With a Giffy, the digital giving process becomes unique: you personalise digital gift vouchers with a (video) message, then we add the company logo and your look-and-feel to the digital gift vouchers and possibly the gift shop. A Giffy is redeemable for a wide range of digital gift vouchers from other brands and experiences. This makes Giffy the digital gift card with something for everyone, making it the ideal corporate gift for employees, customers and partners alike. And it is also very fiscally advantageous, as often (part of) the corporate gifts are tax deductible.

If you use a Giffy to appreciate employees or as a loyalty bonus, then a Giffy falls under the work-related costs scheme (WKR): the untaxed allowances that you as an employer may give to your employees. The tax authorities allow a maximum of € 2,400. You can also reclaim the VAT on business gifts if the total amount of gifts per person per year does not exceed €227.

Business gifts and tax: what about it?

Business gifts fall under entertainment expenses for tax purposes: they are costs you incur for maintaining external contacts and performing representative activities. Most entertainment expenses are fully deductible. VAT on business gifts is also deductible as representation expenses. Corporate gifts are only deductible as representation expenses if they exceed €5,600 in 2024. This threshold differs per tax year. In 2023, for example, it was still €5100.

Do you not reach this amount? For example, because you are self-employed or a small business.

Then you may enter the costs for business gifts under income tax and deduct 80% of these costs in your tax return. Business gifts are therefore also deductible for ZZP'ers. This also applies to those who have income from other work. For entrepreneurs for corporate income tax purposes, a rate of 73.5% applies.

Tax benefits of smart business gifts

As an entrepreneur, you naturally understand the importance of maintaining good relationships with clients, partners and employees. With Giffy's innovative platform, you send out one (or hundreds) of personalised, digital gift cards easily and efficiently and, at the same time, enjoy the tax benefits of corporate gifts because they are tax deductible.

Corporate gifts for Marketing: what is and isn't allowed?

In the world of corporate gifts, it is crucial to be aware of the rules surrounding entertainment expenses, corporate gifts and the related tax aspects.

Corporate gifts are known to be an effective tool for strengthening business relationships and increasing brand awareness. However, it is important to know the rules around deductibility of business gifts and VAT to avoid penalties and make the most of tax benefits. 

Please note that for The Netherlands:

... you donate a maximum of € 227,-. per relation (excl. VAT) per year: this way a business gift remains tax deductible. Read more about this under “Business gifts and taxes: what about that?

... you personalize the business gift: Making a business gift personal to the recipient not only shows appreciation, but also helps emphasize that it is a business gift, which is important in the event of a tax audit.

... you keep accurate records: Download Giffy's monthly invoices and note the recipients and business purpose. This helps prove that it is a business gift, which is important in the event of a tax audit.

...you can also use corporate gifts as a marketing tool: You can also make corporate gifts part of your marketing strategy. You can use them for promotion or to acquire new clients. You can also justify business gifts as an advertising expense. In that case, the costs of business gifts are fully deductible.

Contact a tax advisor for specific advice on the benefits of gift cards as business gifts, tailored to your situation.

Staff and corporate gifts: how does it work?

In today's competitive job market, employers strive to retain talent. Celebrating birthdays and anniversaries as expressions of staff appreciation is becoming more common. In addition, giving gifts in recognition of employees' dedication to their work is growing in popularity.

Non-taxable for employees: Gift cards are considered non-taxable in-kind compensation for employees, which means they do not have to pay income tax on their value. This is in contrast to monetary bonuses, which are taxed as part of the employee's income.

• Lower social contributions for employers: Employers typically pay social contributions on monetary bonuses, which increases the overall cost. With gift cards, these social contributions often do not apply, so the cost to you as an employer can be lower.

  Administrative convenience: Managing gift cards is administratively easier than processing monetary bonuses. Giffy sends an invoice once a month for all Giffy's sent, so no administrative hassle. Thus, fewer calculations are required and there is less chance of errors in managing gift cards, reducing the administrative burden for both employers and employees.

  VAT deductibility: If you use gift cards as corporate gifts, the VAT on the purchase of gift cards is deductible for you as an employer. The cost then falls under entertainment expenses. This is not the case with monetary bonuses. Thus, gift cards as business gifts can lead to an additional tax benefit for your organization.
  
  Read more about this under “Corporate gifts and tax: what about that?”.
  
  

Clients and Partners: Corporate Gifts and Tax Benefits

Discover the tax benefits of giving gift cards as corporate gifts to your clients and partners. With the right approach, you will not only show appreciation, but also take advantage of various tax benefits. Here are some important points to keep in mind:

• Business gift deductibility: In many cases, business gifts, such as gift cards, are deductible as entertainment expenses for your company. This means you can include the cost of these gifts as business expenses and use them as a deduction.

• VAT on corporate gifts: When providing gift cards to clients and partners, it is important to consider how VAT is treated. In some cases, the VAT on corporate gifts is deductible for your business, providing a tax advantage. Read more about this under “Corporate gifts and tax: what about it?”.

• Administrative convenience: Giving gift cards as corporate gifts can also bring administrative benefits. Compared to other gifts, such as tangible items, managing gift cards is simpler and results in less administrative hassle. With Giffy, you get access to a dashboard where you manage all gift cards. In addition, we send an invoice once a month for all Giffy's sent.

  Tax benefits for self-employed professionals: As a self-employed professional you may be able to take advantage of tax benefits by offering business gifts in the form of gift cards. These expenses can often be claimed as a deduction on your tax return.
  
  

Sustainable Corporate Gifts and Tax Benefits.

Unlike regular corporate gifts, which usually consist of physical items, Giffy's digital gift certificates are a sustainable option. Because the gift cards do not have to be physically produced, it saves paper and plastic. For those who still prefer a tangible gift card, it is printed on ecological paper. In addition, Giffy offers a wide selection of digital gift cards for which a Giffy is redeemable, so there is something suitable for every recipient. This helps reduce unwanted purchases and returns.

What makes Giffy extra special is that a portion of the proceeds are donated to the Plastic Soup Foundation with every Giffy redeemed. If corporate sustainability is an important part of your corporate vision, then a gift card from Giffy is the perfect HR relationship gift for your organization. With Giffy you not only make a thoughtful gesture, but you also contribute to a cleaner planet and a more sustainable future.

Why choose Giffy for corporate gifts?

Using gift cards as corporate gifts for employees, clients and partners not only shows that you appreciate them, but also provides several tax benefits.

A gift card is non-taxable for employees because gift cards are considered non-taxable employee in-kind compensation. Also, as an employer, you don't pay social security contributions on a gift card. However, this is the case when gifting monetary bonuses to employees.

In addition, gifting gift cards offers more administrative convenience compared to processing monetary bonuses. Giffy sends an invoice once a month for all Giffy's sent, which saves a lot of administrative hassle.

In addition, Giffy makes it easy to personalize each gift card, making it easy to prove in a tax audit that your expenses were really corporate gifts.