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Newsletter January, 2023

European Court of Justice (CJEU): Decision on corporate welfare and vouchers for employees

On 17 November 2022, the Court of Justice of the European Union ruled on corporate welfare in the case of a UK company that offered vouchers to its employees as part of a programme to reward the most deserving and efficient staff.
According to the European Court of Justice, such provision does not fall within the scope of Article 26 paragraph 1(b) VAT Directive, and those vouchers are not subject to VAT.