Can a Temporary Employment Agency Deduct All VAT on Employee Research, Transport, and Accommodation?

• The Supreme Administrative Court addressed whether a temporary employment agency can deduct VAT on expenses for employee medical exams, transport, and accommodation.
• These expenses are necessary for the agency’s VAT-taxed business activities and are considered part of its overall service.
• The agency argued it should be able to deduct all input VAT, even if some services are free (like accommodation) or VAT-exempt (like medical exams), as they support its main taxable services.
• The agency claimed that without providing these services, it could not fulfill its contracts with clients.

Source: podatki.gazetaprawna.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.

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