The contractor is at the end of the chain, hence is the one paying the VAT. You’re right that there’re measures to reduce the tax load. At the end of the day,

The contractor is at the end of the chain, hence is the one paying the VAT. You’re right that there’re measures to reduce the tax load. At the end of the day, any company expense will also cut into the profit/ margin of the contractor. There’re various laws in place to tax anything company acquired that can be used personally. Great example is the car and real estate taxation. The largest component of the equation is the pension/retirement finances. This is tricky to get right