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Freebies to customers: VAT recoverability?

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Got a client in the sporting sector (deer stalking to be precise). If the weather is terrible to the extent that it puts a dampener on the customer experience (no pun intended!), they often provide them with a couple of complimentary drinks afterwards in their restaurant.

I presume this can still be treated as covered by the consideration paid for the shoot (several hundred £££s), and input VAT on the provision of the drinks claimed accordingly (with no output VAT charge arising).

Would welcome any views on this matter.

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By lesley.barnes
15th Aug 2021 11:06

www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit43400 does this help? I would have said that it would be ok to claim back the VAT on the drinks. Does you client provide food or drinks as part of the package whilst the paying guests are on the shoot or before they go out perhaps at a briefing before they start the same principle would apply. The fact that your client doesn't offer drinks everytime I don't think matters.

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