Legal Cases on VAT Charges for Employee Benefits: Danfoss/Astra Zeneca and Julius Fillibeck Sohne

Updated guidance on VAT cases involving charges for private use
Danfoss/Astra Zeneca 2009 STC 701 case involved free meals provided to employees and business contacts
European Court of Justice ruled no private use charge necessary if meals serve a strict business purpose
Factors considered included lack of meal choice, basic nature of meals, and purpose to facilitate business meetings
This established the strict business purpose test
Julius Fillibeck Sohne 1998 STC 513 case involved employer providing transport for employees to construction sites
Court initially considered applying a private use charge but decided against it due to practical impossibility for employees to reach sites independently
This led to the necessity test, assessing if private enjoyment of goods or services is essential for making taxable supplies

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.