The end of year holidays are approaching and you want to offer gifts to your customers or partners? Know that there are specific rules to follow.
In which case to offer a business gift?
You can offer a gift to a customer, a partner or a supplier and consider it a deductible expense if it is in the interest of your business: loyalty gift, thank you for good business relations with a partner or a supplier, etc.
Offering a business gift to a public official or elected official to promote his or her file during a public contract is strictly prohibited. Sticking to the door gift items happens to be the best.
Can you recover VAT on your business gifts?
The answer is yes, if the total amount of the gift (s), with the additional costs, does not exceed 69 € TTC per year and per beneficiary. Before that date, the maximum amount was $ 65. By ancillary costs we mean packing costs, shipping costs, etc.
The case of samples
You can deduct VAT on samples or specimens that you give to customers free of charge, regardless of their value, if you are careful to report them as samples or have them marked “Specimen”.
If you offer a business gift as part of the signing of a contract, free of charge or at a price much lower than the market price, you will not be able to recover the VAT. This rule concerns the goods but not the services if they are in the interest of the enterprise.
And for events?
If you invite guests or partners to a restaurant, a show, etc. to thank them, this is not a business gift per se. We will speak here of reception fees and you can then recover the VAT.
If you invite your customers or partners to an end-of-year event, you will be able to recover the VAT on the expenses incurred for the organization of the event, keeping all the traces of the organization and having a sign of presence to participants. The goal? Allow the tax administration to verify that you have organized this event in the interest of the company. Perfection comes easy now with the custom shoe pouch now.
Do business gifts constitute a deductible charge?
You can deduct these expenses from corporation tax, if you can prove that the gifts were offered in the interest of your business and without consideration. If the business gift does not exceed the planned amount of 69 $ including VAT per year and per beneficiary, all additional costs included, no declaration is to be made.