Corporate gifts are tax deductible as business expenses, but there are conditions attached. In this article we explain the rules and give tips for sustainable corporate gifts that are both commercially and fiscally attractive.
What are corporate gifts?
Corporate gifts are presents given to clients, suppliers, employees or other business partners. They strengthen relationships and increase brand awareness. Sustainable alternatives such as handmade soap and personal care sets are popular as a thoughtful and distinctive gift.
Are corporate gifts tax deductible?
Yes, in principle corporate gifts are deductible as business expenses. However, deductibility is limited to 80% of the costs for sole traders and to commercially justifiable costs for companies. Please note that the rules can vary by situation.
VAT threshold amount
A threshold amount applies to the VAT on corporate gifts. If you keep the costs per recipient per year below €227 excluding VAT, you can fully deduct the VAT on the gifts. If you exceed this amount, the VAT is not deductible.
Tips for fiscally attractive corporate gifts
- Keep costs per recipient per year below €227 excluding VAT.
- Choose useful and representative gifts.
- Keep thorough records of all corporate gifts.
- Choose sustainable gifts that align with your brand values.
Sustainable corporate gifts by Nature Bar
Looking for a distinctive and sustainable corporate gift? Nature Bar offers handmade personal care sets, soap bars and shampoo bars as business gifts. Plastic-free, circular and handmade in Amsterdam. Visit our sustainable corporate gifts page for more information about custom orders and B2B orders.
Disclaimer: this article is intended for informational purposes only and should not be construed as tax advice. Please consult your accountant for your specific situation.
