Deductibility of a Company’s Expenses Related to Contractors for Income Tax and VAT Purposes

Petr Varga’s Training Session
Video recording from the webinar on the 27th. 7. 2026

Topic: Deductibility of a Company’s Expenses Related to Contractors for Income Tax and VAT Purposes
Format: Webinar
Speaker: Peter Varga (Highgate Group)

Peter Varga, founder and partner at Highgate Law & Tax—the Law Firm of the Year in the areas of tax law and capital markets—will guide you through the following topics in a practical manner during the webinar:

✓ When is it acceptable for a company to provide assets or services (such as a car, laptop, or lodging) to a contractor, and when is there a risk that the VAT deduction will not be recognized or that the company will be required to pay VAT?

✓ How do these situations play out from an income tax perspective, and what should you watch out for?

✓ How VAT and income tax differ depending on the chosen contractual model.

✓ The difference between a lease, a loan, and a “mandate”—and which one to choose.

✓ Recent case law from the Court of Justice of the European Union that changes the perspective on these situations.

WEBINAR CONTENT – Questions

PROVISION OF PROPERTY TO THE CONTRACTOR

• Can I provide a contractor with a car or a laptop, or cover their lodging expenses?
• When am I at risk of being classified as a “Schwarz” system?
• What is the difference between a lease, a loan, and a “mandate”?

VAT

• When does a “supply” occur, and do I have to charge output VAT?
• Am I entitled to a VAT deduction when purchasing assets for a contractor?
• How does the current case law of the Court of Justice of the European Union view this?

INCOME TAX

• Is the cost of property for a contractor a recognized tax deduction?
• Which contractual model is the safest from an income tax perspective?
• How do you choose the right model for a specific situation?