Definition of gifts of small value

Pursuant to Art. 7 sec. 4 of the VAT Act, gifts of small value are understood as goods transferred by the entrepreneur to one person:

• with a total value not exceeding PLN 100 in the tax year, if the taxpayer keeps records that allow for the identification of these persons,
• the transfer of which has not been included in the records, if the unit purchase price of the goods (without tax), and if there is no purchase price, the unit cost of manufacture, determined at the time of handing over the goods, do not exceed PLN 10.

Thus, only gifts with a value of up to PLN 10 are not subject to any registration. However, it should be noted that the same person should not receive a total of gifts worth more than PLN 10 throughout the year. Here, the value is calculated in aggregate from the beginning to the end of the year.

In the case of gifts with a value between PLN 10 and PLN 100, it is necessary to record the people to whom the gifts are given. The regulations, however, do not explicitly state how such records should look like. Therefore, it can be assumed that it will be necessary to have the following recipient data:

• company name,
• first name and last name,
• the value of the gift given.

You can also enter the tax identification number, thanks to which it will be possible to uniquely identify the recipient of the gift.

Pursuant to Art. 7 sec. 2 points 3 of the VAT Act, the transfer of small-value gifts is not taxable if the transfer is for purposes related to the taxpayer's business activity.