This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

It’s showtime! VAT and business entertainment

Shared from Tax Insider: It’s showtime! VAT and business entertainment
By Andrew Needham, October 2021

Andrew Needham looks at the recovery of VAT on business entertainment.

Business entertainment

The recovery of VAT on business entertainment is normally blocked by legislation, but there are some circumstances when VAT recovery is permitted. Business entertainment is considered to be the entertainment of people who are not employees of the business, for example, customers or business contacts. In most cases, businesses can recover the VAT on staff entertainment as it is a legitimate business expense.

When is entertainment not entertainment

If a business entertains people who are not employees but makes a charge for it or is contractually obliged to do so, it does not count as entertainment, and input tax on related costs can be recovered.
For example, if staff contribute to the cost of entertaining their partners, the input tax on the partners

This is one of our 2098 Premium articles

To see this article in full and unlock access to our complete library of 2098 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Start your free trial today

Interested in receiving the latest monthly tax saving tips? Start your 14 day free trial to our newsletters today.