Whisky given to employee: gift or entertainment?

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Perhaps I'm overthinking this...

The definition of 'employee entertainment' per VAT notice 700/65 includes 'provision of food and drink' - on which any VAT suffered may be reclaimed as input tax.

However, the business gift rules per VAT notice 700/7 state that an output tax charge arises on business gifts over £50.

So if an employer gives an employee a £65 bottle of whisky, should it be treated as employee entertainment, or as a business gift and output VAT charged?

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By David Ex
04th Aug 2022 16:49

https://www.spicerandco.co.uk/the-tax-rules-of-christmas-gifts-and-celeb...

I’d say it’s a gift - unless they are required to drink it during work hours at work.

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By Tax Dragon
04th Aug 2022 18:09

Is "neither" a permitted answer? (By which I mean, is there a - direct or indirect - tax advantage to calling it either of those things?)

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Replying to Tax Dragon:
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By Ben McLintock
04th Aug 2022 20:04

Both give rise to a benefit in kind, but my understanding is that no output VAT charge is required in respect of staff entertaining?

Although following DavidEx's reasoning, it's quite clearly a gift.

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