In Belgium, you can only reclaim VAT on a business gift if it costs less than € 50 excl. VAT, and for income tax the gift is usually 50% deductible. In the Netherlands, VAT deduction is lost as soon as you spend more than € 227 excl. VAT per recipient per year, and gifts in the form of food and drink are only partly deductible. In Belgium, promotional items with your logo fall under more favorable rules. Below you'll find an overview of the rules per country.
The tax authorities distinguish by who receives the gift and what it is:
Read more about the difference on our help page "What's the difference between promotional items, premiums and business gifts".
| Type of gift | Reclaim VAT | Deductible as business expense |
|---|---|---|
| Promotional item with logo, low value, widely distributed | Yes | 100% |
| Business gift under € 50 excl. VAT | Yes | 50% |
| Business gift of € 50 excl. VAT or more | No | 50% |
| Business gift over € 250 per recipient per year, with form 281.50 | No | 100% |
VAT on gifts is generally not deductible. The exception is gifts of low value: if the gift costs less than € 50 excl. VAT, you can reclaim the VAT. The amount applies per gift, not per order. For tobacco and spirits, VAT is never deductible.
Business gifts are 50% deductible as a business expense. Promotional items are fully deductible, provided they carry your name or logo clearly and permanently, have a low value, and are widely distributed. Food and drink, such as wine or chocolate, do not count as promotional items, even with a logo. If you give a customer a gift worth more than € 250 per year and issue a form 281.50 for it, the gift is fully deductible but taxed in the hands of the recipient.
| Topic | Rule in 2026 |
|---|---|
| VAT deduction on business gifts | No deduction if you spend more than € 227 excl. VAT per recipient per year (Besluit uitsluiting aftrek omzetbelasting/Decree on the Exclusion of VAT Deduction) |
| Gifts to businesses with full VAT deduction | The € 227 threshold usually doesn't apply |
| Food, drink, and luxury goods (income tax) | Partly deductible: threshold of € 5,700, or deduct 80% of the costs |
| Food, drink, and luxury goods (corporate income tax) | 73.5% of the costs deductible |
| Gifts to employees | Via the werkkostenregeling (Work-related costs scheme): free allowance of 1.7% of the first € 400,000 of the payroll and 1.18% above that |
Business gifts fall under the Besluit uitsluiting aftrek omzetbelasting (BUA). If you give one recipient more than € 227 excl. VAT in gifts in a year, you may not deduct VAT on those gifts. Below that amount, you may. If the recipient is a business that could fully deduct the VAT itself, the threshold usually doesn't apply.
Business gifts are generally deductible from profit. A restriction applies to food, drink, and luxury goods, such as a Christmas basket or wine. For income tax, a threshold of € 5,700 applies in 2026, or you deduct 80% of those costs. For corporate income tax, the figure is 73.5%.
A Christmas hamper or end-of-year gift for employees falls under the werkkostenregeling. In 2026, the free allowance is 1.7% of the first € 400,000 of the payroll and 1.18% of the excess. If you stay within that allowance, you pay no payroll tax. Above it, you pay an 80% final levy on the excess.
Find inspiration in our end-of-year gifts with your logo, and for something you won't find anywhere else, take a look at our custom made products.
Yes, 50% as a business expense. Promotional items with a logo, low value, and wide distribution are fully deductible.
Only if the gift costs less than € 50 excl. VAT. For tobacco and spirits, VAT is never deductible.
€ 227 excl. VAT per recipient per year. If you spend more, you may not deduct VAT on those gifts.
Partly. Food and drink are limited-deductible costs: in 2026, a threshold of € 5,700 applies for income tax, or you deduct 80%.
Yes, if it carries your logo or name permanently, has a low value, and is widely distributed.
This article provides general information and is not tax advice. If you're unsure about your situation, check with your accountant.
