Doctrine by topic · DGT Observatory

Customer Entertainment: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 16 rulings · 2015–2026

Current position

The acquisition of food and beverages does not allow for the deduction of IVA (Value Added Tax), unless they are goods intended exclusively to be the object of delivery or transfer of use for consideration by entrepreneurs dedicated to such operations. Expenses for customer entertainment, such as the rental of seats for loyalty purposes, are deductible in IS (Corporate Income Tax) if they meet the requirements of registration, accrual, justification, and the limit of 1% of the turnover. The connection to the activity must be proven through admitted means of evidence.

The DGT's position has moved from a general prohibition of IVA deduction in customer entertainment to establishing specific exceptions when there is consideration or a linked hospitality activity. In the field of IS, the doctrine remains constant regarding the deductibility of promotion and entertainment expenses, provided that legal limits and the correlation with income are respected.

Turning points

  1. V0242-17

    Distinguishes low-value gifts with promotional purposes from customer entertainment, excluding them from the 1% turnover limit.

  2. V1400-23

    Establishes that the transfer of material contractually linked to a purchase constitutes a transaction for consideration and not customer entertainment.

  3. V2295-24

    Specifies the exception to the prohibition of IVA deduction on food and beverages when these are the object of delivery or transfer for consideration.

Analysis based on 16 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V5050-26 22 Jun 2026

Rental seat costs for customer loyalty are deductible up to 1% of turnover

SG de Impuestos sobre las Personas Jurídicas
deducibilidadatenciones a clientescifra de negociosdevengofidelización LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V2295-24 31 Oct 2024

Food and drink IVA deductible for restaurants in supermarkets

SG de Impuestos sobre el Consumo
derecho a la deducciónatenciones a clientestransformación de bienesentrega a título onerosoempresario profesional LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.3
Affects CompanyExpat · Non-residentIndividual
V2350-21 18 Aug 2021

Self-maintenance expenses require electronic payment to be tax-deductible

SG de Impuestos sobre la Renta de las Personas Físicas
gastos de manutenciónatenciones a clientesmedios electrónicos de pagoestimación directajustificación de gastos LIRPF — Ley 35/2006 del IRPF art. 28LIRPF — Ley 35/2006 del IRPF art. 30.2.c
Affects CompanyExpat · Non-residentIndividual
V2490-17 4 Oct 2017

Lottery ticket expenses for client gifts are deductible up to 1% of turnover

SG de Impuestos sobre la Renta de las Personas Físicas
estimación directaatenciones a clientesgastos deduciblescifra de negociosrendimientos de actividades económicas LIRPF — Ley 35/2006 del IRPF art. 27.1LIRPF — Ley 35/2006 del IRPF art. 28.1
Affects CompanyExpat · Non-residentIndividual
V3545-15 17 Nov 2015

Promotional and customer loyalty expenses deductible under certain conditions

SG de Impuestos sobre las Personas Jurídicas
gasto deducibleatenciones a clientesfidelizaciónimputación por devengocorrelación de ingresos y gastos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.1
Affects CompanyExpat · Non-residentIndividual

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