- Hoerbiger Automotive set up an employee canteen due to a lack of nearby dining options.
- The company hired a catering service to deliver meals, partially paid by employees.
- The company voluntarily provided meals to improve work organization and save time.
- The company inquired about VAT deduction rights for catering services.
- KIS Director stated the company cannot deduct VAT as meals serve personal needs, not business.
- WSA confirmed KIS’s stance, noting no legal obligation to provide meals.
- Court found no link between catering expenses and taxable sales.
- TSUE rulings indicate catering expenses are not deductible without a specific business need.
- Practical implications: no legal obligation means no VAT deduction right.
- Organizational improvements do not justify VAT deduction.
- If VAT cannot be deducted, it does not need to be charged when providing benefits.
- Before offering benefits, check legal obligations.
- Lack of VAT deduction increases benefit costs.
- Consider more tax-efficient employee support forms.
- Document actual business needs if they exist.
Source: mddp.pl
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.
