Providing small occasional gifts to employees is a topic that appears in virtually every company.
As a rule, the tax authorities are of the opinion that when purchasing such goods, a taxpayer should not have the right to deduct input tax due to the lack of connection between such an expense and the performance of taxable activities. A separate issue is the taxation of free transfer of such small gifts.
VAT is subject to payment for the supply of goods and the provision of services.
As a rule, the supply of goods also means the free transfer of goods belonging to his enterprise by the taxpayer, including in particular the transfer or consumption of goods for personal purposes of his employees, including former employees, and any other donations, provided that the taxpayer was entitled to a reduction the amount of tax due by the amount of input tax related to the purchase, import or production of these goods or their component parts.
This means that if a taxpayer has purchased goods that do not in any way affect the amount of his turnover and are not related to taxable activities…
Source Archiwum
