Deduct business gifts
Easiness to justifyAverage amount deducted€ 250 per yearFrequency5-10x per year
Business gifts are gifts that you give to your customers or partners to strengthen or develop your professional activity.
Typical business gifts include boxes of pralines (the perfect gift for a foreign client or partner – enjoy the good things Belgium has to offer 🇧🇪), one or more bottles of wine or other small gifts you think will make your client smile.
Ideally, the business gift will have something to do with your business: if you want to deduct the cost of tickets to your last quarter-final at Roland-Garros, be prepared to show that you actually invited a customer (not your partner) and discuss the impact of this meeting on your income 🎾.
The VAT deductibility depends on the price of the gift
First rule: gifts are 50% deductible for your income tax. This is the case in every situation, even when the VAT is not deductible.
On the other hand, the VAT deductibility depends on the amount:
- the VAT is 100% deductible if the price of the gift is less than €50 (excluding VAT) per customer, per calendar year.
- If you do not meet all these conditions, the VAT is not deductible.
VAT on tobacco and spirits (alcohol percentage higher than 22 °) is never deductible (see here for more details)