VAT Deduction in Canteen Use Contracts: Business Interest vs. Gratuitous Value Transfer

• Companies provide canteens for employees to promote healthy meals and improve workplace atmosphere.
• The FG München addressed the issue of input tax deduction related to canteen use by temporary workers.
• The case involved whether fees paid by a lending company for discounted canteen use by its employees qualify for input tax deduction.
• An exchange of services occurs when a company allows another company’s employees to use its canteen under the same favorable conditions as its own employees.

Source: datenbank.nwb.de

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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