Mixed Business entertainment expenses and other business expenses for VAT purposes

You can only reclaim the VAT on the proportion of your expenses that are not used for the business entertainment and are used for the business purposes. For example, if you entertain employees and customers together, you may be able to reclaim the VAT on the proportion of the expenses that relate to the employee entertainment.

For the tax purposes, you must record the full names of your company employees, and the full names of all business guests, together with the name of the company for which they work.

But you cannot reclaim any VAT at all if the sole purpose of the business entertainment is to entertain a non-employee - for instance, if you act as a host to a non-employee.

AdviceRaminta Salkauskiene