Christmas hampers and Dutch tax: the work-related costs scheme (WKR) in 2026

In the Netherlands a Christmas hamper for staff is, for tax purposes, wages in kind. Yet in most cases neither employee nor employer pays tax on it, thanks to the work-related costs scheme (werkkostenregeling, WKR). Here is how it works in 2026, when tax does apply and how VAT works.

Short answer: designate the hamper as final levy wages and make sure it fits within your tax-free allowance (2026: 2.00% of the wage bill up to €400,000 and 1.18% above). It is then tax-free for everyone. If you exceed the allowance, the employer pays an 80% final levy on the excess.

This article is general information, not tax advice. Check with your payroll administrator or accountant if in doubt.

How the tax-free allowance works

Under the WKR an employer may spend part of the total taxable wage bill on staff benefits without tax: the vrije ruimte. A Christmas hamper is a typical example, and the Dutch tax authority (Belastingdienst) uses it as one.

Example 2026: a company with a taxable wage bill of €600,000 has an allowance of 2% × €400,000 + 1.18% × €200,000 = €10,360. Giving 40 employees a €59 hamper uses €2,360 of it (plus any other benefits during the year).

When does tax apply?

If total benefits for the year exceed the allowance, the employer pays an 80% final levy on the excess. Employees are not affected; the cost is for the employer.

How much may a hamper cost?

There is no fixed maximum. A benefit must be customary: it may not deviate by more than 30% from what is normal in comparable situations. The Belastingdienst assumes it is customary as long as everything designated for an employee in a year stays below €2,400 per person. A €39 to €100 hamper is well below that for almost every employee.

In practice employers spend around €100 per employee on average. A KVK survey of entrepreneurs (2023) found that almost 60% of SMEs give a Christmas hamper every year, and almost half spend between €50 and €100.

VAT on staff hampers

You may reclaim the VAT on a staff Christmas hamper as long as staff benefits and gifts per employee stay below €227 excluding VAT per financial year. Above that, VAT is not deductible. The Belastingdienst gives the example of a €75 hamper with deductible VAT.

Gifts for clients

A hamper for clients or business relations is not wages but a corporate gift (relatiegeschenk):

• VAT: the same threshold of €227 excluding VAT per recipient per financial year applies, unless the recipient could deduct at least 30% of the VAT themselves.
• Profit tax: corporate gifts are partly deductible costs. For 2026 the Belastingdienst mentions a threshold of €5,700, or deducting 80% (income tax) or 73.5% (corporate tax). Let your accountant decide what suits your company.

See our corporate gifts.

HR checklist

1. Set the budget per employee and check it fits in the remaining allowance.
2. Designate the hamper as final levy wages in payroll.
3. Keep the invoice (company name, VAT itemised) for VAT recovery.
4. Think of colleagues with dietary needs: choose a supplier with an equivalent version.
5. Order in time: most orders are placed in late November and early December.

Looking for a hamper people actually eat? See our Spanish Christmas hampers for staff, from €39 per hamper excluding VAT.

Sources

• Belastingdienst: work-related costs scheme (Dutch)
• Rijksoverheid: WKR (Dutch)
• Belastingdienst knowledge groups: customary-ness threshold (Dutch)
• Belastingdienst: VAT threshold for staff benefits and gifts (Dutch)
• Belastingdienst: 2026 threshold for partly deductible costs (Dutch)

Frequently asked questions

Is a Christmas hamper tax-free for employees in the Netherlands? +

Yes, if the employer designates it as final levy wages and it fits within the tax-free allowance (vrije ruimte) of the work-related costs scheme. Neither the employee nor the employer then pays tax on it.

How large is the tax-free allowance in 2026? +

In 2026 the vrije ruimte is 2.00% of the taxable wage bill up to €400,000 and 1.18% of the part above. If the employer exceeds it, an 80% final levy applies to the excess.

How much may a Christmas hamper cost? +

There is no legal maximum for a Christmas hamper. It must fit within the allowance and be customary. The Dutch tax authority assumes that benefits up to €2,400 per employee per year are customary.

Can I reclaim VAT on a Christmas hamper? +

Yes, as long as staff benefits and gifts per employee do not exceed €227 excluding VAT in a financial year. The tax authority itself gives the example of a €75 Christmas hamper with deductible VAT.