Christmas is approaching, and the festive atmosphere is starting to surround us with Christmas songs, decorations, and lights. Many companies give gifts to their employees and contractors during this time. However, it is important to properly settle Christmas expenses for VAT purposes, as tax authorities will not overlook any irregularities. Deducting VAT from expenses for organizing holiday meetings may be questioned, including expenses on alcohol, additional attractions, and catering services. The source of financing for the holiday meeting also affects the right to deduction. Furthermore, the participants in the Christmas Eve celebration, such as employees’ families and B2B colleagues, may impact the right to deduct input VAT.
Source MDDP
