Lesson 4. Promotional Gifts and Samples
In order to develop good relations with partners or improve business activities, companies gift various goods for free.
Keep in mind the tax exemptions described in both the Value-added and Income Tax Acts.
The Income Tax Act allows a tax exemption of up to 10 euros, excluding value-added tax, for goods and services paid for advertising purposes.
Value-added tax act allows:
Companies can make promotional gifts the taxable value of which does not exceed 10 euros excluding value-added tax;
Samples of goods not intended for sale may be given away for free in the interests of entrepreneurial activity.
Sources:
https://www.riigiteataja.ee/en/eli/530012014003/
https://www.riigiteataja.ee/en/eli/527022014003/
Business guide for e-Residents
https://www.emta.ee/
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