Is the gift a tax deductible cost for the giver (provider)?

The purchase of a gift will constitute a tax cost, provided that the expenditure is incurred in order to generate income or to maintain or secure a source of income. In practice, this means that gifts should bear a company logo, of low value, and their delivery should be massively for advertising purposes (i.e. promoting the brand or products of the company). In addition, when input VAT on the purchase of gifts is not deductible, it is a tax deductible cost. In contrast, elegant and valuable gifts given to selected contractors and gift baskets in which we place branded sweets and alcohols are used to build or maintain good relationships and create a favorable image of the company, are representative and do not charge tax costs.