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Charging VAT on goods

  1. Overview
  2. What is a supply of goods?
  3. What are the place of supply rules for goods?
  4. Goods diverted to a private or exempt use (self-supply)
  5. VAT on gifts, advertising goods, samples and replacements
  6. Special rules for business premises and landowners
  7. When is a supply of goods not taxable?

VAT on gifts, advertising goods, samples and replacements

This page explains when the following are liable to Value-Added Tax (VAT):

  • gifts
  • advertising goods
  • samples
  • replacements.

Gifts

Gifts of goods used for your business are liable to VAT. However, if their cost to you is €20 or less (excluding VAT) they are not liable to VAT.

You need to account for VAT on the full amount of the gifts if the VAT exclusive cost is greater than €20.

The chargeable amount is the original cost to you (excluding VAT).

No allowance is made for the amounts below which gifts are not taxable where gifts cost more than €20 (excluding VAT).

The rate of VAT depends on the goods involved.

Advertising goods and industrial samples

Advertising goods and industrial samples given free to customers in reasonable quantities are not taxable. This is the case even where the value of the samples exceeds the €20 limit. 

The advertising goods and industrial samples need to be in a form not ordinarily available for sale to the public.

Replacement goods

Replacement goods supplied free of charge in accordance with warranties or guarantees on the original goods are not taxable.

Further guidance contains more detailed information on the VAT treatment of gifts and promotional items.

Next: Special rules for business premises and landowners

Published: 18 October 2023 Print this page

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