Dear Sir or Madam: Would you please confirm is the company can claim GST credit and tax deductions for non entertainment food, drink or gifts provided to current employees on a working day on business premises versus off the business premises? Many thanks!
Hi @abbyatmel
It's possible. Are these more like refreshments? An employer can claim a business deduction for the cost of food and drink they provide to their employees on site during business hours - as long as it's not classed as entertainment. They can claim a credit for GST they paid.
Can you tell us more about the gifts? This might be a fringe benefit which the employer can claim a deduction for including any FBT they pay.
If you'd like confirmation about your situation have a think about getting tailored advice from us.
Hi @abbyatmel
It's possible. Are these more like refreshments? An employer can claim a business deduction for the cost of food and drink they provide to their employees on site during business hours - as long as it's not classed as entertainment. They can claim a credit for GST they paid.
Can you tell us more about the gifts? This might be a fringe benefit which the employer can claim a deduction for including any FBT they pay.
If you'd like confirmation about your situation have a think about getting tailored advice from us.
Thank you so much for your reply! Yes, these are light refreshments such as coffee and small lunch brought from food court for the staff and definitely not entertainment. Can we also claim GST and tax deductions if we take staff for a light lunch at a cafe?
The gifts are occasional like flowers for staff birthday and usually less than $300 so there is no FBT to pay but can we still claim GST and tax deductions? What if they are Christmas gift cards for the staff? Thanks again for your help!!!
Hi @abbyatmel
This gets a little trickier. If you look at the link I gave about getting tailored advice from us we can look at this more closely and confirm the treatment for each scenario.
Hi AriATO, thank you very much for your reply!
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