VAT deduction on glasses for the employee

Service-Tax

According to the current health and safety regulations, if the employee spends at least half of the daily working time at the computer - the employer is obliged to buy glasses for him. This is a very win-win situation for the worker himself, given the prices of the frames and lenses. However, is it possible for the employer to deduct VAT on glasses for the employee?

Who is the glasses for?

Of course, the employer is not obliged to equip the entire office with corrective glasses. According to the interpretation of the Director of the Tax Chamber in Warsaw of February 17, 2014 with the reference number IPPP3 / 443-1068 / 13-4 / MKw, the employer must provide glasses to the employee who receives such a recommendation from a doctor - ophthalmologist. Of course, such a recommendation must be confirmed by appropriate tests.

Deduction of VAT on glasses for an employee - to deduct or not?

Whether the employer can deduct VAT on the purchase of glasses for the employee is a moot point. Until recently, the tax authorities were in favor of deducting VAT on general terms, if the invoice was issued to the entrepreneur who financed the entire purchase (which is his obligation). However, if the invoice was issued to the employee himself, the employer, unfortunately, did not have the right to deduct VAT from this transaction. Such a theory was supported by the Directors of Tax Chambers, for example, in Poznań (ILPP2 / 443-1016 / 12-3 / MN) and Łódź (IPPP3 / 443-1167 / 12-4 / IG).

However, the tax office changed its position in relation to this matter. Thus, the most recent interpretation is that the employer has no right to deduct VAT on the purchase of glasses for the employee, even if the invoice is issued to the company. This is due to the simple fact - the glasses will not be used by an entrepreneur, but an employee. This is stated in the above-mentioned interpretation (IPPP3 / 443-1068 / 13-4 / MKw).

Individual interpretation and VAT deduction on glasses for employees

Of course, the employer who has doubts as to the correctness of the settlement has the full right to request an individual interpretation in this matter. Such a request is submitted to the tax chamber to which the company belongs. The entrepreneur completes the ORD-IN application, paying the appropriate fee. Unfortunately, you can wait up to several weeks for a decision. Only with a clear interpretation does the entrepreneur have the right to deduct VAT for the purchase of glasses. Otherwise, if the taxpayer deducts VAT from purchases without an interpretation issued, it must take into account that the tax office may claim a refund of the deducted tax even up to 5 years after this event.