Field help:
Gifts
Gifts (deductible)
Enter here both the deductible and non-deductible expenses for gifts.
Gifts for business partners
Gifts are generally deductible as business expenses provided that the costs do not exceed 50 Euro per person and year. For entrepreneurs subject to VAT, this amount applies without VAT. For entrepreneurs not entitled to input tax deduction (e.g. small businesses, doctors), VAT is to be included in the exemption limit of 50 Euro.
Exemption limit of 50 Euro
This is an exemption limit, not an allowance. This means that as soon as the expenses for gifts exceed the amount of 50 Euro per person and year, they cannot be deducted as business expenses at all. These non-deductible amounts must also be entered here.
Labelling and packaging costs
- The costs of labelling the gift as an advertisement (e.g. by printing a logo on it) are included when determining the 50-Euro limit.
- Shipping and packaging costs are not taken into account and do not count towards the exemption limit.
Exemptions from the exemption limit
- Business use of the gift: The exemption limit of 50 Euro does not apply if the recipient can only use the gift in his business (according to R 4.10 para. 2 sentence 4 of the Income Tax Regulations (EStR)).
- Gifts to own employees: Business gifts to employees are fully deductible as business expenses and must be entered here.
Documentation obligation
The expenses for gifts must be entered individually and separately from the other business expenses. A separate entry, for example, in a separate account, is required to ensure deductibility.
