France confirms entertainment expenses must be in company’s name

The French Supreme Court has confirmed that French VAT may only be deducted on restaurant entertainment costs if the receipts are in the name of the company.

The case involved staff of a company who paid for restaurant bills, and had the receipt prepared in their name.  The staff were on per diem, daily expense allowances from their employer.  However, the French VAT code does not permit the deduction of VAT if the invoice is not made out to the company.  This was confirmed by the Supreme Court (SARL Laboratories Vitarmonyl).

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