Limitations on VAT deduction for gifts to employees: understanding the tax implications

• Many companies define their corporate policies for rewards or loyalty towards both customers and employees
• It is necessary to evaluate the tax burdens related to the purchase of goods and services given for free
• The right to deduct VAT may not always be allowed for the company
• Purchases of goods given as gifts to employees cannot be classified as representation expenses
• The company cannot benefit from the right to deduct the tax

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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