On the basis of the Decree excluding VAT deduction 1968 (hereinafter: ‘the BUA’), the VAT on costs related to the provision of accommodation for staff can be excluded from deduction. However, the exclusion from deduction does not apply if a special circumstance compels the employer to provide these services for his own account, so that the expenditure on those services is made primarily in the interest of the company and the personal benefit of the employees of the subordinate. importance is.
The Supreme Court has recently ruled on this problem in the situation in which an employment agency offers temporary accommodation to foreign temporary workers. If there are special circumstances that force the employment agency to interweave workers abroad, the VAT on the accommodation costs may still be eligible for deduction.
Source Baker Tilly
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