Do you have a custom of giving a customer gift every year? Do you give away door gifts or a gift like a branded ball pen? It is then a very thoughtful gesture that proves that you are concerned about the customer relationship. However, to do so, do not be too generous because it could cost you a lot. The tax on corporate gifts is indeed an important detail to remember. Thus, here are some topics that may interest you in this regard so that you have points of reference when you choose the gift to offer.
The Profit Tax and the Customer Gift:
If we refer to industrial and commercial profits or business tax, a customer gift is entitled to a tax deduction on two conditions: it must be purchased as part of a business need and its value must not exceed a certain value. But these conditions are applied according to the specificities of your company, especially its size, its field of activity, etc.
In addition, if you allocate more than 3,000 euros per year in gifts for your employees and customers, you must put it on your statement of overhead costs 2067 that you must provide when declaring your annual result. If, on the other hand, your company is an individual company, the corporate gifts must be entered in the 2031 tar annex of the declaration of result.
VAT On the Customer Gift:
If you are considering a gift worth 69 dollars TTC every year and for each beneficiary, whether the purchase price or the cost price, you do not have to regularize your situation with respect to the VAT applicable.
On the other hand, if the value of the customer gift is greater than 69 dollars, you must make regularization. You have two cases that come to you:
- If your company bought the gifts from a company specializing in corporate gifts, you must pay the VAT that will be deducted.
- If your company has preferred to design the gifts in question, you must have them delivered yourself. This allows you to play on a fictitious tax mechanism that assumes that you sell yourself these gifts, and that in this sense, you must collect the VAT that is applied to it.
However, you do not have to pay VAT if the one on the purchase price or the manufacturing costs were not recovered during the acquisition / manufacture.
In addition, it is important to know that the VAT payment is only to be made if the customer gift is a good. But, if it is for services, such as an invitation for example, it is completely exempt from VAT and you do not have any regularization to do.