The Zeeland-West-Brabant District Court has ruled that X bv can deduct the VAT for the rent of accommodation for foreign temporary workers. It is plausible that renting the accommodations is primarily prompted by the special needs of the company of X bv.
X bv operates an employment agency in the installation, construction, metal and painting industry and makes foreign temporary workers available to its clients. X also provides accommodation for these foreign employees. X bv deducts the VAT invoiced by the holiday parks and B&Bs. However, the inspector is of the opinion that this VAT on the basis of art. 1 paragraph 1 under c BUA does not qualify for deduction.
The Zeeland-West-Brabant District Court has ruled that X bv can deduct the VAT for the rent of accommodation for foreign temporary workers. The court refers in this regard to the judgment of the Supreme Court of 13 November 2020, no. 18/04901 ( UN 2020/60.20 ). According to the court it is plausible that renting the accommodations for the foreign workers is primarily prompted by the special needs of the company of X bv. The court considers it important that X bv bears the costs of the rent itself. The provision of the accommodations is based on the special need to (be able to) attract foreign workers. The court annuls the additional assessment.
Source
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