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A query was raised regarding whether VAT should be included when valuing benefits in kind for the use of housing not owned by the company. The DGT ruled that the cost to the payer includes any taxes levied on the transaction, regardless of whether they are deductible.
This ruling clarifies that the valuation of housing benefits in kind must account for the total cost incurred by the employer, including VAT, which increases the taxable amount of the benefit for the employee.
The tax team reviews your specific situation.
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