Can I reclaim VAT on team dinner/ lunch?
Can I reclaim VAT on team dinner/ lunch?
Bryce Dsouza
No, you cannot reclaim VAT on team dinner/lunch. According to the Federal Tax Authority (FTA) of the United Arab Emirates, taxable businesses will not be able to reclaim value-added tax (VAT) paid on staff parties and gifts, or any food and drinks that are provided outside of work meetings. However, a simple, non-extravagant lunch with a customer as part of a business meeting or having food and soft drinks delivered to the office and consumed during the course of a meeting will be allowed for input VAT recovery.
Sam Alex
I believe yes, usually employee entertainment costs are treated as an allowable business expense, so you can reclaim tax, I suggest you should consult a tax consultant before making any move