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A company has enquired whether it can deduct VAT on canteen menus that it partially funds for its employees. The DGT has ruled that, although the company pays part of the cost, the recipient of the service is the employee, meaning the company acts as the end consumer.
Companies providing subsidised meal services to employees cannot reclaim the VAT on these costs, as the service is deemed to be for the employee's benefit rather than for the company's business purposes.
The tax team reviews your specific situation.
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