Are business gifts deductible in the Netherlands? 2026 guide for freelancers

What counts as a business gift (relatiegeschenk) and when is it deductible in 2026?

A business gift (relatiegeschenk) is an item or service you give to a client, supplier, or other business contact to support work-related relationships. In 2026, business gifts can be a business expense, but some gifts fall under "limited-deductible costs" (beperkt aftrekbare kosten). For these costs, Dutch rules use a €5,700 threshold or a percentage limitation (80% or 73.5%).

Business gifts are only deductible when the expense has a clear business purpose and is properly recorded. Browse the [Knowledge Hub](/knowledge-hub) for more freelancer accounting guides. A personal gift to a friend or a gift mainly for private use is not a business expense, even if it was paid from a business bank account.

Belastingdienst treats some gifts as part of limited-deductible cost categories (for example, certain representation costs and some business gifts). That classification matters because the deduction is restricted in 2026. The restriction uses either a €5,700 threshold or a fixed percentage of the costs (80% for income tax and 73.5% for corporate tax).

• Example: sending a €40 branded notebook to a client after a completed project is typically business-related.
• Example: buying a €300 birthday gift for a friend is private and not deductible.
• Example: giving a client event ticket can be limited-deductible if it is treated as representation.
• Rule of thumb: record 3 fields for every gift - recipient, date, and business reason.
• Keep the supplier invoice/receipt and store it for 7 years (10 years for real-estate invoices).

How does the €5,700 threshold and the 80% / 73.5% rule work for gifts and representation costs?

For limited-deductible costs (beperkt aftrekbare kosten) in 2026, Belastingdienst sets a threshold of €5,700. Costs in this category are deductible only for the part above €5,700. Instead of using the threshold, entrepreneurs may deduct a fixed percentage: 80% for income tax (inkomstenbelasting) cases and 73.5% for corporate tax (vennootschapsbelasting) cases.

For a ZZP'er (zelfstandige zonder personeel) who files income tax (inkomstenbelasting), the alternative percentage is 80%. For a BV that files corporate tax (vennootschapsbelasting), the alternative percentage is 73.5%. These percentages apply specifically to the limited-deductible cost category, not to normal business costs like software subscriptions.

To avoid surprises, track limited-deductible costs as a separate bucket during the year. If limited-deductible costs are close to €5,700, the threshold method and the percentage method can lead to different deductible totals. The Belastingdienst page explicitly mentions representatiekosten (representation costs) and certain relatiegeschenken (business gifts) as examples of this limited category.

Can you reclaim VAT (btw) on business gifts and when do you have to repay it?

VAT (btw) on gifts, business gifts (relatiegeschenken), and employee benefits can be restricted. Belastingdienst uses a €227 threshold (excluding VAT) per recipient per financial year for input VAT on these costs. If the total cost per recipient stays at or below €227, input VAT can remain deductible under this rule. If the total exceeds €227 and VAT was reclaimed, the reclaimed VAT must be repaid.

Belastingdienst requires that gift costs are allocated per person to test the €227 threshold. If a gift is for a group (for example, a shared benefit for 10 people), the total cost is divided across the group to determine the per-person amount. If the €227 threshold is exceeded for a person, input VAT on those gift-related costs is not deductible under this limitation.

Belastingdienst requires a correction if VAT was reclaimed while the €227 threshold was exceeded: repay the reclaimed VAT. Keep the per-recipient calculation and the invoices so the repayment can be explained during a check. To understand how VAT is reported and corrected in practice, see the [VAT return guide](/knowledge-hub/vat-returns-netherlands-expat-freelancer-guide/).

• Track gift spending per recipient per year (name + date + amount).
• Store the supplier invoice showing VAT, so input VAT can be proven.
• Allocate group gifts by splitting costs across all recipients (for example, total ÷ 10 people).
• Check the €227 total during the year so any VAT repayment is caught early.
• Remember the separate €15 rule for "gifts of minor value" (geschenk van geringe waarde) in VAT law (useful when giving away small items).

If you have employees, how do gifts work under the work-related costs scheme (werkkostenregeling, WKR) in 2026?

The work-related costs scheme (werkkostenregeling, WKR) lets an employer give certain benefits (including gifts) without payroll tax, as long as the benefits fit within the "free space" (vrije ruimte). In 2026 the free space is 2.00% of fiscal wage up to €400,000 and 1.18% above €400,000. Spending above the free space triggers an 80% final levy.

Employee gifts can be paid by the business and either taxed as normal wages or designated under the WKR as final levy wages (eindheffingsloon). If the designated total stays within the 2026 free space percentages, no wage tax is due for the employee on those gifts. This is commonly used for small gifts such as a holiday package or a thank-you voucher.

Belastingdienst states that the free space is recalculated each year and unused free space cannot be carried forward. For a freelancer who hires a first employee, the practical step is to track WKR-designated gifts in a separate list and compare the total to the free space based on the fiscal wage.

• Calculate 2.00% of fiscal wage up to €400,000 and 1.18% of the amount above €400,000.
• Decide per benefit whether it is normal wage or WKR-designated (eindheffingsloon).
• Keep a yearly WKR overview with dates, description, and amount per gift.
• Check totals before the last payroll tax period of the year.
• If the free space is exceeded, budget for the 80% final levy on the excess.

What evidence do you need to keep for business gifts, and how long must you store it?

Belastingdienst requires entrepreneurs to keep a controllable administration for VAT and other taxes. The standard retention period is 7 years for business administration records, and 10 years for records about real estate (onroerende zaken). Invoices you send or receive must be kept in their original form (digital stays digital). A clear gift log helps justify the business purpose.

Keep a gift audit trail: supplier invoice/receipt, proof of payment, and a recipient log (who, when, and business reason). Belastingdienst states that invoices must be kept in the original form (digital stays digital) and can be scanned if the scan is a complete and correct copy with authenticity features preserved. The standard retention period is 7 years, and it is 10 years for invoices about real estate (onroerende zaken). See the [deductible expenses guide](/knowledge-hub/deductible-expenses-freelancers-netherlands/).

What happens if you file or pay late, or claim deductions incorrectly?

If a return is filed late or a tax amount is paid late, Belastingdienst can issue an administrative penalty (verzuimboete) and/or a payment default penalty (betaalverzuimboete). In 2026, the income tax late-filing penalty is €469 and can increase up to €6,709 for repeated defaults. For VAT late payment, the penalty is 3% of the late amount, with a €50 minimum and a €6,709 maximum.

Penalties depend on the tax type and on whether the issue repeats. For assessment taxes, Belastingdienst can apply a 5% payment default penalty with a €50 minimum and €6,709 maximum per default. For VAT, Belastingdienst can also issue an additional assessment (naheffingsaanslag) when VAT is unpaid at the time of a check, alongside the 3% penalty.