Rules for business gifts and tax deductions

Rinke den Os
Background
8 December 2025
Edited 29 January 2026
3 min
Managing and growing
Marketing

You have had a good year. Or completed a project with great results. To thank your partners and clients, you want to offer them a gift. But what are the rules for business gifts? This article explains what you are allowed to spend and which costs you can declare to the Netherlands Tax Administration.

In addition to the regulations, this article also looks at the unwritten rules. What are the do's and don’ts when you want to give a suitable gift.

What can a gift cost?

The value of the gift you give is up to you. But more expensive is not always better. An expensive gift may embarrass the recipient. And the cost does matter to the Netherlands Tax Administration. They set the rules if you want to claim money back.

What rules does the Tax Administration have?

The Tax Administration has different rules when it comes to business gifts (in Dutch). For example, VAT may not always be deducted. In addition, you may deduct some of the costs you incur from your profit.

VAT and the threshold amount

The Tax Administration has set a threshold amount of €227. As long as your gifts to a client or partner within a calendar year remain below this amount, you may deduct the VAT paid on these gifts in full as input VAT. Note: a client or partner in this case means a business. If you want to give a gift to 5 employees of the same business, the limit remains €227 in total.

Exception

If you spend more than €227 on a gift, you may not deduct VAT. There is an exception to this rule. It applies if the recipient could also have bought your gift for their business and would have been able to deduct at least 30% of the VAT. In that case, as a giver, you may always deduct the VAT over the whole amount of the gift.

30% VAT rule

You may either deduct VAT in full or not deduct it at all. Deducting 30% does not happen in practice. The Tax Administration only uses the 30% rule to weigh up the situation in case of doubt. For example, if you give a phone that the recipient uses much more privately than for their business. In that case, the recipient would not have been allowed to deduct the VAT on the purchase of the phone themselves. So as a giver, neither are you.

Deducting costs from your taxable profit

Costs incurred for business gifts can be reported to the Tax Administration as representation costs. You may deduct a percentage of the costs from your profit. What percentage this is depends on your legal structure.

Legal structure	Deduction percentage
eenmanszaak, VOF, maatschap, CV	80%
bv, nv, coöperatie, stichting of vereniging	73.5%

The costs of a business gift are not fully deductible. This is because the gifts are often personal in nature or are intended for eating or drinking. For example, wine or chocolates.

To whom may you give a business gift?

Do you report VAT and expenses to the Tax Administration? Then you may only give business gifts to existing customers, partners, and suppliers. This also makes a business gift different from a gift for your staff.

Sometimes, entrepreneurs use business gifts to secure a new client. Or they give a gift to an influencer or journalist in the hope of getting publicity in return. According to Tax Administration rules, these expenses are promotional expenses and are fully deductible.

When and why do you give a business gift?

You give a gift when you think it is appropriate. That could be at the end of the year, as a thank-you for collaboration, assignments, or orders in the past 12 months. But it could just as easily be in the summer, after placing an order, on an anniversary, or after a period of collaboration.
business gift shows that you value your customer, partner, or supplier. With a gift, you invest in the relationship with the people and organisations that are important to you. Gifts can help restore a troubled relationship. An appropriate gift can also be a way to offer an apology after a mistake or problem.

What is an appropriate business gift?

You want to give your business associate a gift. You do this with a positive intention. But a gift can also give the recipient a negative feeling. That is something you want to avoid. What are the do's and don’ts?

Do not give an overly expensive gift. This can feel like a bribe. And it can put the recipient in an awkward situation. Many businesses only allow employees to accept gifts up to a maximum amount.
Respect people’s boundaries. Your gift should not have political, religious, or sexual overtones. Also be careful with jokes: what is humour to you may be unfunny, vulgar, or offensive to someone else.
Do not give cheap, useless items. This damages your image and is wasted effort.
Do not place your logo too prominently on a gift. Your gift should not come across as an advertising brochure.
Do not expect a gift in return. Your gift is simply to show appreciation. It is not meant to immediately bring in an order or put pressure on the recipient.
Choose the right moment. You do not want to give a beach towel when everyone has already been on their summer holiday.
Do not buy impersonal gifts in bulk. A personalised gift has the most impact.