Netherlands: No VAT recovery, certain promotional gifts or staff benefits

VAT rules treat certain promotional gifts or staff benefits as if they were provided free or below cost by the business

No VAT recovery, certain promotional gifts or staff benefits

A decree precludes the recovery of value added tax (VAT) on certain promotional gifts and staff benefits. The rules treat these gifts or benefits as if they were provided free or below cost by the business.

Under these measures, a threshold of €227 per recipient applies.

Accordingly, no adjustment is necessary if the total purchase and production costs (the cost price) of the gifts or benefits are less than €227 (excluding VAT) per annum, per recipient. This is a final threshold—if the threshold is exceeded, the input VAT regarding provisions of such gifts or benefits is also non-recoverable.

Read a December 2021 report prepared by the KPMG member firm in the Netherlands

 

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