The High Court has ruled that companies providing staff outsourcing services must charge Value Added Tax (VAT) on the full invoice amount, including salaries and statutory deductions for outsourced workers.

• VAT will now apply to the total cost billed to clients, not just the management fee.
• This ruling impacts the Commissioner of Domestic Taxes versus a Private firm dispute.
• The decision increases costs for client firms and is expected to affect businesses reliant on outsourced staff like security guards and cleaners.