Business gifts: tax and VAT deductible?

If you want to buy a gift for a client, partner, or employee, you can deduct part of the cost in Belgium. However, the deductibility is not always the same.

What counts as a business gift?

Business gifts are presents that self-employed professionals give to clients or business partners to strengthen professional relationships. Common examples include a box of chocolates, a bottle of wine, or VIP tickets to an event (though you must be able to prove it was a business meeting).

If the gift has a clear company logo and is of low value—such as pens, calendars, or notebooks—it is considered promotional material and is fully deductible, including VAT.

But what about the deductibility of regular business gifts?

Business gifts are tax and VAT deductible

Business gifts up to €50

• A client gift is generally 50% deductible from income tax.
• If the total value per client is below €50 (excluding VAT) per calendar year, the VAT is 100% deductible.

Example:
You give a client a bottle of wine worth €40. In this case, the VAT is fully deductible, and 50% of the cost is tax-deductible.

Client gifts between €50 and €250

• A gift costing more than €50 (excluding VAT) but less than €250 (excluding VAT) is also 50% deductible from income tax.
• However, the VAT is not deductible. You may still deduct 50% of the total amount, including VAT, from your personal or corporate taxes.

Example:
You buy a gift basket for €120 (including VAT). You cannot reclaim the VAT, but you can deduct €60 from your personal or corporate income tax.

Business gifts over €250

• Business gifts worth more than €250 are 100% deductible, but there is a significant drawback.
• Gifts valued over €250 are considered a “benefit in kind” (VAA/ATN) for the recipient.

As a result, you must issue a fiscal form 281.50, and the recipient has to declare the gift on their tax return. Not everyone is happy about this.

Example:
You give a client a watch worth €300. You can deduct the full cost, but your client will have to pay taxes on it.

Exceptions to the deductibility of business gifts in Belgium

Foreign Business Gifts

If you give a business gift during a foreign business trip, it is 100% deductible for tax purposes.

It doesn’t matter where the gift was purchased or who the recipient is, as long as you can prove you were on a business trip abroad. 😉

Tobacco and Strong Alcohol (>22°)

The VAT on tobacco products and alcoholic beverages with more than 22% alcohol is never deductible, regardless of the value of the gift. A bottle of champagne or wine is safe, but a bottle of whisky is not.