Definition

Business gift / relationship gift

Gift to an external relation (client, partner, supplier). In the Netherlands BUA and a deduction limit apply; figures vary widely per country.

Business gifts fall outside the Dutch WKR because the recipient is not an employee. In the Netherlands a deduction limit applies to the giver, plus a BUA cap of €227 per recipient per year for VAT deduction.

In Germany business gifts are deductible only up to €35 per recipient per year (§ 4 (5) EStG); above that the deduction is lost. The US caps deductibility at USD 25 per recipient per year.

For international campaigns: document amount and jurisdiction per recipient. Our tax checker gives a first indication.

Use case
client gifting
Related term
Werkkostenregeling (WKR)
Related term
BUA (Dutch VAT deduction restriction)

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