Morning tea to celebrate opening of new office
A relationship counselling organisation holds a morning tea to celebrate the opening of their new premises. The morning tea is provided on a working day and consists of biscuits, cake, tea, coffee and soft drink. Attendees include employees and invited guests.
Is entertainment being provided?
Providing a morning tea of biscuits, cake, tea, coffee and soft drink is not entertainment.
Does an exemption apply?
Yes an exemption does apply. The food and drink provided to the employees of the relationship counselling organisation is exempt from FBT because it is provided and consumed on a working day on the business premises.
The employer can claim GST credits for the food and drink.
Food and drink provided to invited guests
There is no FBT on benefits provided to the invited guests.
The employer can claim GST credits for the food or drink provided to the invited guests.