- CHF 500 Threshold for VAT-Free Gifts Employers can give non-cash gifts (e.g. Christmas baskets, wine, event tickets) up to CHF 500 per employee per year without triggering VAT or income tax consequences. These are considered trivial fringe benefits and are not treated as salary or taxable supplies.
- VAT Deduction Allowed for Business-Related Gifts If the gift serves a legitimate business purpose—such as employee motivation or retention—input VAT is deductible. However, the gift must remain within the CHF 500 threshold and not be part of a performance-based reward system.
- Excess Value Triggers Tax and VAT Obligations If the total value of gifts exceeds CHF 500, the excess must be declared on the employee’s salary certificate and may be subject to social security contributions and VAT. Employers should track gift values carefully and document their purpose to ensure compliance.
Sources
