Guides
Team clothing and taxes – what counts as a business expense
In short
Team clothing with a company logo can, under certain conditions, be claimed as a business expense for tax purposes. What matters is that the clothing is clearly recognisable as workwear and cannot be worn privately. For binding assessments in individual cases, we always recommend consulting a tax adviser (Steuerberater).
When does clothing count as workwear?
German tax law distinguishes between typical workwear and ordinary everyday clothing. Typical workwear – such as protective equipment, uniforms or clothing with the company logo that would not be worn privately – can be recognised for tax purposes as a business expense. Clothing that merely carries the logo but could otherwise be used as normal leisurewear is harder to classify.
Company logo as the decisive criterion
A clearly visible company logo – especially on the back – is an important indication that the clothing is used for work and would not be worn privately. The more prominent the logo, the clearer its occupational purpose. Clothing with a small, discreet logo can be assessed differently by the tax authority than clothing that is clearly recognisable as workwear.
Input VAT deduction and payroll tax
Businesses entitled to deduct input VAT (Vorsteuer) can claim the VAT on workwear under the conditions mentioned. When employers provide clothing to their employees, depending on the arrangement a non-cash benefit may arise that is subject to payroll tax (Lohnsteuer) – or, under certain conditions, remains tax-free. Here too, it depends on the individual case.
Our note
The tax treatment of company clothing depends on many factors: type of business, design of the clothing, size of the logo and intended use. This text is a general overview and not legal advice. For binding answers on your specific case, please contact a tax adviser.
Frequently asked questions
Can I deduct company shirts as a business expense?
That is possible if the clothing clearly counts as workwear – that is, it carries a clearly visible logo and would not be worn privately. The exact classification depends on the individual case. A tax adviser can clarify this bindingly for your business.
Is clothing for employees a non-cash benefit subject to payroll tax?
If workwear is typical occupational clothing, it is generally tax-free. Clothing without a recognisable occupational purpose could be treated as a non-cash benefit. Here too there are allowances and exceptions – a tax adviser knows the current limits.
Do I need receipts to deduct it for tax?
Yes, you should keep invoices and receipts for all business expenses. At macherkleidung.de you receive an invoice after the order, which you can show to your tax adviser.
