Gift vouchers in a sole proprietorship: what about tax and VAT?

What is a gift voucher according to the tax authorities?

A gift voucher (or gift card) is a means of payment that allows the recipient to purchase a product or service from a specific merchant or within a network of merchants.

Since 2019, VAT legislation distinguishes between two types of gift vouchers.

Single-purpose voucher

In this case, the VAT is known at the time the voucher is issued. It is clear which product or service will be purchased and which VAT rate applies.

VAT therefore becomes due at the time of sale of the voucher. It is also identifiable at the time of purchase and can therefore be deducted.

Multi-purpose voucher

Here, the VAT is not known at the time of sale. The voucher can be used for different goods or services subject to different VAT rates.

VAT only becomes due when the voucher is actually used. It is therefore not charged at purchase and cannot be deducted at that time.

Some examples make the distinction clearer.

A voucher for a massage or a gift card for a bookstore is generally considered a single-purpose voucher. A bol.com voucher or Cadeaubox, on the other hand, is a multi-purpose voucher, as multiple VAT rates may apply.

Are gift vouchers tax-deductible for a sole proprietorship?

Yes, but certain limitations apply. The tax treatment mainly depends on the recipient and the purpose.

For clients or business relations

Gift vouchers offered to clients are considered business gifts. They are only deductible up to 50%.

VAT can only be recovered if several conditions are met: the value remains below €50 excluding VAT per person per year, the gift has a professional purpose, and it concerns a single-purpose voucher.

For employees

If you grant a gift voucher to an employee, the treatment may be more favourable. It can be 100% deductible and benefit from social exemption if granted on specific occasions:

• Saint Nicholas or year-end holidays
• a marriage or birth
• retirement or a specific anniversary

The value may not exceed €40 per employee per occasion.

An important point: these social benefits only apply to employees. In a sole proprietorship, you cannot grant a social benefit to yourself.

Does deductibility apply to both physical and digital vouchers?

Yes. The format makes no difference. Whether it is a paper voucher, a digital voucher, or an e-code (such as a bol.com or Coolblue voucher), the tax rules are identical.

Three elements remain essential:

• the value and purpose must be clearly stated
• the invoice must be issued in the name of your business
• the professional use must be justifiable

A purely private gift is, of course, not deductible.

Are mixed-use vouchers (private and professional) deductible?

In the case of mixed use, only the professional portion is deductible.

Let’s take a simple example, without considering VAT.

You purchase ten gift vouchers of €25 each. Five are given to clients and five are used privately. The total expense is therefore €250.

Of this amount, €125 relates to business gifts for clients. Since deductibility is limited to 50%, only €62.50 can be recorded as a professional expense. The remaining €62.50 is not deductible.

The five vouchers used privately also represent €125. These are private expenses and cannot be deducted.

In total, out of €250 spent, only €62.50 is deductible as a professional expense.

The same principle applies to VAT: you can only deduct VAT on the professional portion and only if the €50 threshold per beneficiary is respected.

What is the VAT treatment of gift vouchers?

It depends on the type of voucher.

Single-purpose voucher

VAT is calculated at the time of sale or purchase, at the applicable rate for the product or service (e.g. 6%, 12%, or 21%).

Multi-purpose voucher

VAT is only due when the voucher is actually used. It is not charged at purchase or sale and is therefore not deductible at that moment.

In practice, most common gift vouchers (bol.com, Cadeaubox, Dreamland, etc.) fall under the multi-purpose voucher regime.

Important: the invoice or proof of purchase must clearly state the type of voucher.

How to correctly record VAT on gift vouchers

The treatment depends on your role.

As a buyer

You record the purchase invoice as an expense (representation expenses or social benefits). VAT is deducted according to the rules above, with a 50% limitation for business gifts.

No VAT deduction is possible when purchasing a multi-purpose voucher, as VAT is not charged.

As a seller

Single-purpose vouchers must be included in your VAT return for the quarter of sale.

For multi-purpose vouchers, the sale is recorded without VAT. VAT only becomes due when the voucher is used.

In your accounting software, use the correct VAT code (e.g. “advance without VAT”) to avoid errors.

Which documents should you keep for your VAT return?

Always keep:

• the supplier’s invoice for the gift vouchers
• an overview or list of beneficiaries (clients or employees)
• proof of payment

In case of an audit, you must be able to demonstrate who received the voucher and for what purpose. For small amounts, an internal note or Excel overview is usually sufficient.

In summary: gift vouchers can be tax-efficient

Gift vouchers can be a useful tool, provided certain limits are respected:

• 50% deductible as business gifts
• 100% deductible as a social benefit (only for employees and under conditions)
• VAT deduction only below the €50 threshold per beneficiary and only for single-purpose vouchers
• correct administrative treatment remains essential

PIA Go! helps you handle gift vouchers correctly

Whether you use gift vouchers for clients, employees, or within your activity, PIA Go! ensures everything is recorded correctly.

You work digitally, but never alone.