Massage chair at company’s expense

Managers of owners of companies very often decide for purchase of massage armchair for employees, clients or to chairman’s office ;). And they usually ask: can be value of massage armchair settled in costs of company? Can there be appraised VAT from received invoice? In most cases the answer is YES.

To settle purchase of massage armchair in terms of business activity it should be properly justified. Information about this are in further part of article.

Definition of costs of revenue

Cost can be expense incurred to gain income for company. Also, this expense can’t be excluded by law from deductibility – massage armchairs aren’t excluded. So to make purchase of massage armchair be a cost of revenue all You need to do is to prove its relation or influence company’s income. Precise argumentation depends on armchair’s final intended use.

Massage armchair, which earns his keep

Let’s start with the most obvious situations when purchase of massage armchair is done for needs of beauty parlour, hair salon, massage parlour etc. In this cases massage armchair is additional service, charged each time it’s used. Everywhere, where massage in massage armchair will be additional service, which generates incomes, expense in its purchase will be cost of revenue.

Purchase of massage armchair for charges

Purchase of massage armchair on the needs of homes for elder or disabled people translates to purpose of leading this kind of activity and its income. Care for the charges, their rehabilitation or enriching their free time is a strong argument to take an expense for massage armchair in costs of company. Many companies “fight” for a client with competition. Differentiating own company can convince a customer to choose your service, so enriching time that client spent, for example waiting for car service, key to hotel room, treatment or visitation may increase company’s competitiveness and incomes.

So purchase of massage armchairs to car service’s waiting rooms, car washes, hotel’s or restaurant’s lobbies, waiting room at doctor’s office etc., can be a cost of revenue.

Purchase of massage armchair for employees

Employer, who want to hire and keep good employee up, except for good earnings, decides to provide facilities of various kinds. They distinguish employer’s offer on labour market and make the best candidates want to work at his company and current workers to stay there. There are medical or sport bundles assigned, rooms of quiet work, relax rooms are created etc. Massage armchairs are perfect for those relax rooms. Employees thanks to taking advantage of regeneration break will be more effective and refreshed, what will have influence work quality and company incomes.

To sum up: enriching job offer and taking care of proper taking advantage of break by current employees may constitute the basis for subsuming in costs of massage armchair purchase.

What about massage armchair purchase tax

Title to deducting VAT invoice from purchases related to business activity is appertained when purchase serves for taxed activities. If subject is active VAT taxpayer and provides services or sells product and pays VAT invoice for it. In this case, purchase of massage armchair on this business activity needs or for employees, takes advantage from eligibility for deduction, because it is indirect cost making taxed activities.

In each case described above it’s important to find relation of massage armchair purchase with future income and technical subsuming it in company costs can take form of leasing, amortization or even one-time rate.

Additionally, we would like to remind you that in order for the invoice for the purchase of goods above PLN 15,000 to be fully counted as tax deductible costs, it must be paid via the payment account.

End of the year is coming and it’s usually the best moment to domesticate free resources and tax optimization. Maybe it’s good time to buy massage armchairs for company and invest in customers’ frame of mind, charges or employees. If You have questions – contact us and we will surely find solution for your company.

All materials placed in this article have informal character and express authors’ opinion. This article isn’t legal advice or opinion.