Entertaining and VAT

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Can I claim VAT on entertainment expenses?

Entertaining Staff

You can claim back input VAT on the costs of entertaining staff (staff welfare)

If you are entertaining UK clients as well as staff, you have to disallow a proportion of input VAT (based on the numbers of clients and staff)

If the event is to entertain UK customers, and your staff are there to look after those customers, the whole event is regarded as “entertaining”; you cannot reclaim any VAT. 

Entertaining overseas customers

If your business is VAT registered, you may be able to claim back VAT incurred on the cost of entertaining an overseas customer of the business providing it is reasonable (of kind and scale) having regard to all the circumstances.

A claim will not be permitted a if entertaining is part of a corporate event, such as a golf day, day at the races or trip to some other type of event.

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