Entertainment

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.

• 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 special information meetings.

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.

Other activities that are not taxed as a benefit include:

• 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. A course/conference is considered external even if Lund University is the organiser, provided that the course/conference is also aimed at external participants.
• Working meals, i.e. meals at work meetings/work conferences and meals during overtime work. 

How do I report benefits?

You are to report meal benefits for:

• Lunch/dinner at external courses/conferences
• Lunch/dinner at work meetings, e.g. at board meetings

Other taxable benefits, e.g. taxable 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.
• Compensations/fees; Taxable Benefit 1 – Food allowance

Clarification regarding meals at work meetings

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. If you are given lunch as an employee where the purpose is not internal or external entertainment, a meal benefit arises. A free meal is then a taxable benefit that you must register in Primula.

What is staff welfare benefits?

Simple measures for wellbeing that are not taxed as a benefit.

• They are aimed at the entire staff
• They are of minor value
  Examples:
  • Service agreements for our coffee/water machines
  • Flower bouquets or suchlike up to a maximum value of SEK 500, excluding VAT and delivery charge, from the University e.g. for landmark birthdays or in the event of illness
  • Light refreshments such as coffee and cake, breakfast or a fruit basket