You usually offer a customer gift every year ? It's a very thoughtful gesture that proves that you care about customer relations. However, to do this, don't be too generous, as it could cost you dearly. The taxation of corporate gifts is indeed an important detail to remember. So, here are some topics that may interest you in this regard so that you have points of reference when choosing which customer gift to give.
Profit tax and customer gift
If we refer to industrial and commercial profits or corporate tax, a customer gift benefits from a tax deduction on two conditions: it must be purchased as part of a business need and its value must not exceed a certain value. But these conditions are applied according to the specificities of your company, in particular its size, its field of activity, etc.
In addition, if you allocate an amount greater than 3,000 euros per year in gifts for your employees and clients, you must put it on your overhead statement n ° 2067 which you must provide when declaring your annual result. If, on the other hand, your company is of an individual nature, corporate gifts must be entered in annex 2031 ter of the income statement.
In addition, within the limit of 3,000 euros, are not considered advertising items for marketing purposes, the unit price of which is below 65 euros including tax. You do not therefore have to mention them in the declarations cited above.
VAT on the customer gift
If you are considering a customer gift with a value of 69 euros including tax every year and for each beneficiary, whether it is the purchase price or the cost price, you do not have to regularize your situation in relation to the applicable VAT.
On the other hand, if the value of the customer gift is greater than 69 euros including tax, you must make an adjustment. You have two cases that present themselves to you:
- If your company bought the gifts from a company specializing in corporate gifts, you must therefore pay the VAT which will be deducted from it.
- If your company preferred to design the gifts in question, you must have them delivered yourself. This allows you to play on a fictitious tax mechanism which assumes that you sell yourself these gifts, and that in this sense, you have to collect the VAT applied to them.
However, you do not have to pay VAT if the VAT on the purchase price or the manufacturing costs have not been recovered during the acquisition / manufacture.
In addition, it is important to know that the payment of VAT is only to be done if the customer gift is a good. But, if it is as a service, such as an invitation for example, it is entirely exempt from VAT and you do not have to make any adjustments in this case.
In High-tech gifts you can be sure to find gifts for your customers in all circumstances.
