Entertainment is business entertainment if it is provided free of charge to non-employees of the business. This document discusses this in detail, together with its VAT treatment; entertaining overseas customers; corporate hospitality events; dual use; the exceptions; disposal of goods used for business entertainment; staff entertainment including the detail on who is and who isn’t an employee.

Points discussed within this guidance note:

> What is business entertainment?

This note provides an overview of the VAT treatment of business entertainment expenses and what conditions must be satisfied to deem an expense business entertainment for the purpose of vat.

> What is entertainment?

HMRC business entertainment rules include a non-exhaustive list as to what is entertainment, which is defined as provision of hospitality of any kind provided by a taxable person in connection with a business  carried  on by him.

> Who is an employee?

> Who is not an employee?

> VAT treatment

> Entertaining overseas customers

> Dual use

> Exceptions

> Disposal of goods used for business entertainment

> Employee entertainment

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