Claiming VAT on costs relating to business entertaining

In general VAT legislation does not allow you to claim VAT that you incur on costs relating to Business Entertainment. VAT legislation describes Business Entertainment as being the free of charge provision of food, accommodation and entertainment of any kind to UK based people who are not your employees.

This restriction does not apply to VAT you incur on costs relating to Business Entertainment provided to overseas clients visiting the UK. However if the Business Entertainment includes, what HMRC considers to be a private benefit for the overseas client, you may be required to account for VAT on this private benefit.

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