- Updated guidance on VAT cases involving charges for private use
- Danfoss/Astra Zeneca 2009 STC 701 case involved free meals provided to employees and business contacts
- European Court of Justice ruled no private use charge necessary if meals serve a strict business purpose
- Factors considered included lack of meal choice, basic nature of meals, and purpose to facilitate business meetings
- This established the strict business purpose test
- Julius Fillibeck Sohne 1998 STC 513 case involved employer providing transport for employees to construction sites
- Court initially considered applying a private use charge but decided against it due to practical impossibility for employees to reach sites independently
- This led to the necessity test, assessing if private enjoyment of goods or services is essential for making taxable supplies
Source: gov.uk
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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