Normally VAT is not recoverable in respect of entertainment or hospitality of any kind.
BUT
the FTA considers that certain normal incidental office expenses for general use that should not be treated as incurred for entertainment purpose.
Examples of such sundry office expenses on which the FTA accepts a business should be entitled to input tax recovery include:
- Tea and coffee available in the office or provided during meetings for general use by employees and non-employees for no charge;
- Flowers for display in receptions, offices or for decoration during special events;
- Dates, chocolates, or equivalent snacks which may be available in the office or during meetings for general use.
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