The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of business entertainment expenses.
For a flowchart containing details of when VAT is recoverable on entertaining expenses, see Flowchart - claiming input VAT on entertaining expenses.
For a discussion of case law relating to this topic, see the Business and staff entertaining – relevant VAT case law guidance note.
Entertainment is deemed to be business entertainment if all of the following conditions are satisfied:
Please see below regarding the provision of entertainment to overseas customers.
Entertainment is described as the provision of hospitality of any kind provided by a taxable person in connection with a business carried on by him. Entertainment includes the provision of the following (this list is not exhaustive):
For the purposes of these provisions the following are regarded as employees:
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