Možnost neodvádět DPH u služeb poskytovaných zaměstnancům zdarma?

In the case of services provided to employees for their private consumption free of charge, the employer is generally obliged to pay VAT at the output (if he asserts the related right to tax deduction).

From the previous case law of the Court of Justice of the EU, there are several exceptions where private consumption is not involved because the "business purpose" of the employer prevails. These are relatively limited cases, for example the transportation of employees to remote workplaces or refreshments necessary for the smooth running of business negotiations.

In the current decision in case C‑607/20, GE Aircraft Engine Services, the Court of Justice of the EU reaches the same conclusion in the case of vouchers (for VAT purposes it was a service) provided to employees as part of a program to reward their extraordinary performance.

However, the conclusions of the CJEU must be approached with caution, as the assessed employee remuneration program was quite specific (the incentive for awarding the remuneration came from another employee). At the same time, the judgment addresses the situation before the introduction of specific rules for so-called multi-purpose vouchers, when there was a threat of double VAT levy (first by the employer and then by the merchant when using the voucher).

In practice, we therefore recommend thoroughly assessing the applicability of the reasoning of the Court of Justice of the EU in specific cases and considering other options for setting up employee benefits in a tax-efficient manner.

If you have any questions, please contact the authors of the article or the EY tax team with whom you regularly work.

Authors:

David Kužela

Jevgenija Bajzíková