Netherlands: VAT deduction exclusion decree on promotional gifts and staff benefits

Flowchart to determine whether a deduction exclusion decree adjustment is necessary

Flowchart to determine whether a deduction exclusion decree adjustment is necessary

The value added tax (VAT) deduction exclusion decree (DED) precludes the recovery of VAT on promotional gifts and staff benefits if they were provided free or below cost by the business.

No DED adjustment is necessary if the total purchase and production costs (the cost price) of the benefits are less than €227 (excluding VAT) per year per recipient. If the threshold is exceeded, the input VAT on the provisions within the threshold amount is also non-recoverable. 

Read a December 2022 report [PDF 726 KB] prepared by the KPMG member firm in the Netherlands that includes a flowchart to determine in general terms and on a step-by-step basis whether a DED adjustment is necessary.

 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.