When organizing a staff event, such as a barbecue or team building, the VAT on expenses can be deducted if the event constitutes a collective social benefit. This means all staff members must be invited, even if not everyone participates. To be considered a collective benefit, the event must be open to the entire company’s staff.
Even if the VAT on the event’s expenses is deductible, existing rules and limitations must be respected, including the required information on invoices. Only employees and management can benefit from this deduction. Expenses related to clients or suppliers are considered reception costs, for which VAT deduction is excluded.
Including employees’ partners in these events is a delicate matter. Some tax inspectors may refuse the VAT deduction, although case law, such as the 2007 Antwerp decision, has sometimes accepted this practice. It is prudent to check the stance of local tax authorities before inviting employees’ partners.
Restaurant and catering costs are generally not deductible, even for staff events. However, there is an exception: if the event is self-service, where the company buys the food and drinks and the staff handles the service, VAT can be deducted. Similarly, if a caterer delivers meals without additional service, VAT is also deductible, as it is considered a simple delivery of goods.
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