, the benefit remains tax- and social security-free.
Tax-exempt Limit and Employee Co-payments
If the value of the meal voucher exceeds the official non-cash value, a tax liability may arise for the excess amount. If the employee makes a co-payment, this is to be deducted from the official value; any remaining value must be taxed and subject to social security as a non-cash benefit.
Flat-rate Taxation
According to § 40 para. 2 EStG, the employer may tax the non-cash benefit of meal vouchers at a flat rate of 25%. This option is frequently used in practice to relieve employees from paying individual taxes.
Social Security Law Treatment
From a social security law perspective as well, meal vouchers are considered remuneration. If the official non-cash value is not exceeded and the vouchers actually require a meal to be obtained, the benefit is contribution-free. Deviations from this must be taken into account in contribution calculations accordingly.
Requirements and Restrictions on the Use of Meal Vouchers
Link to Employment Relationships
The issuance of meal vouchers is generally tied to an existing employment relationship. The vouchers may only be granted to employees for work days on which they are actually working. Issuance for sick days, weekends, or vacation is not legally permitted.
Redeemability and Acceptance Locations
Meal vouchers can be redeemed at participating restaurants, canteens, or retail partners. They are non-transferable and may not be reimbursed for their cash value. Redemption is usually limited to a specific calendar or working day.
Comparable Benefits and Trends
Digital Meal Vouchers
With ongoing digitalization, electronic meal vouchers are gaining significance. These are mostly provided as prepaid cards or digital apps and are subject to the same tax and social security requirements as the classic paper format.
Distinction from Other Non-cash Benefits
Meal vouchers must be clearly distinguished from other non-cash benefits such as gift or fuel cards. Special provisions of the Income Tax Act and Lohnsteuer Richtlinien apply. In the case of gift cards, since the introduction of § 8 para. 1a EStG, it is decisive whether the benefit is provided in kind or in cash.
Retention Obligations, Evidence and Documentation
Employers are required to properly document the issuance and redemption of meal vouchers to withstand possible audits by tax authorities and social security agencies. The retention requirement generally covers six to ten years, based on the provisions of the Fiscal Code and the Commercial Code.
Sanctions for Non-compliance
In the event of improper handling of meal vouchers—such as exceeding the maximum values or illegal cash payouts—tax and social security back payments as well as fines may be imposed.
Conclusion:
From a tax and social security perspective, meal vouchers are significant non-cash benefits subject to numerous legal requirements. Proper handling offers advantages to both employers and employees but necessitates precise legal classification and documentation. Changes in tax and social security law must be observed regularly to ensure legal and planning certainty.
Frequently Asked Questions
May meal vouchers be issued tax-free to employees?
Under certain conditions, meal vouchers can be issued to employees as a tax-free benefit. To qualify for tax-exempt status, meal vouchers must be intended primarily for meals during working hours and must not exceed the official non-cash value. According to § 8 para. 2 sentence 1 EStG, the tax treatment is strictly tied to certain conditions: the voucher must not be cashable; the daily maximum and monthly quota must be observed; and redemption must typically take place at recognized acceptance points (e.g., supermarkets, restaurants). If the benefit is granted as cash or exceeds the non-cash value, tax-exempt treatment may be lost and income tax and social security contributions may be triggered.
Can meal vouchers be granted as part of the 50-euro tax-free limit for non-cash benefits?
Yes, meal vouchers are generally considered a non-cash benefit and can be included in the monthly exemption limit according to § 8 para. 2 sentence 11 EStG up to 50 euros per employee and month. However, it must be ensured that the value per workday and the total monthly value of the meal vouchers do not exceed the exemption limit. In addition, other non-cash benefits (such as fuel or gift vouchers) are counted towards this amount. If the exemption limit is exceeded, the entire amount is subject to tax and social security contributions.
How are meal vouchers treated under social security law?
Meal vouchers are considered non-cash benefits and are generally subject to social security contributions if the tax exemption limits and requirements are not met. If the value of the meal voucher is within the non-cash benefit limit and the tax requirements are met, no social security contributions arise. However, if the exemption limit is exceeded or the benefit is paid in cash, employers and employees must pay social security contributions on the excess amount.
Can mini-jobbers receive meal vouchers?
Mini-jobbers may also receive meal vouchers as tax-free or flat-rate taxable non-cash benefits. It is important that the value of the meal vouchers is included in the mini-jobber’s annual income. As a result, the mini-jobber may potentially exceed the mini-job earnings limit of 538 euros per month (as of 2024). Otherwise, the same requirements for tax and contribution exemption apply to mini-jobbers as for regular employees.
Are there restrictions on redeeming meal vouchers?
Yes, the use of meal vouchers is restricted in various ways. Vouchers may only be used for meals and not for other goods; the legal framework provides for their use at acceptance points such as restaurants, bakeries, supermarkets (only for ready-to-eat food). Furthermore, meal vouchers are not transferable or redeemable for cash. A time restriction must also be observed: typically, meal vouchers must be used within the calendar month or within a specific period, depending on company policy.
How should meal vouchers be handled for home office or business travel?
Employees working from home or on business trips are generally not excluded from being granted meal vouchers. However, if the employer already provides employees with tax-free per diems or meal allowances in connection with business travel or off-site work, no additional tax-free meal vouchers may be granted. Double benefits would violate tax regulations. This must be accurately documented in the monthly payroll and salary accounting.
Do meal vouchers affect the tax treatment of travel expenses?
Meal vouchers and travel expense reimbursements must be distinguished precisely for tax purposes. If a meal voucher is used or handed out during travel or off-site work, the deductible per diem for additional meal expenses must be reduced by the value of the meal voucher. Otherwise, there is a risk of inadmissible double benefits or tax disadvantages, which can be objected to in payroll tax audits. Careful recording and offsetting are therefore required.
Do employers have to document the granting of meal vouchers?
Employers are required to fully document the issuance and value of meal vouchers. This includes both the number of vouchers issued and their redemption for each work week or month. The documentation serves as proof of compliance with tax requirements under the Income Tax Act and social security law in case of a payroll tax audit. Inadequate documentation can lead to subsequent taxation and recalculation of social security contributions.
