{"id":11211,"date":"2025-03-07T15:18:08","date_gmt":"2025-03-07T13:18:08","guid":{"rendered":"https:\/\/gls-law.company\/?p=11211"},"modified":"2025-03-07T15:18:10","modified_gmt":"2025-03-07T13:18:10","slug":"free-distribution-of-products-for-marketing-purposes-is-vat-applicable","status":"publish","type":"post","link":"https:\/\/gls-law.company\/en\/free-distribution-of-products-for-marketing-purposes-is-vat-applicable\/","title":{"rendered":"Free Distribution of Products for Marketing Purposes: Is VAT Applicable?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Marketing campaigns are an effective way to attract customers, but from a tax perspective, free product distribution may lead to additional VAT charges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udd39 <strong>Tax Authority\u2019s Position<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Free distribution = VAT based on the minimum taxable value<\/strong><br>If a company provides products to customers for free, tax authorities consider this a supply of goods, and VAT must be calculated based on either the purchase cost or the usual price (if the product is self-manufactured).<\/li>\n\n\n\n<li><strong>If marketing products are included in the cost of the main product \u2013 VAT is not charged<\/strong><br>If a free product is part of a service package or another product, meaning its cost is included in the overall pricing, then no additional VAT is applied.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udd39 <strong>How Can Businesses Optimize Expenses?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>Ways to Reduce Tax Risks:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>Include marketing products in the cost of the main product<\/strong> \u2013 for example, if a customer buys a phone and receives a free case, the case\u2019s cost can be incorporated into the phone\u2019s overall price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>Use agency contracts<\/strong> \u2013 work with marketing agencies that organize promotions and transfer products to them under specific conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>Properly document transactions<\/strong> \u2013 contracts should clearly state that promotional products are part of a marketing campaign, not a separate supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\ude80 <strong>Marketing without tax risks is possible!<\/strong> Need advice? We\u2019ll help you find the best solution for your business!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Marketing campaigns are an effective way to attract customers, but from a tax perspective, free product distribution may lead to additional VAT charges. \ud83d\udd39 Tax Authority\u2019s Position \ud83d\udd39 How Can Businesses Optimize Expenses? \ud83d\udca1 Ways to Reduce Tax Risks: \u2714\ufe0f Include marketing products in the cost of the main product \u2013 for example, if a [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":11169,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-11211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-taxes"],"_links":{"self":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/comments?post=11211"}],"version-history":[{"count":1,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11211\/revisions"}],"predecessor-version":[{"id":11212,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11211\/revisions\/11212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media\/11169"}],"wp:attachment":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media?parent=11211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/categories?post=11211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/tags?post=11211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}