Business gifts deductible

Business gifts are a way to appreciate your business associates and strengthen the bond with them. But are corporate gifts also tax deductible?

VAT deduction

The VAT on corporate gifts is in principle not deductible. However, there is a threshold amount of €227 (excluding VAT) per relation per year. If the total costs of a corporate gift per relation per year do not exceed €227, then the VAT is fully deductible.

Income tax

The cost of a corporate gift are basically deductible as professional expenses for 50%. This means you can deduct half of the expenses from your profit.

Tips for tax-efficient corporate gifts

To make sure you corporate gifts tax deductible, it is important to follow the following tips:

• Keep the cost per relation per year below €227 (excluding VAT).
• Choose a corporate gift that is business relevant.
• Keep good records of your corporate gifts.

Conclusion

Business gifts are in principle tax-deductible, provided the cost per relationship per year does not exceed €227. Through tips from the tax authorities to follow, you can ensure that your corporate gifts are also fiscally interesting.

Attentives

Attentives® provides a wide range of corporate gifts, from small tokens to great gifts. Attentives also offers some tips on how to find tax-deferred corporate gifts.

Disclaimer: Attentives is not a tax expert and has compiled a summary of tax rules to inform clients of the options in a short post. For tailored advice, always consult your own accountant and/or tax advisor. For more information, visit the source pages of the tax authorities.

Sources

• Tax authorities: Employee benefits, donations and business gifts
• Tax authorities: Threshold amount employee benefits, gifts and corporate gifts