Taxation of Corporate Christmas Hampers
Are Christmas hampers tax-deductible? Is there tax for the employee? What about VAT? A practical guide to the taxation of corporate Christmas hampers: Corporation Tax, IRPF (Spanish personal income tax) and VAT, with a summary table.
Published on July 29, 2026
Deductibility in Corporation Tax
Christmas hampers for employees are deductible in Corporation Tax when they align with the company's customs and practices — that is, when there is a tradition of giving them (repetition in previous years is the usual proof). In this case, they are considered a personnel expense and are not subject to the limit for client gifts.
Gifts to clients and suppliers follow a different rule: they are considered 'client or supplier gifts' and their deduction is limited to 1% of the net turnover for the year (art. 15.e of the Corporation Tax Law).
In both cases, it's advisable to document the expense well: detailed invoice, list of recipients and, for employees, evidence that it is a regular company practice. With a gift platform like Pekata, you receive a single invoice with the complete campaign details.
IRPF for Employees: Benefit in Kind
For the employee, the Christmas hamper is a benefit in kind: the company must value it, include it in the payroll, and make the corresponding tax payment. This is the consistent stance of the Dirección General de Tributos, even if the hamper is a company tradition.
In practice, most companies cover the tax payment so that the gift doesn't cost the employee anything. It's a small and predictable additional cost that should be included when budgeting the campaign.
What About VAT?
The VAT on Christmas hampers is generally not deductible: the VAT Law excludes the deduction of VAT on goods intended for client, employee, or third-party gifts (art. 96 LIVA). Budget the hampers with VAT as the final cost.
How to Account for It: Account 649 and Typical Entry
The hamper for employees is recorded as a personnel expense in account 649 'Other Social Expenses', not as a client gift. Since the VAT paid is not deductible, it is included in the expense amount. An example with numbers: 40 employees with a hamper of €60 each (including VAT) amounts to €2,400 charged to account 649 with a credit to suppliers or banks. Gifts to clients, however, are recorded as client gifts (usually in account 627), with their 1% limit in Corporation Tax.
The second point not to forget is the payment on account of IRPF (Spanish personal income tax): it is declared alongside work withholdings in the quarterly model 111 and in the annual summary model 190, and the valuation must appear on the December payslip. Pekata's single invoice, with the breakdown per employee, is the documentary support your accounting firm needs for this entry — no need to reconcile individual receipts.
Summary Table
| Concept | Hamper for Employees | Gift for Clients |
|---|---|---|
| Corporation Tax | Deductible if it's a company custom | Deductible with a 1% turnover limit |
| IRPF / Withholding | Benefit in kind: payroll + tax payment | Not applicable to the recipient |
| VAT Paid | Not deductible | Not deductible |
Information reviewed in July 2026. This is not tax advice: confirm your specific case with your advisor.
Frequently asked questions
Is the Christmas hamper deductible the first year it's given?
This is the most delicate scenario: if there is no prior custom, Hacienda may consider it a non-deductible gift. Many companies document it as an approved remuneration policy (internal communication, minutes) to strengthen deductibility from the first year. Discuss it with your advisor.
Does the hamper need to appear on the employee's payroll?
Yes. As a benefit in kind, it must be valued and included in the payroll with its tax payment. The company can cover this tax payment so the employee doesn't incur any cost.
Do prizes from a Christmas raffle among employees have the same tax treatment?
Yes: what an employee receives from their company due to their employment is considered employment income, even if it comes from an internal raffle. The treatment is the same as for the hamper.
What if I give a gift card instead of a hamper?
The treatment in IRPF is equivalent (benefit in kind), but you lose the experiential aspect of the gift. We have a complete comparison between gift cards and Christmas hampers.
In which accounting account is the Christmas hamper recorded?
In account 649 'Other social expenses', as a personnel expense, with non-deductible VAT included in the expense. Gifts to clients are recorded as client entertainment (usually account 627) and are subject to the 1% turnover limit.