Can I Claim Client Entertainment as a Business Expense in Ireland?
No, entertainment of clients (meals, drinks, hospitality) is specifically disallowed for Irish Corporation Tax under Section 840 TCA 1997, even if business is discussed.
Finn does your books in Ireland
AccountsOS keeps the books for Ireland businesses, tracks tax deadlines and handles expenses, in plain English. Ask Finn about yours, no signup needed.
What Revenue (Revenue Commissioners) says
Section 840 of the Taxes Consolidation Act 1997 disallows business entertainment of clients, customers and suppliers. The cost is not deductible in computing trading profits. VAT is also not recoverable on entertainment expenditure. The disallowance in section 840 covers the cost of providing food, drink, accommodation, entertainment or gifts to clients, customers or suppliers, and the incidental costs of providing them. The wider TCA rules also treat this as an add-back in the corporation tax computation, so the Form CT1 profit is higher than the accounts profit by the entertainment total.
When you can claim
- Staff entertainment (annual party, team meals) up to a reasonable amount per employee
- Trade show or conference attendance fees
- Promotional gifts under €20 (excluding food, drink, tobacco)
- Marketing events that are open to the public and advertise the business, where no hospitality is given to named clients
- Meals for staff on a business trip, treated as subsistence rather than client entertainment
When you cannot claim
- Client lunches and dinners
- Tickets for sport or theatre with clients
- Drinks with prospects
- Any food or alcohol provided to non-staff
- VAT on entertainment expenses
- Hotel, restaurant or travel costs for a client that the company pays on the client's behalf
- Entertainment of overseas customers or suppliers, which is caught in the same way as Irish ones
Good to know
Pro tip: Code client meals to a separate entertainment account from day one, so the add-back in the corporation tax computation is a single figure. Also remember the VAT block on the same cost, so do not reclaim the VAT on the receipt.
Important: Even if business is genuinely discussed, the cost is still disallowed. The only exception is a clear staff event: your own employees count, but not contractors or clients. Gifts to clients are caught as well as meals. A branded item of low value that carries a conspicuous advertisement for the business is treated differently from a hamper or a bottle of wine, so keep a note of what was given and why.
Stop guessing what you can claim in Ireland
AccountsOS automatically categorises expenses with Revenue (Revenue Commissioners)-aware rules and tells you exactly what is claimable.
Try Free