Corporate Gifts: Are They Tax Deductible or Not? A Clear Answer

Business gifts in Belgium are, in most cases, 50% tax-deductible, and you can reclaim the VAT as long as the gift stays under 50 euros excl. VAT per recipient per year. The rules are strict — especially when it comes to VAT, promotional items with a logo, and strong spirits.

In this article, makeyour.com explains when business gifts are tax-deductible, which rules apply for VAT and corporate tax, and what to watch out for in your bookkeeping.

Are business gifts tax-deductible? The short answer

Yes, business gifts in Belgium are usually 50% tax-deductible from corporate tax, regardless of the value of the gift. For VAT, the limit is stricter: it is only deductible if the business gift stays under 50 euros excl. VAT per recipient per year.

What are business gifts and representation costs?

Business gifts are gifts to customers, suppliers or business partners to maintain the relationship — think of a bottle of wine or a carefully put-together gift package. For tax purposes, they fall under representation costs. They differ from staff gifts (a different regime) and from promotional material with a logo (separate treatment). For product choices, read more about original business gifts on makeyour.com.

Are business gifts deductible for tax purposes?

Business gifts are 50% tax-deductible for corporate tax, with no statutory maximum amount per gift, as long as it concerns a gift of modest value. For a gift of 50 euros, 25 euros is therefore deductible. Some exceptions, such as promotional items with a clear and permanent company logo, are fully deductible at 100%.

Is VAT on business gifts deductible?

VAT on business gifts is fully deductible as long as the value stays under 50 euros excl. VAT per recipient per year. If you exceed that limit, you lose the entire VAT right on that gift, not just the amount above the threshold. This "all-or-nothing" principle clearly differs from the 50% rule that applies to income tax, and the two rules are often confused with each other.

Promotional items with a logo: when are they 100% deductible?

Gifts on which a company logo is clearly visible and permanently applied often count for tax purposes as promotional material rather than as a classic business gift. The result: promotional material is 100% deductible from corporate tax, instead of the usual 50%. The condition is that the value per item remains modest and that the company logo is not a separate added card but appears directly on the product, for example printed on the label of a bottle.

The distinction therefore lies in the way the logo is applied. A sticker added afterwards does not count as promotional material and falls back under the regular 50% rule. A logo that is a permanent part of the design, for example through printing on the label or packaging, does increase the chance of full deductibility.

Keep the logo subtle for B2B relationships: a discreet, well-crafted design looks more professional as a business gift.

Exceptions: tobacco, strong alcohol and samples

Not every business gift follows the standard 50% rule. For tobacco and strong drink above 22° alcohol, the VAT is never deductible, regardless of the value; the 50% cost deduction in principle still applies — check this with your accountant. Samples of your own product form a favourable exception: these are often fully deductible because they count as a promotional or sales cost, not as a gift.

• Tobacco: the VAT is never deductible, regardless of the value.
• Strong alcohol above 22°: gin, whisky and rum fall under this if you give them purely as a drink gift, such as an apero package with strong drink — the VAT on this is never deductible.
• Combination packages: strong drink together with food such as cookies or chocolate, for example a gift package with bubbles, cookies and chocolate, is often assessed differently than a purely alcoholic gift.
• Samples: samples of your own product are generally fully deductible, as a separate category apart from the classic business gift scheme.

Consumables such as wine and champagne: does a different rule apply?

No, wine and champagne follow exactly the same tax rules as other business gifts: 50% deductible from corporate tax, and the VAT is deductible as long as the value stays under the limit of 50 euros excl. VAT per recipient. There is no separate tax status for drinks as a gift.

The only difference lies in practice: a bottle in an ice bucket requires a waterproof label (as with a personalised champagne magnum), otherwise the print will smudge. And with a business gift wine package or wooden crate with wine and bubbles, the tax authorities assess the total value per recipient, not the number of bottles.

Are gift vouchers tax-deductible?

Gift vouchers as a business gift are tax-deductible according to the same rules as other business gifts: 50% deductible from corporate tax, and the VAT is deductible as long as the value of the voucher stays under the threshold of 50 euros excl. VAT per recipient. A separate, more favourable scheme applies for staff, with its own annual maximum.

How often can you give a business gift per customer?

There is no statutory maximum on the number of business gifts per customer per year. However, the VAT exemption of 50 euros applies as a total amount per recipient per year, not per individual gift. If you give a gift of 30 euros twice to the same customer, you add these together to 60 euros and lose the VAT deduction.

One gift per customer per year — often around the end of the year — is the simplest way to stay under the threshold. If you send something more often, keep track of the annual total per recipient.

You can find more about the options and range at original business gifts.

Business gifts in bookkeeping and abroad

Book a business gift correctly in your tax return by registering it as a representation cost with the correct deduction percentage, and keep the proof of purchase with the recipient's name. If you give the gift to a customer during a business trip abroad, it may sometimes be 100% deductible under the scheme for business travel costs.

1. Put business gifts on a separate account for representation costs.
2. Note the recipient, date and value excl. VAT for each gift, and keep the invoice as proof.
3. Apply the correct percentage: 50% standard, 100% for promotional items with a logo.

Frequently asked questions about business gifts and taxes

Is a business gift tax and VAT deductible?

Yes, a business gift is usually 50% deductible for corporate tax and fully deductible for VAT, as long as the value stays under 50 euros excl. VAT per customer per year. If the value exceeds 50 euros, the VAT right lapses entirely. Promotional material with a logo is 100% tax-deductible.

What is the VAT rate for business gifts?

The standard VAT rate of 21% applies to business gifts. The right to VAT deduction only applies as long as the value stays under the limit of 50 euros excl. VAT per customer per year; above that, you can no longer deduct the VAT.

Is a business gift tax-deductible?

Yes, business gifts are usually 50% tax-deductible as a representation cost. If the gift qualifies as promotional material with a company logo, an exception applies and it is 100% tax-deductible. Above 250 euros, the tax authorities may require a fiche 281.50 — check this with your accountant.

How much VAT on a business gift?

By default, 21% VAT applies to business gifts, and that VAT is deductible as long as you stay under the threshold of 50 euros excl. VAT per recipient per year. The limit applies per recipient per year, across all gifts combined.

Is champagne as a business gift VAT-deductible?

Yes, champagne follows the same tax rules as other business gifts and has no special exception. Do note: for strong drink above 22°, the VAT is not deductible — champagne and wine are well below that.

What counts as a business gift?

A business gift includes any gift to customers, suppliers or business partners to maintain the business relationship, such as drinks, food or care products. The benefit in kind (BIK) generally does not apply here, unlike gifts to your own staff.

How much can you spend on business gifts?

There is no statutory maximum amount you may spend on business gifts. However, if you stay above 50 euros excl. VAT per recipient per year, you lose the right to VAT deduction, and additional tax conditions apply from 250 euros.

Will it be delivered on time?

Yes, at makeyour.com the following applies: if you order before 9:00 am, you'll have your personalised business gift at home the next working day in Belgium and the Netherlands.

What personalisation options are there?

At makeyour.com, you personalise the label of your business gift with a name, date, your own text or a photo.

Looking for the right business gift within these tax limits? Check out our full range of business gifts.