How to Claim Business Meals in New Zealand (2026 Guide)

Quick answer

New Zealand doesn’t block entertainment the way Australia does, and it doesn’t cap all meals at 50% the way Canada does. Instead, Inland Revenue keeps two lists: what is 50% deductible and what is 100% deductible, neither subject to FBT. This guide goes through both lists, the separate rule for the self-employed, the GST adjustment and the records. Rules are from Inland Revenue in the Sources section, retrieved 10 October 2026.

The 50% list

Entertainment that isn’t completely business related, because it has a significant private element such as taking place away from work or outside usual hours, is 50% deductible and not subject to FBT ^[1] . The list covers ^[1] :

• entertainment at sports or cultural events, such as a corporate box;
• business use of a holiday home;
• hiring a boat and providing food and drink on it;
• food and drink at social events such as parties, or in areas set aside for senior employees;
• gifts of food and drink enjoyed privately by the recipient, such as a bottle of wine for each car buyer;
• supporting costs for 50% entertainment, such as hired glasses and wait staff.

A business lunch with clients is the classic 50% case ^[2] .

The 100% list

These are 100% deductible and not subject to FBT ^[1] :

• meals an employee buys while travelling on business, unless shared with a business contact or at a celebration, which drops them to 50%;
• food and drink at a conference, course or similar event lasting at least 4 hours, unless it’s mainly entertainment;
• light meals for senior managers in a dining room as part of their duties, such as sandwiches at a board meeting;
• entertainment that promotes the business where the public has the same access as staff and contacts, and entertainment that is secondary to a public function or trade display;
• branded promotional items, food for someone reviewing it for publication, and discounted entertainment a business regularly sells at market prices;
• entertainment enjoyed outside New Zealand.

The self-employed

If you’re self-employed or trade through a look-through company, the cost of your own meals is usually private and you generally can’t claim it; working away on its own isn’t enough ^[2] . You may claim extra meal costs if you must work in a remote location or at unusual hours ^[2] . Meals you buy for clients still follow the 50% rule, and meal allowances you pay employees can be deductible ^[2] .

GST on entertainment

You deduct the full GST on entertainment when you pay for it, then make an annual adjustment in Box 9 of 15% of the non-deductible, GST-exclusive amount, on the earlier of your income tax return’s due date and the date you file it ^[3] . Organisations not liable for income tax, such as charities, don’t make the adjustment ^[4] . If an expense isn’t deductible at all, the GST isn’t claimable either ^[2] .

Worked example: a GST-registered business takes a client to lunch for $230 including $30 GST. It claims $30 GST when paying. The GST-exclusive cost is $200, of which $100 is deductible. At year end it adds back 15% of the non-deductible $100, so $15, in Box 9. The net result is $100 deducted and $15 of GST recovered.

Records

Note who attended and why on every meal receipt, because that’s what separates a 100% staff travel meal from a 50% client meal. Keep taxable supply information for anything over $200 ^[4] . The record-keeping guide covers retention.

Common mistakes

• A sole trader claiming their own lunches while working away ^[2] .
• Claiming a staff travel meal shared with a client at 100% ^[1] .
• Missing the 100% treatment for conference food or overseas entertainment ^[1] .
• Forgetting the annual Box 9 GST adjustment ^[3] .
• Deducting the GST-inclusive amount and claiming the GST as well.

Software that helps

ExpenseFlow flags explicit entertaining, such as a client dinner or staff party, and in New Zealand splits the line into a 50% claimable and 50% non-claimable part with the right tax code and account, for you to approve before it syncs to Xero or QuickBooks Online. Meals it can’t classify from the receipt go to review with a written reason. The hospitality guide covers entertainment across a whole business.