Many companies provide promotional items, free samples, or business gifts to customers and partners. However, businesses often overlook the VAT implications of these activities.
Common examples include:
- promotional merchandise,
- business gifts,
- free product samples,
- complimentary services.
The VAT treatment depends on:
- the value of the item,
- its purpose,
- the connection to business activities.
Incorrect treatment may result in:
- additional VAT liabilities,
- corrections to VAT records,
- questions during tax audits.
➡️ Important: Free of charge does not always mean VAT-free.
CTA:
👉 We can help ensure the correct VAT treatment of your promotional activities.