Employers’ boost over canteen tax

There was good news for employers that provide subsidised meals in staff canteens yesterday, following a ruling from the European Court of Justice.

The court found employers operating subsidised canteens should not have to account for VAT at 13.5% on the subsidy provided.

Accounting firm KPMG said the ruling could cost the Revenue Commissioners up to €20m each year. KPMG tax partner Terry O’Neill said: “this is good news for employers operating subsidised staff canteens and will result in annual savings of in excess of €200,000 for some of the larger employers.”