What taxation for business gifts in 2024?

The end of the year can be an opportunity to give a gift to your main customers to thank them for the trust they place in you and to consolidate the professional relationship you have with them. Caution: you need to be sure to stay within the limits of the tax regulations to avoid any risk of adjustment.

VAT recovery

The VAT incurred on gifts is deductible only when the unit value of each gift does not exceed, for 2024, €73 including tax, per year and per beneficiary. Bear in mind that the tax authorities include in this value the shipping costs borne by the company.

Deductibility

Gifts to customers are deductible expenses from taxable profits if they are given in the direct interest of your company and their price is reasonable.

Important: You must be able to prove the usefulness of business gifts for your business (e.g., customer loyalty) and to give the identities of the recipients. It is therefore recommended to keep all the necessary supporting documents (invoices, names of customers, etc.).

Reporting obligation

If the total amount of business gifts exceeds €3,000 over the budget year, you must, in principle, declare them, under penalty of a fine. This obligation applies to businesses conducting an industrial or commercial activity and subject to income tax under the actual regime, as well as companies subject to corporate income tax. In practice, sole proprietorships must fill in a special box in Annex No. 2031Bis to their income statement. As for companies, they must attach the detailed statement of general expenses No. 2067 to their income statement.