A customer gift is generally 50 per cent tax-deductible. If the total value per customer is less than €50 (excluding VAT) per calendar year, the VAT will be 100 per cent deductible.
Example: You give a customer a bottle of wine worth €40. In this case, the VAT is fully deductible and 50 per cent of the value of the gift will be tax-deductible.
A gift worth more than €50 (excluding VAT) but less than €250 (excluding VAT) is also tax-deductible at 50 %. However, in this case, the VAT is not deductible. (You can, however, deduct 50 % from the total amount, including VAT).
Example: You buy a gift hamper for €120 (including VAT). You cannot reclaim the VAT, but you can claim a tax deduction of €60 against your personal income tax or corporation tax.
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