A restaurant can deduct almost everything tied to its operation — ingredients, energy, wages, and the depreciation of kitchen equipment. The tricky parts are spoiled food, stock shortages, and the different VAT rates on meals and drinks. And here Slovakia and Czechia, though neighbours, apply noticeably different rules — mixing them up is a costly mistake.
Which restaurant costs are tax-deductible?
In both countries the basic rule is the same: a tax-deductible expense is one demonstrably incurred to earn taxable income, properly booked and backed by a document. For a restaurant that covers ingredients and drinks, kitchen and service wages including levies, rent, energy, cleaning supplies, waste disposal, mandatory gas and ventilation inspections, and fees for POS and reservation software.
Larger equipment — combi ovens, cold rooms, draught systems, dining-room furniture — is not expensed at once but depreciated over several years. The threshold for tangible assets differs: in Slovakia it is 1,700 EUR, in Czechia 80,000 CZK. Slovak clients can read more in our overview of Slovak tax advisory. In both countries, watch the line between a business cost and the owner’s private consumption.
How does restaurant VAT differ in Slovakia and Czechia in 2026?
This is where the two systems part ways. In Slovakia, a meal served with supporting services (staff, seating, washable dishes) carries a reduced 5 % rate, non-alcoholic and low-alcohol drinks up to 0.5 % carry 19 %, while alcoholic drinks and any take-away sale without service fall into the standard 23 % rate.
In Czechia, the logic is simpler: food served as a catering service, non-alcoholic drinks and the sale of foodstuffs all sit at the reduced 12 % rate, whereas alcoholic drinks including draught beer jump to the standard 21 %. Example: a beer with a meal is taxed at 23 % in Slovakia but 21 % in Czechia, while the meal itself is 5 % in Slovakia and 12 % in Czechia. The POS system must have the right product groups in each country.
When is a stock shortage a tax expense?
Both countries treat shortages strictly. Under Slovak law (Section 21(2)(e) of the Income Tax Act) and Czech law (Section 25(1)(n) of the Czech Income Tax Act), shortages and damages exceeding received compensation are not deductible. If goods are missing and no one reimburses you, you cannot reduce your tax base by that value.
The exception is damage you did not cause. In Slovakia (Section 19(3)(g)) and Czechia (Section 24(2)(l)), damage from natural disasters and theft by an unknown perpetrator confirmed by the police is fully deductible. In both jurisdictions you need documentation — a police or insurance confirmation.
How to handle write-offs and disposal of food?
Perishable food spoils; in gastronomy that is routine, not an error. When goods pass their use-by or best-before date and must be disposed of, the cost can be claimed in both countries provided you can prove it. The key is a disposal record showing the date, type and quantity of the written-off goods, the reason, and the signature of the responsible person.
Without such evidence the tax authority may treat the missing goods as a shortage beyond norms and disallow the cost. A daily write-off log — how much was spoiled, discarded, or used for tastings and staff meals — is the simplest protection.
What about wastage norms and natural loss?
Not every loss is a problem. Both the Slovak and Czech laws state that natural wastage and retail shrinkage up to an economically justified norm set by the taxpayer are not treated as damage — and therefore remain deductible. In practice you set realistic percentages for evaporation, trimming, and draught-beer losses, and losses within that norm are recognised.
The norm must match the nature of the operation and cannot be used to hide real shortages from negligence or staff theft. Set it conservatively and support it with operational experience. Tight stock and inventory records are your best defence in an audit.
What are the most common accounting mistakes in gastro?
The first is a mis-configured POS, where meals, drinks and take-away are lumped into one rate — a frequent trigger for additional assessments in both countries. The second is missing write-off and shortage records, without which the cost will not stand. The third is mixing private and business consumption by running the owner’s personal purchases through the business — clean books are, after all, the foundation of every successful company.
A restaurant that keeps clean records of disposals, shortage norms and VAT rates protects tens of thousands of euros — or hundreds of thousands of korunas — of costs that would otherwise be disallowed, plus the related tax and late-payment interest.
Not sure which of your operating costs are truly deductible, or how to set VAT on food and drinks in Slovakia or Czechia? We are happy to help.
FAQ
What VAT rate applies to a meal served in a restaurant in 2026?
In Slovakia a meal served with table service carries a reduced 5 % rate, non-alcoholic drinks 19 %, and alcohol or take-away 23 %. In Czechia the meal and non-alcoholic drinks sit at 12 %, while alcohol including draught beer is 21 %. The decisive factor is whether supporting services accompany the food and whether the drink is alcoholic.
Can I deduct food that has spoiled?
Yes, if you can prove the disposal. Prepare a disposal record with the date, type and quantity of the written-off goods and the reason. Without documentation the tax authority may treat it as a shortage beyond norms and disallow it. A running daily write-off log is essential in gastronomy in both Slovakia and Czechia.
Is theft of restaurant stock a tax expense?
Theft by an unknown perpetrator is fully deductible if confirmed by the police — under Section 19(3)(g) in Slovakia and Section 24(2)(l) in Czechia. Without a police confirmation it is a shortage exceeding compensation, which is not deductible. Damage from natural disasters is likewise fully recognised.