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Glasses purchase - employer and employee
Along with the transfer of most of the professional sphere to the Internet and thus, the daily use of electronic devices - our eyesight suffers. More and more people who work in front of the computer are reporting the deterioration of their eyesight and other related ailments. So they look for a solution - most often it is the purchase of corrective glasses. Can it be included in tax deductible costs? What is the issue of VAT deduction in the case of glasses for an employee?
EMPLOYEES WITH AN EMPLOYMENT CONTRACT AND CIVIL LAW AGREEMENT
Pursuant to the Labor Code, the employer is obliged to provide his employees with "personal protective equipment against the effects of hazardous and harmful factors in the work environment". As we know, working in front of a computer is one of such harmful factors, and therefore an employee employed under an employment contract has the right to apply for corrective or blue light protection glasses from his employer. The above is also confirmed by the consistent position of the judicature of common courts.
The situation is different when it comes to the employment based on a civil law contract - commission or B2B. Such documents do not assume the existence of an employment relationship - which on the one hand is a plus, because the contractor has more freedom in performing his duties, and on the other hand, results in the lack of numerous privileges present when employing an employment contract, e.g. paid leave. The employer is obliged to finance or subsidize the purchase of corrective or blue light glasses only if there is an employment relationship so people employed under a civil law contract cannot count on it. Of course, the owner of a given company may decide to pay the glasses to an employee employed on a contract or B2B contract but it will only be due to his good will.
Sometimes the client decides to buy corrective glasses for the employee or to finance some of the costs of their purchases. In this case, such a free benefit should be contributed and taxed. In practice, however, no one remembers about it, while the principal gives his contractor money for glasses somewhat informally or includes them in the costs of his own activity.
VAT DEDUCTION FROM THE PURCHASE OF GLASSES FOR AN ENTREPRENEUR
If, as an entrepreneur, you are wondering whether the purchase of corrective or blue light protection glasses used while working on your business may be included in the tax deductible costs - we have bad news. Unfortunately, according to Polish law, such an expense is personal and not business-related and is not included in tax costs. In individual tax interpretations, tax authorities justify this position by the fact that in the event of an entrepreneur having a visual impairment, he would buy these glasses even if he would not run a business. In other words, the use of glasses by the owner does not directly contribute to improving the functioning of his business - it only protects his eyesight.
VAT DEDUCTION FROM THE PURCHASE OF GLASSES FOR THE EMPLOYEE
The situation is similar with providing glasses to the employee. The employer, in a situation where the invoice is taken for the employee and not for the company, will have to cover the entire expense without the possibility of deducting VAT on this purchase. If the invoice is taken for the company, the positions of the tax authorities are different. Until recently, the tax authorities issued individual interpretations in favor of the taxpayer, allowing the deduction of VATU on the purchase of glasses. According to one of the latest tax interpretations, IPPP3 / 443-1068 / 13-4 / MKw, the tax office ruled that the employer has no right to deduct VAT from the purchase of glasses for the employee. For companies interested in deducting VAT from the purchase of glasses, we recommend writing an application for an individual tax interpretation - for this purpose, you can submit an ORD-IN application to the Tax Chamber to which the company belongs. Without a clear interpretation, the employer, by deducting VAT from this purchase, runs the risk of a possible tax audit. In the absence of an individual tax interpretation, the Tax Office may apply for a VAT refund on the purchase, even up to 5 years after the deduction.
SUMMARY
1. An employee employed under an employment contract has the full right to apply for reimbursement or funding for the purchase of corrective or blue light glasses from his employer.
2. The employer has no obligation but the possibility of subsidizing or purchasing glasses for employees working under a civil law or B2B contract.
3. The employer by deducting VAT from the purchased corrective glasses or glasses protecting against blue light for the employee in the event of a tax inspection runs the risk of returning the previously deducted VAT
4. Pursuant to the PIT Act, an entrepreneur in the case of purchasing glasses for himself does not have the right to recognize their purchase in tax costs, nor should he take advantage of the deduction of VAT on this invoice.
We know that Polish tax law regulations are very complicated, which is why, in line with TaxCoach's mission, for new clients we offer free consultations with a tax advisor that will dispel all your doubts.
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