Vat code Entertainment

Yazi

Hi

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

Thanks

sdv

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

I have always used T2 for entertainment, as you are not allowed to claim the VAT back.