🔥 Employee Gift Cards: 7 Tax Tips for Business Owners

What are employee voucher cards?

Employee voucher cards are a tax-free benefit in kind (Sachbezug) of up to 50 euros per month. Companies can grant these vouchers to their staff as a bonus or additional benefit without incurring wage tax (Lohnsteuer) or social security contributions.

Difference between a benefit in kind and a cash payment

For vouchers to be recognized as a tax-free benefit in kind (Sachbezug), they must not constitute a cash substitute. This means:

• ✅ The voucher must be earmarked for a specific purpose (e.g., for supermarkets, gas stations, or restaurants).
• ✅ A direct cash payout or conversion into money is not permitted.
• ✅ Vouchers must be issued within the respective month – handing them over after the fact is not allowed for tax purposes.

If these requirements are not met, the voucher is treated as a monetary benefit and is subject to tax.

Tax advantages of employee voucher cards

Used correctly, employee voucher cards offer significant advantages for both companies and employees.

1. Tax-free benefit of up to 50 euros per month

Companies can grant up to 50 euros per employee each month tax-free, without incurring social security contributions or wage tax (Lohnsteuer).

2. No additional contributions for employers

Because the voucher qualifies as a tax-free benefit in kind (Sachbezug), companies save the employer's share of social security contributions.

3. Employees receive the full amount

Unlike a salary increase, the voucher reaches the employee without deductions – meaning real added value.

4. Flexible for various uses

Employee vouchers can be used in many ways, e.g., for:

• 🛒 Supermarket purchases
• ⛽ Gas stations
• 🍽️ Restaurants and cafés

A popular provider of digital employee vouchers is givve, which specializes in tax-free benefits.

Key requirements for tax exemption

1. Vouchers must be purchased in advance

Companies may purchase vouchers in advance, but each employee may receive only one voucher per month. This means:

• ✅ A voucher for January must not be issued only in February.
• ✅ Handing over vouchers after the fact makes them taxable.

2. Monthly handover is mandatory

The vouchers must be handed over to the employee within the respective calendar month. Making up for it later or collecting several vouchers is not permitted.

3. Vouchers must not be a cash substitute

The vouchers must be issued for a specific purpose or merchant. Permitted are, for example:

• ✅ Vouchers for a specific retailer
• ✅ Fuel vouchers
• ✅ Restaurant vouchers

4. Documentation is essential

Companies should document the issuance of vouchers precisely in order to prove their tax-free character. In the event of a tax audit, the tax office (Finanzamt) requires complete records.

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