Supply and consideration 鈥� business gifts and samples (deemed supply)
Value Added Tax
Guidance
This guidance note examines the VAT rules around business gifts and samples. In particular, it looks at when a 鈥榙eemed supply鈥� 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 鈥� deemed and self-supplies guidance note and for an overview of supply and consideration more broadly, see the Supply and consideration 鈥� 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).
Basics of gifts and samples
It is not uncommon for gifts to be given away by businesses but when they are, it is essential that the VAT implications are considered. Because no money changes hands, it is easy to miss (or fail
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