VAT on Business Entertainment

June 3, 2026 · WOWERI

Understand how to account for VAT on business entertainment. This guide will help you navigate the complexities of VAT on entertainment provided by your business. Read on to learn more.

Introduction to VAT on Business Entertainment

VAT (Value Added Tax) is a crucial aspect of doing business in the UK. When it comes to business entertainment, it's essential to understand how to account for VAT on such events. This guide will cover the key aspects of VAT on business entertainment and provide guidance on how to properly account for VAT on entertainment provided by your business.

Accounting for VAT on Business Entertainment

To account for VAT on business entertainment, you need to understand the basic principles of VAT and how they apply to your business. VAT is typically charged on goods and services acquired for business, including business entertainment. However, there are some exceptions and nuances to consider when accounting for VAT on business entertainment.

Exceptions and Nuances

Some types of business entertainment are exempt from VAT or subject to reduced rates. For example, entertainment provided to employees, such as Christmas parties or corporate events, may be exempt from VAT. However, entertainment provided to clients or suppliers is usually subject to the standard rate of VAT.

Conclusion

VAT on business entertainment can be complex and requires careful consideration. By understanding the basic principles of VAT and the nuances of business entertainment, you can ensure proper accounting for VAT on entertainment provided by your business. For more information, refer to Business Entertainment and VAT (VAT Notice 700/65).

Source: gov.uk