- VAT incurred on the cost of Christmas parties can be recovered by employers
- VAT recovery may be restricted under partial exemption or non-business activities
- VAT cannot be recovered for events attended by non-employees
- Apportionment based on head count is necessary for events attended by both employees and non-employees
- VAT is blocked from recovery if the event is for entertaining non-employees, even if a small number of employees attend.
Source: saffery.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
