C-371/07; [2008]
The European Court of Justice (ECJ) has ruled in a landmark VAT case that focused on business entertainment.
The main issue concerned whether canteen meals provided to staff or clients free of charge were a deemed supply for VAT purposes.
The ECJ accepted that expenditure on accommodation, food, hospitality and entertainment is capable of being for business purposes.
Other aspects that this case may give rise to VAT claims are directors' accommodation, entertaining overseas clients and catering for work meetings.
