Christmas baskets and gifts: Everything you need to know about their taxation
Posted: Sun Dec 15, 2024 5:31 am
According to studies, almost 50% of respondents consider that the gifts given by the company to its employees are beneficial for creating quality relationships.
But how are they taxed? Are they a deductible expense? How are they included in the workers' payroll? In this post we answer all your questions.
Post content
Is the bill for the company Christmas dinner or lunch tax deductible?
Taxes on Christmas baskets and gifts
How are Christmas gifts and baskets taxed on workers' paychecks?
Can VAT be deducted from Christmas gifts and hampers?
Exceptions: Free samples and promotional items of little value
Christmas gifts and hampers are marketing strategies used by companies with employees, clients or suppliers. The main objective, in the case of employees, is to strengthen relationships and retain talent. Companies know this and that is why 80% of organisations in Spain give Christmas hampers to their employees.
But this tradition is not only for employers and employees, the Treasury must also be taken into account. Below, we will review everything you need to know about the taxes that affect Christmas baskets and gifts in companies.
Start of marked textTWEET IT! Find out everything night clubs and bars email list you need to know about the taxation of Christmas gifts and hampers.End of marked text
1) Is the bill for the company Christmas dinner or lunch deductible?
Two questions arise regarding the bill for the company Christmas dinner or lunch:
Can VAT be deducted from the invoice ?
Is it deductible as an expense in corporate tax?
VAT deduction from the company Christmas dinner bill
Article 96 of the VAT Law, regarding exclusions and restrictions of the right to deduct, establishes that the quotas incurred by self-consumption, leasing or use, among others , of the following goods and services may not be deducted
Food, drinks and tobacco.
Goods or services intended for customer service, employees or third parties. The following will not be considered as such:
Travel and hotel and catering services, except when the amount of these is considered a tax-deductible expense for the purposes of personal income tax or corporate tax.
But how are they taxed? Are they a deductible expense? How are they included in the workers' payroll? In this post we answer all your questions.
Post content
Is the bill for the company Christmas dinner or lunch tax deductible?
Taxes on Christmas baskets and gifts
How are Christmas gifts and baskets taxed on workers' paychecks?
Can VAT be deducted from Christmas gifts and hampers?
Exceptions: Free samples and promotional items of little value
Christmas gifts and hampers are marketing strategies used by companies with employees, clients or suppliers. The main objective, in the case of employees, is to strengthen relationships and retain talent. Companies know this and that is why 80% of organisations in Spain give Christmas hampers to their employees.
But this tradition is not only for employers and employees, the Treasury must also be taken into account. Below, we will review everything you need to know about the taxes that affect Christmas baskets and gifts in companies.
Start of marked textTWEET IT! Find out everything night clubs and bars email list you need to know about the taxation of Christmas gifts and hampers.End of marked text
1) Is the bill for the company Christmas dinner or lunch deductible?
Two questions arise regarding the bill for the company Christmas dinner or lunch:
Can VAT be deducted from the invoice ?
Is it deductible as an expense in corporate tax?
VAT deduction from the company Christmas dinner bill
Article 96 of the VAT Law, regarding exclusions and restrictions of the right to deduct, establishes that the quotas incurred by self-consumption, leasing or use, among others , of the following goods and services may not be deducted
Food, drinks and tobacco.
Goods or services intended for customer service, employees or third parties. The following will not be considered as such:
Travel and hotel and catering services, except when the amount of these is considered a tax-deductible expense for the purposes of personal income tax or corporate tax.