Catering Costs Eligible for VAT Refund, Belgian Authorities Concede

The Belgian VAT authorities on March 13 issued a decision1 in which they agreed to follow the Supreme Court case law regarding the deduction of VAT on catering costs.
Under Belgian law, a VAT payer cannot deduct and recover VAT on business entertainment expenses (article 45, section 3 of the VAT Code). However, the distinction between business entertainment expenses and business promotion expenses was a gray area. The difference relates to the distinction in article 17(6) of the Sixth VAT Directive2 between "strictly business expenditure" and "luxuries, amusements, or entertainment."

Catering Costs Eligible for VAT Refund, Authorities Concede, Tax Notes International, 6 April 2015, 32
PDF ``catering-costs-eligible-for-vat-refund-belgian-authorities-concede.pdf