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Tobacco and spirits

Tax risk: 🔥🔥 | Deductibility: 50%.

Lionel ROSU avatar
Written by Lionel ROSU
Updated over 2 months ago

50% deductible and non-recoverable VAT, with some exceptions!

This is a special case of customer gifts. Indeed, the deductibility is identical (50%) but the VAT on tobacco or spirits (> 22° of alcohol) is on the other hand not recoverable, even if the gift is less than €50 exclusive of VAT.

VAT is recoverable, however, if the item is intended for resale, forms part of a service (meal), is to be offered to customers or used as a tasting sample. In these cases, it's best to keep a record to justify yourself in the event of an inspection.

💡 Note that wine, champagne or port are not considered spirits.

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