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Tobacco and spirits

Tax risk: 🔥🔥 | Deductibility: 50%

Written by Lionel ROSU

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

This is a special case of a client gift. Indeed, the deductibility is the same (50%) but the VAT on tobacco or spirits (> 22° alcohol) is not recoverable, even if the gift is below €50 excl. VAT.

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

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

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