This page contains information about what entertainment is and what applies concerning taxation of benefits and VAT.
Quick reference guide to entertainment etc.
Recommended expenses, VAT deduction, applicable tax on benefits and account coding instructions for a number of events:
The Kompetensportalen has information on an internal course on entertainment: “Representation i praktiken” (“Entertainment in practice”). The course is offered in Swedish.
Clarification regarding VAT deductions and working meals
VAT deductions are not allowed for internal and external entertainment. The whole amount, including VAT, is to be coded as a cost.
Meals are normally considered a private living expense, but there are exceptions in certain circumstances, such as internal or external entertainment. If you are given lunch as an employee where the purpose is not internal or external entertainment, it is classified as a meal benefit. Free food is a taxable benefit that you are to register in Primula.
In order to ensure that both the Swedish Tax Agency’s rules and the University’s policy on entertaining are followed, an information box will appear when you code to one of the following accounts:
- 49600 Internal entertainment
- 55200 External entertainment
- 57323 Meal, work meeting
- 57324 Light refreshments student event
Things to consider regarding staff welfare
- Service agreements for our coffee/water machines are to be account coded as staff welfare.
- Birthday presents for colleagues are a private collection. Flower bouquets and suchlike for SEK 300 excl. VAT and delivery charge are permitted from the University.
- Light refreshments such as coffee and cake, breakfast or a fruit basket are to be coded as staff welfare.
What is entertainment?
Entertainment is a collective term for activities conducted to promote the University that involve food, drink, gifts and suchlike. Good judgement is to be applied to all entertainment, which is to have a direct connection with the University’s activities. Entertainment is not to be taxed as a benefit.
- External entertainment is aimed at external parties and is intended to initiate or develop cooperation that is important for the organisation.
- Internal entertainment is aimed at the University’s staff and refers mainly to staff parties and information meetings.
- From a benefits perspective, other things that may be considered as entertainment are meals at internal courses and conferences, light refreshments at internal meetings and gifts to staff.
Benefits and VAT
Entertainment is never to be taxed as a benefit, but there are various types of entertainment that are to be handled in different ways. There are specific accounts for official entertainment:
- External entertainment in the form of meals and gifts (account 55200)
- Internal entertainment in the form of staff parties and information meetings (account 49600)
Note: In these two cases there is no VAT deduction, i.e. the VAT amount is not to remain on the VAT line – it is to be combined with the expenses line in Lupin.
Other activities that are also not taxed as a benefit includes:
- Meals at internal courses and planning conferences
- Light refreshments at internal meetings
- Gifts to staff
What is not categorised as entertainment is to be taxed as a benefit in Primula. This includes:
- Meals at external courses or conferences
- Working meals, i.e. meals at work meetings/work conferences and meals during overtime work. Note: There is no VAT deduction, which means that the VAT amount is not to remain on the VAT line – it is to be combined with the expenses line in Lupin.
Examples of entertainment etc.
- Examples of entertainment etc.
- Quick reference guide to entertainment etc (PDF 55 kB, new tab)
- Quick reference guide to entertainment etc. with filtering options (XLS 55 kB, new tab)
How do I report benefits?
You are to report meal benefits for:
- Lunch/dinner at external courses/conferences
- Working meals, e.g. meals at committee meetings
Other taxable benefits, e.g. gifts, are reported by the giver.
In Primula there are forms under “My page”:
- Travel/expenses: You report food in connection with business travel by clicking the appropriate box under the button Meals.
- Reimbursements/fees, Benefit value (food, other): other cases