Are corporate gifts tax-deductible?

sustainable-corporate-gifts custom

Corporate gifts are an important part of business relationship management. They can be used to strengthen relationships, increase brand awareness, and attract new customers. But are corporate gifts also tax-deductible?

What are corporate gifts?

First let’s cover the basics first, corporate gifts are gifts given to business relationships, such as customers, suppliers, employees, and other business partners. They are intended to strengthen the relationship and increase brand awareness. Corporate gifts can take many forms, such as:

Want to strengthen your relationships? Go a step further with our sustainable corporate gifts.

Company-gifts

Corporate gifts tax-deductible

In principle, corporate gifts are tax-deductible as business expenses. This means that you can deduct the cost of them from your income tax. However, the deduction is limited to 50%.

VAT threshold

There is a threshold for VAT paid on corporate gifts. If you limit the cost of corporate gifts per recipient per year to € 227 (excluding VAT), then you can fully deduct the VAT on the gifts.

Tips for tax-friendly corporate gifts

If you want your corporate gifts to be tax-deductible, it is important to keep the following tips in mind:

  • Limit the cost per recipient per year to € 227 (excluding VAT).
  • Choose gifts that are useful and representative.
  • Keep a record of the costs of corporate gifts.

Conclusion

Corporate gifts are an investment in your company. They can help to strengthen relationships, increase brand awareness, and attract new customers. However, there are a number of conditions attached to the tax deductibility of corporate gifts. Limit the cost per recipient per year to € 227 (excluding VAT) and choose gifts that are useful and representative. With good record keeping, you can demonstrate the deduction of business gifts to the tax authorities.

Are you in need of corporate gifting services? We’d love to help you! Check out our full-service corporate gifting options here. 

Disclaimer: This article is meant for informational purposes only and should not be taken as, business, legal, or tax advice. Please consult with your accountant or bookkeeper for more information based on your specific situation.

For more information, please read through the following Belastingdienst information.

Related articles

Discover simple tips to extend the life of your artisanal soap and shampoo bars and enjoy them for longer
Did you know that this oil is found in an incredible amount of foods these days? The tropical rainforest is being cut down all over the world at a rapid pace. Large international companies are building huge palm oil plantations. Together we can stop this!
If you’re new to shampoo bars, then you might be wondering how to use a shampoo bar. In this article, we’ll give you a step-by-step guide on how to use a shampoo bar, as well as some tips on how to get the most out of your new haircare product.
Shopping Cart