- The issue of tax management for Christmas gifts arises annually during the holiday season.
- VAT treatment of free gifts requires distinguishing between gifts related to the business’s core activities and those that are not.
- Free gifts of goods produced or sold by the business are treated similarly to sales and are generally subject to VAT if the input tax was deductible.
- Free gifts of goods not related to the business’s core activities are exempt from VAT, according to specific legal provisions.
- Exemptions apply to free gifts with a unit cost not exceeding 50 euros and to goods for which no input tax deduction was claimed at the time of purchase or import.
- The law specifies that VAT on representation expenses is not deductible, except for those related to goods costing no more than 50 euros.
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.
