VAT-taxed performance for housing temporary agency workers via wage deduction per hour worked
- A Lithuanian employment agency providing scaffolding builders to the Netherlands also offers optional temporary accommodation, purchased from third parties, to its workers.
- Workers opting for the accommodation have €3 per hour worked, up to €520 monthly, deducted from their wages as housing costs, a practice the agency argues lacks a direct link to the service for VAT purposes.
- The Court of Appeal disagreed, ruling that the wage deduction constitutes a direct consideration for a VAT-taxed supply of accommodation, citing CJEU precedents, despite the remuneration being tied to hours worked rather than direct accommodation usage.
Source BTW Jurisprudentie
- X, a Lithuanian temporary employment agency, provides accommodation in the Netherlands for its employees working for Dutch clients, charging them a fee of €3 per hour worked, up to €520 monthly, deducted from their salaries.
- X sought VAT refunds on the costs of this accommodation, leading to a dispute over whether providing housing to employees constitutes a taxable supply of services for consideration.
- The Court of Appeal ruled that X’s provision of accommodation is a supply of services for consideration, citing a direct link between the housing and the remuneration paid by employees, thus rejecting X’s refund applications.
Source Taxlive
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