- Gifts are considered as gratuitous benefits that should not be seen as a reward for a specific service from the recipient
- Different VAT consequences depending on the value of the gift
- Physical objects are usually given as gifts, but other services or economic benefits can also be given
- If the recipient provides a service in direct economic or temporal connection to the gift, it is no longer considered a gratuitous benefit but rather a payment for a service
- In such cases, the gift would be subject to VAT as consideration for a service provided by the recipient
- The text provides an overview of the VAT treatment of gifts, specific value thresholds, and necessary bookings.
Source: datenbank.nwb.de
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.
