If a company takes the purchase of protective clothing and workwear for its staff into its own hands, it gains twice over. On the one hand, they can ensure that their employees are equipped with a professional outfit that suits the company. On the other hand, they can claim the expenses for the purchase and ongoing care and maintenance as tax-reducing business expenses. The same applies if they outsource some or all of these tasks to a textile service provider.

Not every item of clothing is recognized by the tax authorities

The decisive requirement is that it must be classic workwear. For the tax office, these are items of clothing that visibly express the professional nature of the clothing. This includes, for example, particularly hard-wearing trousers for plumbers or a chef's jacket for chefs. In the service sector, the protective function of workwear is less important, but the external effect is. Uniform costumes and suits as well as blouses and shirts with company logos are also recognized by the tax office as business expenses if their private use is virtually excluded.

In the borderline area are higher-quality items of clothing in the business segment or those that do not have a company emblem and therefore theoretically also fit into the everyday wardrobe. In this case, the wearer should consult their tax advisor or the tax office.

Typical workwear is tax-free for employees

For employees, the provision of clothing recognized by the tax authorities does not constitute a non-cash benefit and therefore does not have to be taxed. It does not matter whether the textile equipment is only loaned to the employees or whether it becomes their property. If employees take care of the tax-recognized workwear themselves, they can deduct the running costs for this from their taxes - just as the employer can otherwise.

If an employer decides to rent tax-recognized workwear for their business, this has no impact on VAT. Prerequisite: The clothing is provided to the employees free of charge. However, if the boss withholds a certain amount from his employees' wages as a "clothing allowance" to cover all or part of his leasing expenses, this amount constitutes income subject to VAT for the employer.

Karl-Heinz Feilen and Horst Hübler, contact persons for trade associations and professional organizations at Mewa / am