½Û×ÓÊÓƵ

This guidance note examines the VAT rules around business gifts and samples. In particular, it looks at when a ‘deemed supply’ will take place for VAT purposes despite the fact that no consideration (payment) has changed hands. It also touches on the VAT recovery position when gifts and samples are given away.

For an overview of deemed supplies generally, see the Supply and consideration ― deemed and self-supplies guidance note and for an overview of supply and consideration more broadly, see the Supply and consideration ― overview guidance note.

Detailed commentary on the legislation and case law surrounding business gifts and samples can be found in De Voil Indirect Tax Service V3.211 (gifts of goods and samples) and De Voil Indirect Tax Service V3.216 (gifts of services).