Gifts for Customers

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Don´t forget the tax authorities when giving presents

Would you like to give your customers and business partners a gift for Christmas? A good idea, because small gifts are known to maintain friendship.

But the tax office has a say when it comes to tax deductibility.

Attractions of up to € 10 net per customer (so-called giveaways) are uncritical and fully deductible. More valuable gifts of up to € 35,- per year per person are business expenses for the company, but they have to be taxed at the customer’s expense.

You can save your customers this by paying the flat-rate tax of 30% (plus solidarity surcharge and church tax) for your business friends. Keep the payment receipts and label them with the name of the person receiving the gift and the occasion so that the formal requirements are met.

But please note: If your gifts exceed the value of 35 € net, neither the gifts nor the flat-rate tax are deductible as business expenses.

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