Value Added Tax Consolidation Act 2010 section 21

Supplies made free of charge

Section 21 provides that certain goods given away free of charge in the course of business are not treated as taxable supplies for VAT purposes.

• Self-supplies and intra-Community transfers of goods are normally deemed to be made for consideration and are therefore subject to VAT.
• A business gift costing €20 or less is not a taxable supply, provided it is not part of a series or succession of gifts to the same person.
• Industrial samples given free to actual or potential customers in reasonable quantities, in a form not ordinarily available for sale to the public, are also excluded.
• Where a gift exceeds the €20 threshold, it is treated as a taxable self-supply and VAT applies with no entitlement to deduction.