VAT on Business Gifts of Goods

Here at Porter & Woodman we often get asked about the VAT threshold on sending business gifts to employees and customers.

To explain it in black and white, here's the government's wording on it:

2.3 When to account for VAT on business gifts of goods.

You do not have to account for VAT on business gifts made to the same person so long as the total cost of all gifts you make to that person does not exceed £50, excluding VAT, in any 12-month period. To check this it is acceptable for you to adopt any 12-month period that includes the day on which the gift is made.

You must normally account for output tax on the total cost value of all the gifts where the following apply:

• the total cost of business gifts given to the same person in any 12-month period exceeds £50

• you were entitled to claim the VAT on the purchase as input tax

How to work out the cost is explained on the government website here - Notice 700.

So, if you would like a bespoke list of Branded Christmas Hampers for £50 including VAT (and delivery), Request a Quote from our team or narrow your search down within our Xmas Range