Input tax ― staff and business entertainment

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the rules for recovering VAT on entertainment. In particular, it consider the scope of the input tax ‘block’ for business entertainment.

For an overview of input tax more broadly, see the Input tax ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V3.446.

Basics of input tax recovery on entertainment

There is a specific input tax block on goods and services used for ‘business entertainment’. The effect of this block is that VAT cannot be recovered even if the other normal conditions for input tax recovery are satisfied (as set out in the Input tax ― conditions for recovering VAT guidance note). There is an exception to the block for the entertainment of overseas customers. VAT is technically recoverable in relation to such business entertainment, but subject to quite stringent conditions (at least in HMRC’s view).

Determining when

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more

Tax Returns

Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more

Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more

UU��ֱ��