Entertainment VAT worth millions to be reclaimed

The Treasury could be liable to refund hundreds of millions of pounds in VAT to taxpayers that have spent money entertaining foreign clients.

Businesses in line to receive the reimbursement include exporters in areas of defence and drugs manufacturing, according to telegraph.co.uk

The prospect of a refund follows an EU VAT ruling which covers the taxpayers and the money spent on corporate entertainment over the past 12 years.

The ruling is set to cause a wave of companies seeking to lodge claims for backdated VAT paid.

Marc Welby, senior tax partner at BDO Stoy Hayward, said he is currently submitting claims on behalf of clients.

'It is a simple exercise and the company only needs to demonstrate what it spent in VAT recently,' he said.

Further Reading:

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