Customer gift for a client up to €227 excl. VAT per relationship per year? The VAT is fully deductible. With Cadeo, the recipient chooses from 1,200+ products — from €15, VAT-deductible, on invoice.
Customer Gifts up to €227 — VAT-Deductible Without the Hassle [2026]
You want to surprise your clients with a gift. But what are the tax rules? Can you deduct the VAT? Where is the limit? And what happens if you go just over it? This article revolves around one number: €227. The threshold within which you can fully deduct the VAT on customer gifts to business contacts — and how to handle it smartly.
Give customer gifts to clients up to €227 excluding VAT per relationship per calendar year? Then the VAT is fully deductible. Go over it — even by just €1 — and the VAT deduction lapses on the full amount. The costs themselves are deductible business expenses (80% for sole proprietors/partnerships, 73.5% for BV/NV). With Cadeo, you send a choice gift from €15 per recipient: the client chooses, you invoice on company name. VAT-deductible, WKR-proof, no hassle.
1. The €227 threshold explained — what can you give clients?
The Dutch Tax Administration uses a clear threshold for VAT deduction on customer gifts: €227 excluding VAT per relationship per calendar year. Stay below that amount, and you may deduct the VAT paid on the gift in full in your VAT return. Go above it, and you lose the VAT deduction on the full amount — not just on the part above the threshold.
That last point is a common mistake. It is not an exemption where the first €227 remains deductible and only the excess does not. It is an all-or-nothing threshold. At €226 you deduct all VAT. At €228 you deduct nothing. That makes it essential to track what you spend per relationship per year.
Note: per relationship, not per person
The €227 threshold applies per business relationship — meaning per company, not per contact person. Give three employees of one client a gift of €80 each? Then you are at €240 for that relationship and lose the VAT deduction on the full amount. So keep track by client company of what you give during a calendar year.
The €227 threshold has been stable for years. No changes have been announced by the Tax Administration for 2026 and 2027. The amount excludes VAT — a gift of €227 excl. VAT therefore costs you €274.67 incl. 21% VAT, of which you get back the €47.67 VAT. That €47.67 per relationship per year is real money you lose if you go over the threshold. With 50 clients, that is €2,383.50 in VAT deduction you want to keep.
Good to know: this concerns gifts to external business contacts — clients, prospects, suppliers, and partners. Gifts to your own employees are subject to different rules under the Work-Related Costs Scheme (WKR). And cross-border gifts are subject to different VAT rules again — read more in our guide to VAT, final levy, and cross-border gifts.
2. How does VAT deduction on customer gifts work exactly?
VAT deduction on customer gifts works differently than most entrepreneurs expect. There are two layers: VAT deduction and profit deduction. Each has its own rules and limits. Mixing those up is the quickest way to leave money on the table.
Layer 1: VAT deduction (the €227 threshold)
When you buy a customer gift for a client, you pay VAT to your supplier. That VAT can be deducted as input VAT in your VAT return — provided the total value of gifts to that relationship in the calendar year remains below €227 excluding VAT. If you exceed it, the deduction lapses on the full amount. You must then repay VAT already deducted earlier that year. You do that in the final VAT return of the year.
Layer 2: profit deduction (deducting costs from profit)
Separate from VAT, customer gifts are business expenses that you may deduct from profit. But not 100%. The deductible percentage depends on your legal form:
- Income tax (sole proprietorship, general partnership, professional partnership): 80% of the costs deductible
- Corporate income tax (BV, NV, cooperative): 73.5% of the costs deductible
A customer gift of €100 excl. VAT therefore costs a BV owner effectively €100 – €21 VAT deduction – (€100 × 73.5% × 25.8% corporate tax) = about €60 net. That is a big difference compared with €100 — as long as you stay below the €227 threshold.
Exception: the 30% rule
There is one exception to the €227 threshold: if the recipient can use the gift for at least 30% business purposes (and therefore could deduct VAT themselves), then you as the giver may always deduct the VAT — even above €227. In practice this rarely applies to customer gifts, because most gifts (wine, chocolate, choice gifts) are used privately.
The combination of VAT deduction and profit deduction makes customer gifts below the €227 threshold particularly attractive from a tax perspective. You give a client something valuable, strengthen the relationship, and the government effectively pays 40–50% of the bill. But only if your records are in order and you track what you give per relationship.
3. Calculation example: customer gift €100 vs €250
Theory is nice, but numbers are more convincing. Below are two scenarios for a BV giving a customer gift to a client. The difference between just below and just above the €227 threshold is striking.
Scenario A: choice gift of €100 (below the threshold)
Scenario B: luxury package of €250 (above the threshold)
The difference is clear: in scenario A, the gift costs you €81 net for a gift worth €100. In scenario B, it costs €245 net for a gift worth €250 — because you lose the €52.50 VAT entirely. So increasing from €100 to €250 costs you an extra €164 net, while the gift value only rises by €150. From a tax perspective, it is smarter to stay below €227 and invest the difference in more relationships.
Watch out: the €227 applies per full calendar year
Give a bottle of wine worth €30 in March and a Christmas gift worth €200 in December to the same relationship? Then you are at €230 for that year — above the threshold. The VAT on both gifts is then no longer deductible. So keep a running record per relationship.
4. What does and does not fall under the €227 threshold?
Not everything you give to a client counts toward the €227 threshold. The Tax Administration distinguishes between customer gifts (count) and business expenses of a different nature (do not count). That distinction determines whether you can deduct the VAT.
| What you give | Counts toward €227? | VAT deductible? |
|---|---|---|
| Choice gift via Cadeo | Yes, customer gift | Yes, if total < €227 |
| Bottle of wine or whisky | Yes, customer gift | Yes, if total < €227 |
| Christmas hamper | Yes, customer gift | Yes, if total < €227 |
| Flowers for a new office opening | Yes, customer gift | Yes, if total < €227 |
| Business lunch or dinner | No, entertainment costs | Separate regime: food 0% VAT deduction |
| Promotional items < €15 | No, if they are < €15 each | Yes, always deductible |
| Samples and test products | No, business costs | Yes, normal input VAT |
| Sponsorship with consideration | No, advertising costs | Yes, normal input VAT |
The common thread: if something is a one-sided gift (the client does not have to give anything in return), then it is a customer gift and counts toward the €227. If there is a business consideration (sponsorship, advertising service), it falls outside the threshold and is treated as an ordinary business expense with full VAT deduction.
A useful exception is promotional items under €15 each — pens, mugs, notebooks with your logo. These do not count toward the €227 threshold and the VAT is always deductible. If you combine a promotional item (an €10 branded mug) with a choice gift (€100 via Cadeo), only the choice gift counts. Then you are well below the threshold.
Cadeo tip: invoicing by campaign
With Cadeo, you receive one invoice per campaign, in the company name, with VAT specified. That makes it easy to keep track of how much you spent per relationship. Combine multiple relationships in one campaign? Then the dashboard splits the costs per recipient.
5. Choice gift vs physical gift — what is smarter for customer gifts?
When gifting clients, you generally have two options: a physical gift you choose yourself (wine, chocolate, a gadget) or a choice gift where the recipient chooses for themselves. Tax-wise, it makes no difference — the €227 threshold applies to both. But in practice there are five reasons why a choice gift is smarter within the €227 threshold.
No waste of your budget
A bottle of wine for a client who does not drink. A chocolate box for someone with an allergy. With a physical gift, the chance of a mismatch is very real. With a choice gift, the recipient chooses from 1,200+ products — from Bol.com gift cards to sustainable products. The redemption rate at Cadeo is 95%, versus an estimated 70–85% for traditional gift packages.
Exact budget control within the €227 threshold
With Cadeo, you set the exact amount per recipient: €25, €50, €100, €200 — or any amount in between. No surprises afterward. With physical gifts, prices fluctuate, shipping costs are added, and it is harder to stay precisely under €227.
No logistical hassle
You have to buy, store, wrap, and ship physical gifts. With 50 clients, that is a project in itself. With a choice gift via Cadeo, you send a link by email or QR code — the recipient chooses and the gift is delivered directly to their home. You do not have to ship anything.
More personal than you think
The objection to choice gifts is often: “it feels impersonal.” But with Cadeo, you can add a personal message, optionally a video, and the portal is fully branded in your own style. The recipient experiences it as a personal gift from your company — only the choice of what is theirs.
VAT administration automatically in order
With Cadeo, you receive an invoice in the company name with VAT details per campaign. That invoice is your proof for the VAT deduction. With physical gifts from different suppliers, you have to collect all receipts yourself and add them up per relationship. With a choice-gift platform, you have one clear invoice.
The practical advantage of a choice gift within the €227 threshold: you send a link, the client chooses something they genuinely want, and your invoice is immediately your VAT proof. No boxes, no returns, no gifts that end up in a drawer. And with Cadeo, you only pay when the recipient actually redeems it — unredeemed gifts cost you nothing.
6. Practical: how to send a VAT-deductible customer gift via Cadeo
From decision to gift in your client’s mailbox: this is how it works in practice. No quote process, no minimum order, no waiting for weeks. The whole process takes 15 minutes to set up — Cadeo handles the rest.
Create a campaign
Choose your budget per recipient (from €15), write a personal message, and optionally upload your logo or a video. Takes 10–15 minutes.
Add recipients
Enter names and email addresses, or upload an Excel file. No email? Use a QR code on a card. No minimum order — 1 or 500 recipients, same price.
Send
Cadeo sends the gift link by email or you share the QR code yourself. The recipient chooses from 1,200+ products. Digital gifts are immediate, physical products are delivered to their home.
Receive the invoice
Invoice in company name, per campaign, net 30 days. VAT itemized separately. One invoice = your proof for VAT deduction. Done.
After sending, you can track in the Cadeo dashboard exactly who redeemed, what they chose, and whether they left a thank-you message. The average redemption rate is 95% — meaning almost every client actually opens the gift and makes a choice. Compare that to physical gifts, where you never know whether they were appreciated.
Invoice example
Campaign: Year-end gift clients 2026
Recipients: 40 clients × €100 = €4,000 excl. VAT
VAT (21%): €840
Total invoice: €4,840 incl. VAT
VAT deduction: €840 (all recipients under €227 per relationship)
The invoice states the number of recipients, the amount per recipient, and the VAT. That is everything your accountant needs.
Important: with Cadeo, you only pay for gifts that are actually redeemed. If a client does not open the link within the set period (standard 90 days, adjustable), those costs are not invoiced. That makes the risk zero: you only pay for gifts that are actually appreciated.
7. Common mistakes with customer gifts and the €227 threshold
The €227 threshold is simple in theory, but in practice things often go wrong. These are the seven mistakes we see most often — and they cost businesses unnecessary money every year.
Mistake 1: Not tracking per relationship
Most companies track what they spend on customer gifts in total, but not per relationship. Yet the €227 threshold applies per relationship per year. A bottle of wine during a site visit in March plus a Christmas gift in December can together already exceed the threshold. Keep a simple list — or use a platform like Cadeo that tracks it automatically.
Mistake 2: Thinking it applies per person
The threshold applies per company (per relationship), not per contact person. If you give the director, buyer, and project manager of the same client each a gift? Then it all adds up. Three gifts of €80 = €240 — and you lose the VAT deduction on the full amount.
Mistake 3: Thinking you can still deduct the first €227
It is not a threshold exemption. If you exceed it, the VAT deduction expires on the full amount — not just on the part above €227. This is the most expensive misconception. A gift of €230 costs you €48 in VAT that you do not get back, while €227 would cost you €0 extra VAT.
Mistake 4: Not keeping a VAT invoice
Without an invoice that states VAT, you cannot deduct anything. A receipt from a liquor store without VAT details is not enough. Make sure you have an invoice in the company name for every customer gift, with VAT shown separately. With Cadeo, that is standard.
Mistake 5: Forgetting the calendar year resets on January 1
The €227 threshold applies per calendar year. A gift in December and a gift in January to the same relationship are not added together — as long as they fall in different years. That creates room: give the Christmas gift in December and the next gift only after January 1.
Mistake 6: Confusing client gifts with staff gifts
Gifts to your own employees do not fall under the €227 threshold but under the WKR (free space). Different rules, different thresholds. If you give a gift to a client who is also a former employee? Then it counts as a customer gift, not a staff gift.
Mistake 7: Being too stingy so it fails to make an impression
The €227 threshold is a maximum, not a guideline. A customer gift of €10 is VAT-deductible, but rarely makes an impression on a client that generates €50,000 in annual revenue. The sweet spot for customer gifts via Cadeo is between €50 and €150 — well below the threshold, but valuable enough to be a meaningful gesture.
The easiest way to avoid all of these mistakes: use one platform for all your customer gifts, with automated invoicing per relationship. Cadeo offers exactly that: you can see per campaign and per recipient what you spent, and the invoice is immediately your VAT proof. No Excel tracking, no hunting for receipts, no surprises at tax time.
Frequently asked questions: customer gifts, €227 threshold, and VAT deduction
Yes, provided you stay below €227 excluding VAT per relationship per calendar year. The VAT you pay on the customer gift may then be fully deducted as input VAT in your VAT return. If you exceed the threshold, the VAT deduction lapses on the full amount — not just on the part above €227. So make sure you have an invoice with VAT details in the company name.
Per company (per business relationship). If you give three contacts within one client organization a gift each, add the amounts together. Three gifts of €80 to employees of the same client = €240 total, which puts you over the threshold and causes you to lose the VAT deduction for that relationship entirely.
Then you lose the VAT deduction on the full amount of gifts to that relationship in that calendar year. It is an all-or-nothing threshold. At €228 excl. VAT you lose €47.88 in VAT deduction. If you already deducted VAT earlier in the year on gifts to that relationship, you must pay it back in the final VAT return of the year.
Yes, but not 100%. For income tax (sole proprietorship, general partnership), 80% is deductible. For corporate income tax (BV, NV), 73.5% is deductible. This is separate from VAT deduction: the profit deduction applies regardless of whether you are above or below the €227 threshold. Only the VAT deduction lapses when you exceed it.
Yes. A choice gift via Cadeo is, for tax purposes, a customer gift. You receive an invoice in the company name with VAT itemized separately. As long as the total per relationship per year stays below €227 excl. VAT, the VAT is fully deductible. Cadeo starts at €15 per recipient — well below the threshold. If you give multiple gifts to the same relationship in a year, you must track the total yourself.
No, provided they cost less than €15 each. Promotional items with your company name or logo that cost less than €15 each do not count as customer gifts. VAT on them is always deductible, regardless of how much you spend per relationship. If a promotional item costs more than €15 each, then it does count toward the €227 threshold.
No. The Tax Administration has not announced any changes to the €227 threshold for 2026 or 2027. The amount has been stable for several years. If a change is made, it will be announced through the Tax Plan of the relevant year, usually in September. Always check the current status on belastingdienst.nl.
