All expenses > Deduct business gifts: the case of tobacco and spirits

Deduct business gifts: the case of tobacco and spirits

Tax audit risk

Easiness to justify
Average amount deducted€ 150-200 per yearFrequency3-5x per year
Deducted by42% of independentsRecommended by0% of independentsDo you deduct this expense?Would you recommend this expense?

Business gifts in the form of spirits or tobacco are 50% tax deductible.

Like all business gifts, this type of gift is 50% deductible from your professional income as an independent. So there are no different rules for liquors or tobacco.

However, VAT will not be deductible on tobacco and spirits, with 4 exceptions.

The rule for VAT is different: VAT is never deductible on alcohol and tobacco, even if the value of the gift remains under €50, excluding VAT, per year and per client, as it is the case for other business gifts.

There is one exception though: alcohol and tobacco are deductible in case they will be resold, provided as part of a service delivery (e.g. meal to take in or away), or given away to clients or prospects as sampling or tasting. Only professionals in these industries or in HoReCa may therefore be concerned.

In Accountable, you will find business gifts in the Marketing > Business Gifts category. Just make sure you don’t tick the “invoice” box to avoid deducting VAT.


💡Wine, portos, champagnes do not belong to the category of liquors and spirits: their alcohol content remains under 22°.
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