The Decree on the exclusion of VAT deduction (‘BUA’) excludes the deduction of VAT on business gifts and employee benefits if these are made available by the entrepreneur free of charge or below cost price. There is a threshold amount of € 227 per beneficiary. If the total acquisition or production costs (the cost price) of the provisions are less than € 227 (excluding VAT) per year per beneficiary, no BUA correction needs to be made. This is a fatal threshold: if the threshold is exceeded, the input tax on the benefits in kind within the threshold amount is also not deductible.
Source Meijburg
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