Foreign workers are widely used in certain sectors. If you provide accommodation as an employer or as a temporary employment agency, the VAT on the accommodation costs is in principle not deductible on the basis of the Decree on exclusion from deduction of turnover tax (BUA). In practice, the question arises with some regularity whether special circumstances arise as a result of which VAT on housing costs can still be deducted. This is also apparent from various cases that have been discussed in the case law in 2021 and 2022.
Source Carola van Vilsteren