Why samples and gifts require careful accounting
Distributing free samples, promotional gifts, or demonstration products is a common practice among Swiss SMEs in retail, craft manufacturing, and B2B services. From a commercial perspective, these are marketing investments; from a tax and accounting perspective, however, every free delivery can affect input tax deduction, constitute own use under Art. 31 of the VAT Act, or generate inventory movements that must be tracked precisely.
The Federal Act on Value Added Tax (VAT Act, RS 641.20) subjects supplies made for consideration to tax (Art. 18 VAT Act). Free deliveries, in the absence of consideration, as a rule do not generate output VAT; however, if there is no business purpose, Art. 31 of the VAT Act (own use) requires correction of previously deducted input tax. Approximate recording—for example, booking everything as simple "advertising expense" without verifying the promotional purpose or correcting input tax where necessary—exposes the company to adjustments during audits and distorts operating margin.
This guide explains the rules applicable in 2026, with concrete examples of accounting compliant with Swiss accounting standards (Swiss GAAP FER), designed for business owners, administrative managers, and fiduciary firms using Accountex to manage VAT, inventory, and marketing costs.
Samples, gifts, and promotional materials: operational definitions
Before recording a transaction, it is essential to classify correctly what is being delivered free of charge. The FTA and administrative case law operate with distinct categories:
Samples (Muster)
Reduced portions or units of a product that allow the recipient to assess its nature, quality, or characteristics before purchase. Examples: cosmetic sample vial, building material tile, food tasting portion at point of sale.
If the sample is intended to generate taxable or tax-exempt transactions, business purpose is presumed under Art. 31 para. 2 lit. c of the VAT Act; no output VAT arises and input tax generally remains fully deductible.
Promotional gifts (Werbegeschenke)
Goods delivered free of charge to customers, partners, or visitors to promote the company's image or strengthen a business relationship, without the purpose of product evaluation. Examples: branded pens, bottles of wine, gift sets, tech gadgets.
Advertising gifts intended to generate taxable or tax-exempt transactions also fall within the presumption of business purpose under Art. 31 para. 2 lit. c of the VAT Act, regardless of value.
Free deliveries relevant for VAT purposes
When a standard product is delivered in full and free of charge without promotional or evaluation purpose, own use under Art. 31 of the VAT Act may apply, with an obligation to correct input tax. Distribution of products at a symbolic price (CHF 1) also constitutes consideration and may make the transaction taxable under Art. 18 of the VAT Act. On import, separate customs thresholds also apply (e.g. Art. 27 of the VAT Ordinance for samples up to CHF 100 per shipment).
VAT treatment: thresholds, rates, and input tax correction
Since VAT applies to supplies made for consideration (Art. 18 VAT Act), free deliveries as a rule do not generate output tax. The relevant tax effect concerns input tax deduction and possible own use (Art. 31 VAT Act). Below are the principles applicable to SMEs using the effective method or the flat-rate or lump-sum rate method (Art. 37 VAT Act, where permitted for the activity category):
| Type of free delivery | Threshold / criterion | VAT treatment | Input tax |
|---|---|---|---|
| Goods sample | Intended to generate taxable or tax-exempt transactions | No output VAT (no consideration) | Deductible; no correction (business purpose presumed) |
| Promotional gift (advertising gift) | Documented promotional purpose | No output VAT | Deductible, without correction (Art. 31 para. 2 lit. c VAT Act) |
| Ordinary gift within threshold | Max. CHF 500 per recipient per calendar year | No output VAT | Deductible; no correction (business purpose presumed) |
| Gift without business purpose | Over CHF 500 per recipient/year or without business purpose | No output VAT; own use | Input tax correction (Art. 31 VAT Act) |
| Finished product transferred free of charge | Without promotional or evaluation purpose | No output VAT; own use | Full or partial input tax correction (Art. 31 para. 3 VAT Act) |
| External promotional material | Purchased from third parties (printing, gadgets) | Marketing expense; no output VAT | Deductible; correction only in case of own use |
The VAT rates in force since 1 January 2024 remain unchanged in 2026: standard rate 8.1%, reduced rate 2.6%, special rate for the hospitality sector 3.8%. Input tax correction for own use corresponds to the tax originally deducted on the goods or production costs, possibly reduced based on the current value of the goods under Art. 31 para. 3 of the VAT Act.
Input tax deduction and correction
Input tax on samples and gifts is deductible only if the goods or services are used for taxable supplies (Art. 28 et seq. VAT Act). When goods purchased with deducted VAT are subsequently transferred free of charge without business purpose, the company must correct the deduction under Art. 31 of the VAT Act (own use): the amount to be repaid corresponds to the input tax originally deducted, related to the current value of the goods transferred where applicable.
For self-produced goods, the correction relates to input tax deducted on purchase and production costs (raw materials, direct labour, allocable overhead). No output tax arises on the free delivery; the effect must be recorded in the VAT return as input tax correction in the reporting period in which the delivery takes place.
Example: promotional gift
A Ticino-based food products company gives a buyer at a retail chain packages worth CHF 80 (production cost) for promotional purposes. Business purpose is presumed. Input tax on raw materials and packaging remains fully deductible; the CHF 80 cost is booked as marketing expense, without output VAT.
Example: gift without business purpose
The same company delivers a gift set worth CHF 600 (cost) to a private individual with no business relationship, exceeding CHF 500 per recipient for the year. This constitutes own use: it must correct input tax of CHF 48.60 originally deducted on materials (CHF 600 × 8.1%), without charging output VAT. The net cost of CHF 600 remains tax-deductible as marketing expense, subject to applicable income tax limits.
Accounting compliant with Swiss standards
In ordinary SME accounting, samples and gifts affect the income statement and, if withdrawn from inventory, the balance sheet. The typical chart of accounts (Swiss SME accounting) provides for the following entries:
| Transaction | Debit account | Credit account | Amount |
|---|---|---|---|
| Purchase of external promotional material | 6200 Werbeaufwand / 1170 Warenvorrat | 2000 Kreditoren | Cost + deductible VAT on 1170 |
| Sample withdrawal from inventory (business purpose) | 6200 Werbeaufwand | 1200 Handelswaren / 3400 Fertigfabrikate | Production cost or inventory value |
| Own use (input tax correction) | 6200 Werbeaufwand + 1171 Vorsteuerkorrektur | 1200/3400 + 1170 Vorsteuer | Cost + repayment of input tax |
| In-house sample production | 6200 Werbeaufwand | 3400 Fertigfabrikate / 9000 Produktion interna | Costs allocated to marketing department |
The cost of samples and gifts generally falls under advertising and representation expenses, deductible for income tax and profit tax purposes if incurred in the company's interest and adequately documented. Note: gifts to private individuals with no business relationship may be challenged as non-deductible expenses or subject to secondary taxation (benefits in kind), especially if of high value.
Inventory, stocktaking, and valuation
SMEs that produce or sell physical goods must track sample withdrawals separately from ordinary sales. At year-end, promotional material still in inventory must be included at purchase or production cost, not at selling price. Samples already distributed are no longer part of stock: their cost is transferred to the income statement in the period of delivery.
A common error is failing to adjust physical inventory after trade fairs, tastings, or promotional mailings. This inflates inventory value and distorts the gross margin indicator. Periodic inventory counts—even quarterly for high-turnover promotional categories—reduce the risk of material discrepancies at year-end.
Documentation and traceability for FTA audits
In a tax audit, the FTA requires proof of recipient, value, promotional purpose, and compliance with the annual threshold of CHF 500 per recipient where relevant. Documents to retain until expiry of the tax claim (generally 10 years, Art. 70 VAT Act):
- 1.Internal withdrawal slips or delivery notes indicating "Goods sample — business purpose presumed" or "Promotional gift — value CHF XX".
- 2.Gift register by recipient with name, company, date, description of goods, and cumulative annual value.
- 3.Production cost calculation for self-produced products, with documented allocation of raw materials and labour.
- 4.VAT returns showing input tax corrections for own use (Art. 31 VAT Act) in the correct period.
- 5.Purchase invoices for external promotional material, with clear allocation to the marketing cost centre.
Sector and distribution channel specifics
Retail and large-scale distribution
In-store tastings and counter sampling require daily protocols with quantities distributed and unit cost. For fresh food products, also consider cantonal hygiene rules in addition to VAT.
B2B industry
Technical samples sent to foreign customers may qualify as tax-exempt transactions (export) if documented with proof of transport abroad. Gifts to domestic customers follow ordinary VAT rules.
Services and events
Welcome kits at trade fairs, conferences, or open days must be valued individually per participant. If the cumulative value exceeds CHF 500 per person and does not fall within the advertising gift presumption, verify possible own use and correct input tax.
Operational checklist for SMEs
- ✓Define an internal policy distinguishing goods samples, advertising gifts, and ordinary gifts, with a threshold of CHF 500 per recipient/year.
- ✓Keep an annual register by recipient with cumulative value of gifts and presents.
- ✓Configure a "Marketing / Sampling" cost centre in accounting software linked to account 6200.
- ✓Automate inventory adjustment at the time of sample withdrawal, not only at month-end.
- ✓Review the VAT return quarterly for input tax corrections due to own use (Art. 31 VAT Act).
- ✓Agree with your fiduciary on the tax deductibility of gifts to non-customer stakeholders (sponsors, influencers).
- ✓At year-end, reconcile physical and accounting promotional stock before closing.
Managing samples and gifts with Accountex
Accountex allows you to link inventory withdrawals to promotional reasons, automatically generating accounting entries to marketing accounts and adjusting stock in real time. The integrated VAT module flags deliveries exceeding the CHF 500 threshold per recipient or not falling within the business purpose presumption, facilitating input tax correction for own use in the correct reporting period.
For fiduciary firms, the multi-client dashboard offers a consolidated view of sampling costs by financial year, simplifying preparation of the quarterly VAT return and documentation to retain in anticipation of a possible FTA audit. Structured management from the outset avoids costly adjustments and ensures marketing margins calculated on reliable data.