HMRC Revises VAT Guidance on Business Entertaining
Tax News » VAT & Excise Duties

HM Revenue & Customs has updated its VAT Notice 700/65 Business Entertainment to take account of changes in the rules relating to entertaining overseas customers.

This has proved necessary in light of the ECJ ruling in the case of Danfoss and AstraZeneca (Case-371/07), wherein the ECJ found fault with HMRC's previous position of rejecting any VAT claim for business entertaining in any circumstances.

The guidance does its best to limit the scope of any possible reclaim, as did the preceding Revenue & Customs Brief 44/10 - VAT: Change in the Tax Treatment of Entertainment of Overseas Customers. One key factor will be any corresponding Output VAT charge relating to "private use" in respect of the entertainment. 

For further information, please also see our article - That's Entertainment!

Comments
Only registered users can write comments!

Written by Lee Sharpe

About The Author
TW Articles Editor
Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.

Article Added Tuesday, 22 November 2011

To view this text online, go to:
http://www.taxationweb.co.uk/tax-news/vat-excise-duties/hmrc-revises-vat-guidance-on-business-entertaining.html
Disclaimer:
The content is based on tax legislation in operation at the time of publication, which may subsequently have changed. Whilst every care has been taken in its production, neither the author nor TaxationWeb Ltd. can accept responsibility for any action undertaken or refrained from as a consequence of this material.
Copyright © 2014 TaxationWeb Ltd, All rights reserved, All information is property of TaxationWeb Ltd. (unless stated otherwise) and cannot be reproduced in any format for any purposes without the prior written permission of TaxationWeb Ltd.