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V1958-24 ·17 September 2024 ·consulta-vinculante Medium impact
Tax

Customer samples and hospitality expenses are deductible for Corporation Tax subject to a 1% turnover limit

A canning company has requested clarification regarding the deductibility of samples and gifts for Corporation Tax purposes, as well as their VAT treatment. The DGT has ruled that these expenses are deductible for Corporation Tax subject to specific limits, and that the free distribution of own products constitutes self-consumption operations subject to VAT.

In 6 key points

How it affects those involved

Companies must ensure that hospitality and sample expenses do not exceed 1% of their turnover to remain fully deductible for Corporation Tax, and must correctly account for VAT on the self-consumption of their own goods.

Lifecycle

2024-09-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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