- The self-employed will be able to deduct Christmas baskets, dinners and gift cards in 2026
- The self-employed can also deduct the lottery, congratulations and small gifts to clients
The self-employed will be able to deduct several of the taxes again in 2026. usual Christmas expenseslike the baskets for employees, company dinners, lottery tickets or small gifts for clients, although not all of them allow the same taxes to be reduced.
December once again raises the disbursements of thousands of small businesses, which take advantage of these dates to thank their staff for their work and take care of their relationships with clients and suppliers. The regulations maintain important differences between VAT, Personal Income Tax and Corporate Tax: some expenses can only be deducted before Hacienda on direct taxes, while others also allow the recovery of input VAT if they meet certain requirements.
This year, furthermore, the Central Economic-Administrative Court (TEAC) has reiterated that VAT on Christmas baskets with food and drinks is not deductible, not even when they are delivered to workers or clients. Therefore, it is advisable to know which six expenses the self-employed can deduct, what conditions the Treasury requires and what limits they must respect to avoid problems during a verification.
The self-employed will be able to deduct Christmas baskets, dinners and gift cards in 2026
Christmas baskets continue to be one of the most common gifts for workers. However, its tax treatment changes depending on the tax. In VAT, Article 96 of the Tax Law excludes the deduction of goods intended for services to employees, clients or third parties. In June 2026, TEAC reconfirmed this criterion for baskets consisting of food and beverages.
In Personal Income Tax and CompaniesHowever, they can be considered a deductible expense when the business proves that it responds to a custom maintained over time. The regulations do not establish a specific number of years for demonstrate that habitualityso the Treasury analyzes each case.
“The expenses that the self-employed person bears for the Christmas baskets that he gives to his employees They are considered deductible as long as it can be demonstrated that you have been doing them for years.. Of course, they are not just any expense, they should be considered remuneration in kind, so they would be counted as an expense and then charged to the employee’s income,” Pablo G. Vázquez, from GVA Asesores, a tax expert specialized in deductions, explained in previous statements to this newspaper.
Business dinners and gift cards can also be tax deductible
Las Christmas lunches and dinners with workers can be deducted in Personal Income Tax and Companies if they are justified and are part of the uses and customs of the business. In the case of meetings with clients and suppliers, service expenses are subject to the limit of the 1% of turnover annual.
He VAT on these celebrations, as a general rule, is not deductible when it comes to attention to employees or clients. The Tax Agency also contemplates specific rules for hospitality and restaurant services, so it is necessary to pay attention to the specific nature of the expense and the requirements of direct taxes.
Gift cards that are given to workers can also be deducted in Personal Income Tax and Corporate Tax if there is such a regularity and it is documented. However, they have the consideration of remuneration in kind: The employee must include its value in his Income Tax return and the company will have to give it the corresponding tax treatment. VAT also cannot be deducted for the mere fact of purchasing these cards to give them as gifts.
The self-employed can also deduct the lottery, congratulations and small gifts to clients
Los tenths of the Christmas Lottery that some businesses give to their customers constitute another expense that can be deducted, although with conditions. The General Directorate of Taxes clarified in the binding consultation V2490-17 that the purchase of a lottery intended as a gift to clients can be considered a tax-deductible expense in personal income tax if it is justified by invoice and respects the requirements of commercial services.
Specifically, it applies the limit of 1% of the net amount of the turnover for the year. This expense does not allow the input VAT to be deducted. Its treatment in Companies must be analyzed in accordance with the general rules of expenses for customer service.
Greeting cards and small promotional gifts can deduct VAT
Las christmas cards and small gifts for clients can have a more favorable treatment when they fulfill an advertising function. To do this, the self-employed person must be able to demonstrate their relationship with the activity and that they serve to promote the business or maintain commercial relationships.
It is important that the name or brand of the business appears visibly on advertising objects. In these cases, the VAT regulations contemplate an exception for objects of low valuewith a limit of 200 euros per recipient and year. If the conditions are met, these expenses can be deducted from both VAT and personal income tax or corporation tax.
The three requirements that the Treasury requires to accept Christmas expenses
Beyond the type of gift or celebration, self-employed workers must comply with the general deductibility conditions. First of all, the expense must be justified, preferably by means of a complete invoice. It must also be related to the economic activity and be correctly recorded in the record books or business accounting.
Finally, when the regulations require habituality, the Self-employed person must keep documentation from previous years that allows us to demonstrate that it is not a one-time gift or a liberality outside the company’s customs.
As Rubén Gimeno, technical secretary of the Registry of Tax Advisory Economists (REAF), explained, “we do not know how many years are necessary for this requirement to be met. The Tax Agency would decide that by analyzing each assumption.” Therefore, keeping invoices from previous years and justifying the destination of each expense is especially important for the Treasury to accept the deduction.
Source: www.autonomosyemprendedor.es
