Corporate gifts
Business gifts and taxation: what you need to know about deductibility
Business gifts are subject to a precise tax framework. Three main rules apply.
€73 incl. VAT threshold
A gift given in the direct interest of the company is deductible from taxable income up to €73 incl. VAT per recipient and per financial year. This threshold was raised to €73 by the Finance Act (previously €69). Check the amount in force at the date of the relevant financial year.
Recoverable VAT
VAT on business gifts is recoverable only if the unit value incl. VAT does not exceed €73. Above this threshold, VAT is non-deductible, even if the expense remains recorded in the accounts.
Supporting documents to retain
Detailed supplier invoice stating the nature of the gift, a named list of recipients when the total amount exceeds €3,000 per year, and consistency with the company's business activity.
Specific case of wine and Champagne
Wine and Champagne follow the same rules as any other business gift. There is no specific regime. The supplier must be able to issue a named invoice.
Difference with gifts to employees
Gifts to employees (year-end, events) fall under a separate regime (URSSAF gift vouchers, 2025 threshold set at 5% of the monthly Social Security ceiling per employee and per event).
Frequently asked questions
- Is a gift to a prospect tax-deductible?
- Yes, if it is given in the direct interest of the company and documented (commercial visit, trade show, ongoing closing).
- Is the deduction capped overall?
- No, only the unit threshold of €73 per recipient and per year applies. The total amount depends on the number of recipients.
- Must gifts exceeding €3,000 per year be declared?
- Yes, on the general expenses statement (form 2067) attached to the tax return.