Tax exemption for the provision of wine products
From November 16, 2023, the provision of bottled wine or wine products*** purchased directly from the winery** with protected designation of origin or protected geographical indication is tax-exempt* if it is provided
- within the framework of hospitality for both representational and non-representational purposes,
- as a business gift,
- or as a low-value gift.
In such cases, no personal income tax or social contribution tax must be paid on the provision of wine products.
The provision is not tax-exempt if the beneficiary acquires the product from traders (for example: wine houses, retail and wholesale stores, store chains, shops specializing in the sale of wine products).
The new regulation specifies in which cases – considered certain specified benefits by law – the provision of wine products is exempt from tax payment obligations. The concept and content of these benefits, including value limits, remain unchanged, and the tax-exempt wine product and its value count towards them. Therefore, a low-value gift can still be given once a year as a certain specified benefit, not exceeding 10 percent of the minimum wage, with the value attributable to the wine product being tax-exempt.
- Based on the favorable rules, at year-end gifting, the employer can provide employees with a low-value gift (if no low-value gift was previously given to the individual in the tax year), and
- companies can provide their business partners with wine products as business gifts in accordance with government decree rules without incurring tax payment obligations.
* According to Government Decree 451/2023 (X. 4.) on the taxation of certain benefits to be applied during the state of emergency (hereinafter: government decree).
** According to Section 9 (1) of Act CLXIII of 2020 on Viticulture and Winemaking, a licensed winery initiating marketing.
*** According to Section 1, point 3 of Act CLXIII of 2020 on Viticulture and Winemaking, wine products include, in particular, wine, sparkling wine, semi-sparkling wine, sparkling wine, and liqueur wine.
It's time to toast!
Product portfolio and orders: Etyeki Kúria webshop Custom offer requests for our bottled items: webshop@kuriashop.com
Source: nav.gov.hu
