Starting from January 1, 2021, gifts for employees up to the amount of PLN 20 net value (unit purchase price of goods / unit cost of production) are not subject to VAT and you do not need to keep records for such transactions.

If the employer wants to pay a gift above PLN 20 and not more than PLN 100 net value and to avoid the output VAT tax due, it is still possible.

In this case, however, the employer should remember about below facts:
✔️ keeping detailed records, which will clearly show who received a gift and for what amount;
✔️ there is a limit of PLN 100 / person during the tax year.
If the gift exceeds PLN 100, there will be VAT on the item that did not fit into this amount.

For CIT, the purchase and handing over of small gifts to an employee can be claimed as operating costs for the company.

Authors: Dajana Skutela, Monika Bień