Although it is still a while before we wolf down the oliebollen, pop the champagne and fireworks, we are also already a little preoccupied with what to do again in January 2016. New for many entrepreneurs is the processing of the WKR, which we already reported on in the article The moment supreme. Not new is the test of whether corrections should be processed in the last VAT return of the previous year pursuant to the VAT Exclusion Decision (BUA).
Such an adjustment is the subject of a recent ruling by the Amsterdam Court of Appeal. This case concerns the VAT paid by a financial service provider on the purchase of simple meals consumed by employees during professional meetings, the purpose of which is to meet requirements for continuing education and keeping up to date in various professional fields. The meals (usually sandwiches with fillings, of between €5 and €10) were purchased from a caterer and consumed in the meeting rooms of the employer's office. To maximise these employees' productivity, these meetings were held during lunch breaks or outside regular office hours. Since the employees were obliged to attend these out-of-hours consultations, the employer had to provide the sandwiches free of charge. Based on a European ruling, the employer argued that the deduction of VAT on the purchase of the meals should not be corrected under the BUA.
However, the court ruled that it was established that the meals resulted in savings for the employees, as they usually incurred expenses for their own lunch. The employer did not establish sufficiently special circumstances requiring the employer to provide the meals. Therefore, the deduction of VAT on the meals is subject to adjustment under the BUA.
We already referred to the WKR above. For wage tax purposes, the meals described above are exempt as they are of a more than incidental business nature (they are consumed during professional meetings). You must therefore keep the processing for payroll tax and VAT apart. If you lose track in doing so, we will gladly point you back in the right direction.