VAT representation 2012 – when representation is deductible? Representation (both internal and external) deductible under certain conditions. In order to substantiate deduction for expenditure on representation and similar purposes, according 16 Chapter. 2 § Income Tax Act (1999:1229), THE, deduction only it There is an immediate connection with business activities.
In 16 Chapter. 2 § IL also states that the deduction may not exceed what is considered reasonable. Of the practice shows that relief in respect of luxurious representation (cf RAW 1970 ref. 21 and RAW 1983 1:22).
Representation affected if the company is accountable for VAT or not and whether the representation is external or internal.
Deductible representation during income year (fiscal year) 2013 (taxation year 2014):
| External Representation | Momsredovisare | Non Tax Accountants | |||
|---|---|---|---|---|---|
| ( VAT) | (6 % VAT) | (12 % VAT) | (25 % VAT) | Standard | |
| Lunch, noon, supper | 90 kr | 100,80 kr | 112,50 kr | 114 kr | |
| Breakfast | 60 kr | 67,20 kr | 75 kr | ||
| Golf, theaters, etc.(6 % VAT) | 180 kr | 190,80 kr | |||
| Intern representation | |||||
| Lunch, noon, supper | 90 kr | 100,80 kr | 112,50 kr | 114 kr | |
| Breakfast | 60 kr | 67,20 kr | 75 kr | ||
| Rent, entertainment, etc.. at the office party | 180 kr | 225 kr | |||
| Theater, etc.. | 180 kr | 190,80 kr | |||
Moms on the representation
The 1 January 2012 reduced VAT on restaurant- and catering services to 12%. The reduction in VAT does not apply to liquor, wine or beer, still 25% VAT.
Therefore, one must at the recording of a representation meal distribute VAT if it contains both food (12 %) and alcohol (25 %) .
You can either make a lump-sum deduction of VAT with 14 kr. This calculation is based on the principal part of a representation meal (as 75%) should go to the cost of food.
Or they may tax deduction apportioned, and the percentage of alcoholic beverage is calculated from the actual cost of the meal. It is not permissible to previously claim a deduction with 25% the entire deduction under, ie 22,50 kr.
If the alcohol, wine or beer not included in the representation of the meal may deduct only be done with 10,80 kr, ie 12% on 90 kr.
1. Examples of representative deductible (external):
– Representation by PR purposes – anniversary, inauguration of the facility, etc..
– Demonstrations and tours
2. Examples of representative deductible (internal)
– Staff Events and information sessions – however, may not be a question of conviviality and hospitality of a personal nature (cf RAW 1981 Aa 119).
For kringkostnader at the office party, t.ex. rent, expenditure of musical entertainment or behavior, reductions should be allowed a reasonable amount not exceeding 180 kr/180 SEK plus VAT per person.
Deduction for expenditure on office party should not be granted for more than two staff meetings per year. If the employee's family members or retired executives invited to the office party, the reductions granted also for the proportion of expenditure which is attributable to these individuals.
– Board, Audit and Annual General Meeting – a deductible entertainment costs should not count expenses for meals in connection with the Board, revision, general meeting or general meeting. Deductions may be allowed for expenditure on snacks with a maximum 60 kr/60 SEK plus VAT per person.
Examples of luxurious entertainment
– Jaktutflykter
– Fiskeresor
– Specially arranged entertainment
– The keeping of yachts, lantställen, houses and other buildings for entertainment purposes.
Representation in the form of gifts – representations gifts and advertising gifts
Things to consider in connection with the representation
As a rule of 3 Chapter. 5 § layer (2001:1227) on tax returns and verification, LSK, the person who reported income in income from business operations for each business to provide the information needed for tax purposes, such as information about income and expenses. Of Chapter 19. 2 § LSK clear obligation to a reasonable extent by the accounts, notes or other appropriate means, ensure that there is evidence to fulfill the reporting obligation and to control it., the person who reported income in income from business operations for each business to provide the data needed for assessment, t.ex. information about income and expenses. By 19 Chapter. 2 § LSK clear obligation to provide reasonable by accounts, notes or other appropriate means, ensure that there is a basis for fulfilling the obligation and the monitoring of the.
The taxpayer should be through note on restaurant bill or similar receipts showing the representation of expenditure size, able show the relationship between the people involved in the representation and the taxpayer's trade activity. This can be done by the journal noted, including the date of Representation, Name, professional or corporate function for all persons against whom the representation is exercised and the company or companies they represent and the purpose of representation. Data on receipts should be recorded on permanent basis.
In the case of deductions for expenditure on entertainment in the home, the corresponding data recorded for each representative the opportunity. If the deduction claimed for entertainment at home or in the taxpayer's business premises should be an equitable assessment of the size of the deduction on the basis of, the study.
Learn more about representation in the Tax Agency: IN A 2004:5