Deductibility of VAT on catering services financed for employees – DGT consultation

• A company that contracts a catering service for its employees and partially finances the meals for its workers cannot deduct the VAT paid on those services
• The company in question is in the business of selling appliances
• The catering service is provided directly to the employees who choose to use it
• The company pays a portion of the meal price to the service provider and receives a monthly invoice for the financed amount, including VAT
• The company asked about the deductibility of the VAT paid for the catering services
• The tax authority responded that the company, as a non-recipient of the catering services, cannot deduct the VAT paid on those services
• The company is considered a final consumer in this case and cannot deduct any VAT paid on the services provided to its employees.

Source: audiconsultores-etlglobal.com

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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