27.02.2024 Flat-rate tax for the use of VIP hospitality lounge for cust ... The Supreme Tax Court ruled that the provision of seats in a VIP hospitality lounge (VIP box) free of charge to business partners and employees constitutes a benefit in kind that may be taxed at a flat rate in accordance with Section 37b of the German Income Tax Act. The benefit in kind was by way of the use of the individual VIP box seat. Expenses relating to empty seats are not to be considered. Categories: Supreme Tax Court casesKeywords: employee benefit, benefit in kind
02.08.2023 No input VAT deduction for staff outing costs 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. Categories: Supreme Tax Court casesKeywords: employee benefit, staff outings
16.04.2014 No input tax deduction on employer’s canteen subsidy The Supreme Tax Court has held that an employer’s subsidy to a commercial caterer charged with running the staff canteen is a taxable supply in respect of a free-of-charge employee benefit. There is therefore no input tax deduction. Categories: Supreme Tax Court casesKeywords: employee benefit, canteen, subsidy
