What considers food as a business expense?

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According to Canada Revenue Agency (CRA),  You can claim up to 50% of the lesser of the following amounts for food, beverages, and entertainment expenses:

- The amount you spend on the expenses

- The reasonable amount given the circumstances

When you travel or attend a convention, conference, or similar event, these limits also apply to the cost of your meals. In some circumstances, however, extra regulations may apply to your meal claim. See Travel for more details.

These limits do not apply if any of the following apply:

• Your business regularly provides food, beverages, or entertainment to customers for compensation (for example, a restaurant, hotel, or motel).
• You bill your client or customer for the meal and entertainment costs, and you show these costs on the bill.
• You include the amount of the meal and entertainment expenses in an employee's income or would include them if the employee did not work at a remote or special work location. In addition, the amount cannot be paid or payable for a conference, convention, seminar, or similar event and the special work location must be at least 30 kilometers from the closest urban centre with a population of 40,000 or more. For more information about urban centres, go to Statistics Canada's Population and Dwelling Count Highlight Tables.
• You incur meal and entertainment expenses for an office party or similar event, and you invite all your employees from a particular location. The limit is six such events per year.
• The meal and entertainment expenses you incur are for a fund-raising event that was mainly for the benefit of a registered charity.
• You provide meals to an employee housed at a temporary work camp constructed or installed specifically to provide meals and accommodation to employees working at a construction site (note that the employee cannot be expected to return home daily).

For more details about Meals and Entertainment, please click here.

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