No VAT Deduction for Housing Foreign Temporary Workers: Supreme Court Upholds Tax Authority’s Correction

• X, a temp agency, provided foreign workers to clients and rented accommodations for them, covering the rent and deducting VAT.
• The tax inspector denied the VAT deduction based on specific legal provisions and issued an additional tax assessment.
• The lower court annulled the assessment, but the Court of Appeal overturned this, ruling X did not prove special circumstances necessitated providing housing.
• X’s arguments and evidence were insufficient; the housing was not primarily due to X’s special needs.
• The Supreme Court dismissed X’s appeal, upholding the correction of the VAT deduction.

Source: nlfiscaal.nl

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.

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