Collective Workers’ Quarters – Why Should You Consider Them?
Currently, accepting an offer of employment in another country strongly depends on providing a physical worker with suitable accommodation. Searching for the right places on your own can be time-consuming. That is why an employment agency with accommodation is an increasingly popular option. Of course, providing accommodation alone is often not enough, and location is also becoming increasingly important - the closer to the place where you perform your professional duties, the better. Conditions and costs are also important. In the latter case, companies that offer free accommodation or, if the prices are relatively low, win most often.
A physical worker with accommodation who has the right conditions (including a convenient location of the accommodation) will be much more efficient in performing professional duties, because, among other things, they will save time needed for commuting. What's more, providing accommodation reduces turnover in the company. In order to save time finding the right accommodation, it is worth entrusting this task to an experienced employment agency.
Accommodation and VAT deduction
Providing accommodation for workers from abroad allows you to avoid many costs, including travel arrangements. Nevertheless, many entrepreneurs who employ people for physical tasks and (not only) wonder whether it is possible to deduct VAT. As a rule, accommodation services are not subject to the possibility of deducting VAT.
However, the law is not clear on the issue discussed in our article. In a situation where free accommodation is used, VAT deduction may be possible. For this purpose, it is a good idea to submit an application for an individual tax interpretation.
Employee accommodation and VAT deduction is possible, to be certain about your situation, it is worth contacting, among others, the National Revenue Information (KIS), for the above-mentioned application, thanks to which you can obtain information about the specific situation and see if there is a possibility of deducting VAT. Of course, this issue can also be consulted with the employment agency you are cooperating with.
Costs of renting staff accommodation - possible solutions
Depending on the capabilities of a given company and the adopted strategy, rental of accommodation, including at an employment agency, can be divided into 3 types of accommodation for manual workers:
- free of charge (enabling VAT deduction in some cases) - all costs are covered by the entrepreneur, the temporary employee does not participate in the rental cost,
- partially paid - the company pays part of the price of renting the accommodation, in an individually determined proportion, the remaining part is covered by the employee,
- paid - currently the least common practice, in which case the entire cost is covered by the person employed by the company.
- free of charge (enabling VAT deduction in some cases) - all costs are covered by the entrepreneur, the temporary employee does not participate in the rental cost,
- partially paid - the company pays part of the price of renting the accommodation, in an individually determined proportion, the remaining part is covered by the employee,
- paid - currently the least common practice, in which case the entire cost is covered by the person employed by the company.
Why is it worth choosing to cooperate with an employment agency?
Accommodation for people performing physical work with the help of an experienced agency is a very beneficial option. A professional employment agency, apart from finding the right place, will also take care of other formalities, including those related to employment, legalization of stay, and will also help with issues such as the possibility of deducting VAT. When planning to employ people performing physical work from abroad, it is definitely worth entrusting this matter to an experienced agency such as FOLGA. Thanks to this, you will gain certainty that all formalities are "buttoned up".
As part of our activities, we also offer the possibility of renting employee accommodation. We will find the perfect accommodation! We cordially invite you to contact us - we will present an individual offer and answer any questions regarding our services.
