Coffee at the employer’s expense: does the employee need to pay taxes?

Press service of the State Tax Service of Ukraine, published 06 November 2026 at 12:14 Chapter: News

Coffee or tea during the workday or water from the office cooler are common things for many employees and are often purchased by their employer. But are such beverages considered employee’s income and do they need to be taxed on their cost? No, if coffee, tea and water are for general consumption in the office, employees do not need to pay tax on their cost.

Why is there no taxable income?

Tax Code of Ukraine provides that free meals received by the employee from the employer may, under certain conditions, be considered as additional benefit and be taxable. However, for such taxation to be applicable, it is necessary that income is received by a specific person.

And if the employer purchases water, coffee or tea, which all employees and visitors can freely use in the office, such drinks are not considered personal income of individual employee. Therefore, their cost is not subject to the personal income tax.

When might the rules be different?

It is important to distinguish between drinks for general use, personal benefits or individual benefits.

For example, if the employer reimburses specific employee for their personal expenses to purchase coffee, such compensation requires separate assessment. Depending on the circumstances, it may be considered as additional benefit and subject to taxation.

Is it needed to submit declaration?

No. If the employee simply uses coffee, tea or water that the employer provides for general consumption in the office, there is no need to submit annual assets and income declaration for this.

Therefore, ordinary coffee or tea in the office at the employer’s expense does not create additional tax liabilities for employees, if drinks are available for general consumption.