Vat code Entertainment

Yazi Registered Posts: 225 Dedicated contributor 🦉

Anyone know what Sage Vat code for Entertainment (not staff)? please- (alcoholic drinks) T0?



  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    I don't think there is a separate VAT code for Entertainment - under sage

    Entertainment both for staff and customers is classified as an expense.

    BUT entertainment expense may not / is not allowed for taxable expense, though I am not sure about VAT

    In practice I have claimed VAT by using T1 in sage. I have had a vat inspection and the claim has not been challenged, but I am sure some one who is taking a Business tax unit may comment on this.

    My understanding on sage vat code is

    T0 – (T zero) – for zero rated transactions
    T1 – Standard rated transactions (currently 15%)
    T2 – Exempt transactions
    T3 – not in regular use
    T4 – for standard rated sales to EU customers
    T5 – lower rate of VAT (currently 5%)
    T6 – not in regular use
    T7 – purchase of zero rated goods from EU suppliers
    T8 – purchase of standard rated goods from EU suppliers
    T9 – outside the scope of VAT
    T10-T99 – not in regular use

    Hope this helps
  • Pinkjo
    Pinkjo Registered Posts: 88 Regular contributor ⭐
    I have always used T2 for entertainment, as you are not allowed to claim the VAT back.
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