- Tax Authority’s Position: The tax authorities maintain that the voluntary provision of lunches to employees serves their personal needs and is unrelated to the employer’s business activities. Consequently, employers are not entitled to deduct input VAT on the purchase of such meals.
- Legal Framework: According to Article 86(1) of the VAT Act, taxpayers can deduct input VAT only if there is a direct or indirect link between the goods and services purchased and the performance of taxable activities. For the deduction to be valid, purchases must contribute to generating taxable turnover, which is not the case for voluntarily provided meals.
- Judicial Confirmation: The Provincial Administrative Court in Wrocław upheld the tax authority’s view, confirming that expenses for catering services provided voluntarily by the employer lack a necessary connection to taxable sales. The court emphasized that the employer’s decision to provide meals is not mandated by labor laws, thus reinforcing the position that such expenses serve the private interests of employees without contributing to the employer’s business activities.
Source TPA
Latest Posts in "Poland"
- MP Calls for 0% VAT on Modern IT Donations to Schools, Not Just Outdated Equipment
- Transactions Exempt from KSeF E-Invoicing in 2026: New Regulation by Ministry of Finance
- Legal Consequences of Receiving Structured Invoices Issued in KSeF Under Article 106gb VAT Act
- KSeF Implementation: Updating Accounting Policies and Internal Procedures for Compliance and Business Continuity
- Faster VAT Refunds with KSeF: Relief for Firms, More Pressure for Accountants
