Purchasing promotional products is not only an investment in your brand and client relationships, but when done correctly, it is also a great way to lower your tax base in the Czech Republic. However, for the Czech Tax Office to recognize your invoice as a tax-deductible expense, you must follow strict rules. What are they in 2026? We explain Section 25(1)(t) of the Czech Income Tax Act clearly and simply.
3 Basic Rules for Tax Deductibility in the Czech Republic
For a promotional item to be considered a tax-deductible expense (and not fall under non-deductible "representation costs"), it must meet three main conditions simultaneously. You cannot pick just one; the Tax Office assesses them as a whole.
1. The Item Must Feature the Company Name or Logo
The Czech law requires the item to feature the company name, its logo, or a trademark. Another option is the name of the promoted goods or services. This is why plain, unbranded items are difficult to justify during a tax audit. That is why at TAEDA, we offer free graphic design preparation for all products, ensuring your logo is placed correctly and visibly.
2. Price Up to 500 CZK without VAT per Piece
This is the magic threshold. The acquisition cost of one piece of a promotional item must not exceed 500 CZK excluding VAT. Warning! This amount includes not only the product itself but also all related acquisition costs – such as the printing cost, shipping, and packaging, calculated per single item.
3. The Item Must Not Be Subject to Excise Duty
Simply put: You cannot deduct alcohol (except still wine) or cigarettes from your taxes. The law makes an exception only for still wine (not sparkling wine), which can be claimed if it meets the previous conditions (price up to 500 CZK and bearing a logo).
What About the Right to Deduct VAT?
If your Czech company is a VAT payer and you purchase promotional products for business purposes (to give away to clients to support sales), you have the full right to deduct the input VAT. Again, the condition is that the value of the gift must not exceed 500 CZK (excluding VAT). Distributing such items is then not subject to output VAT obligations – it is considered a standard business expense.
Tips for Tax-Deductible Gifts That Clients Will Love
Are you looking for inspiration for items that comfortably fit within the limit, are easy to brand, and will actually be useful to your clients? Here are our favorites for 2026:
- Quality Writing Instruments: Forget cheap plastics. Metal pens with custom printing or laser engraving look premium and easily fit well below the 100 CZK/piece mark.
- Office Accessories: Custom printed notebooks and notepads are an ideal and practical gift for B2B partners.
- Bags and Lanyards: Perfect for conferences and trade shows, where the price per piece is only a few dozen crowns.
Do You Need Promotional Products with a Custom Invoice?
We will handle the complete realization from design to delivery. Everything will be perfectly and transparently invoiced for your accounting department.
Inquire About Promotional ProductsFrequently Asked Questions (FAQ)
What if the promotional item costs 550 CZK without VAT?
In this case, it does not meet the legal limit. The entire amount (not just the 50 CZK over the limit) becomes a non-tax-deductible representation expense. You cannot deduct any of it.
Can gifts for employees be included in tax expenses?
No. The rules for tax deductibility (500 CZK limit + logo) apply to gifts provided for promotional purposes (to clients, business partners). Gifts for employees (for Christmas, anniversaries) are non-tax-deductible expenses for the company and are usually subject to income tax on the employee's side.
Do I need to have the printing cost listed separately on the invoice?
It is not required, but we strongly recommend it. If your invoice states "Pen with logo including printing and shipping at 80 CZK/pcs," it is completely transparent for the tax authority, and they can immediately see that you fit within the 500 CZK limit.
Disclaimer: This article is for informational purposes only and does not replace professional tax or accounting advice. Always consult your accountant or tax advisor to address your company's specific situation in the Czech Republic.