Clubs and companies
Corporate gifts for employees: the tax basics
A gift for employees and a gift for clients are treated differently for tax in most countries. The basics, what to check with your accountant, and what our invoice shows.
Contents
In most countries a gift for an employee and a gift for a client are treated differently for tax. A gift for staff is often seen as a benefit in kind, with a tax-free allowance or exemption that depends on the country. A client gift is a business expense, where the main question is whether you can reclaim the VAT. This article gives the general picture. It is not tax advice: the rules and amounts differ per country, so check your situation with your accountant.
Employees or clients: why it matters
For an employee, a gift is usually part of their remuneration. Many countries have an exemption or an annual allowance for small gifts, sometimes only for specific occasions such as Christmas or an anniversary. Above that, the gift can be taxed as salary. For a client or business partner, the gift is a business cost; the questions there are whether it is deductible for your profit and whether the VAT can be reclaimed.
| Recipient | What it usually is | What to check |
|---|---|---|
| Employee | Benefit in kind | Your country’s exemption or allowance for staff gifts |
| Client or partner | Business expense | VAT deduction limits and deductibility for profit tax |
VAT on business gifts
Many EU countries limit VAT deduction on gifts above a certain value per recipient or per item. The threshold and the rules differ per country, so ask your accountant which limit applies to you before you order larger quantities.
What our invoice shows
You get an invoice in your company name with VAT shown separately. If your company is based in an EU country other than the Netherlands, enter your VAT number: we check it with VIES and apply the reverse charge, so the VAT rules of your own country apply. Prices for 10 to 100 pieces are in what does a padel racket with your company logo cost.
Checklist
- Is the gift for employees, for clients, or both?
- Which exemption or allowance for staff gifts applies in your country?
- Is there a VAT deduction limit per recipient for business gifts?
- Do you have an invoice in your company name with VAT shown separately?
- Has your accountant seen your plan, especially for larger quantities?
Your next step
See the worked examples on padel merchandise for companies, for example the MerchPadel 3K. Only have a logo? The design service makes the design for free. For a price on your quantity, request a quote. For Christmas, read why a padel racket with your logo works as a Christmas gift.
Frequently asked questions
Is a gift for employees taxed?
That depends on the country. Many countries exempt small gifts or have an annual allowance; above that, the gift can count as salary. Check the rules with your accountant.
Can I reclaim VAT on a client gift?
Often yes, within a limit. Many EU countries restrict VAT deduction on gifts above a certain value per recipient. The threshold differs per country.
Do I get an invoice with VAT from MerchPadel?
Yes, in your company name with VAT shown separately. With a valid VAT number from another EU country we apply the reverse charge after checking it with VIES.
Is this tax advice?
No. This is general information. The rules and amounts differ per country, so ask your accountant about your own situation.