Charging VAT on goods
VAT on gifts, advertising goods, samples and replacements
This page explains when the following are liable to Value-Added Tax (VAT):
- Gifts
- Industrial samples
- Replacement goods.
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).
The rate of VAT depends on the goods involved.
Industrial samples
Industrial samples given free to customers in reasonable quantities are not taxable. This is the case even where the value of the samples exceeds €20.
The 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, for example, are not taxable.
Further guidance contains more detailed information on the VAT treatment of gifts and promotional items.
Next: Special rules for premises providers