Capital
Prague
Currency
Czech koruna
Languages
Czech
Population size
10.7M
Average Monthly Salary
€1600
EU
Since 2004
Region
Central-Europe
Gift Giving Norms
Corporate gifts often given at year-end
Major Corporate Gift Days
Christmas, Easter
Customs Complexity
Low
VAT - Standard Rate
21%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Under Czech law, any non-cash benefits provided to employees may be seen as taxable compensation unless they clearly serve a work-related purpose. The Financial Administration of the Czech Republic (Finanční správa) sets the rules on whether items count as employee benefits or legitimate business costs.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Tools
Items integral to an employee’s role (e.g., branded uniforms, safety gear, or certain tech accessories) typically do not count as taxable benefits.
Branded Office Supplies
Simple items like T-shirts, notebooks, or mugs bearing a visible company logo are often treated as workplace necessities or promotional accessories, especially if distributed uniformly.
Potentially Taxable Benefits
High-Value or Personal Items
Electronics, luxury apparel, or goods of purely personal use might be reclassified as income in kind, requiring the employer to pay associated wage taxes and social contributions.
Frequent Gifting
Repetitive gifts, even of lower value, may raise concerns of disguised salary. Seek guidance if planning multiple merchandise distributions yearly.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Business gifts are often tax-deductible if justified as marketing or promotional expenses. However, lavish or repeated gifts without clear business rationale risk scrutiny.
Compliance & Anti-Corruption
Czech anti-corruption measures focus especially on public officials. Keep gift values moderate and maintain documentation if distributing items in regulated sectors.
1.3 Marketing Merch
Promotional Merchandise
Branded products distributed at trade fairs or public events (e.g., pens, tote bags) can be recorded as marketing/advertising expenses. Hold on to invoices and distribution details for potential audits.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods from non-EU origins may incur customs duties if they surpass certain thresholds (often €150), plus Czech VAT (21%) on the total of (value + shipping + duties).
Documentation
Accurate commercial invoices, HS codes, and product descriptions streamline customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers all import fees, easing delivery for the recipient.
Delivered At Place (DAP)
The recipient is billed for duties and VAT upon arrival, which can delay handover if unexpected.
2.4 With Monday Merch
Our warehouse in Rotterdam (the Netherlands) can ship to Czech addresses duty-free. We also advise on any necessary VAT processes, helping you remain tax compliant in cross-border transactions.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Is corporate merch for employees taxed here?
Only if it’s a personal benefit; necessary uniforms are non-taxable.
B2B gift deductibility?
Yes, up to reasonable costs, with documentation proving promotional aim.
Local gifting culture?
Czechs favour functional, modest gifts rather than anything overly showy.
