The Supreme Tax Court held that the input tax on staff outing costs (Christmas get-together) ranking as an employee benefit cannot be deducted. If the employer receives services for so-called staff events, he is only entitled to deduct the input VAT on the underlying costs if the services do not exclusively serve the private needs of the employees of the company but are caused by the special circumstances of the employers’ business activity.
The Supreme Tax Court has confirmed the tax-free limit of €110 for the benefit in kind from participation in staff outings and parties, but has reduced the cost items to be taken into account and has also taken the costs attributable to accompanying persons out of the calculation.
