Each company relies on adequate advertising to appropriately present and market itself and its products or services. As a result, the so-called advertising costs arise. From a tax point of view, these always fall under the operating expenses. This reduces the profit. In addition, companies are reimbursed the listed sales tax as input tax. Advertising costs must not be confused with the income tax- relevant advertising costs.
Basically, the advertising costs include the entire cost of advertising. These include preparation and concept development, use of funds and appropriate control measures.
It does not matter whether the expenses are incurred in-house or in a specially commissioned third-party company. It also includes staff costs, material expenses and overhead costs for an existing advertising department.
Possible advertising media
Companies can access a variety of advertising materials. The use of business cards is widespread everywhere. They are regarded as a figurehead and occur in daily business life.
Accessories printed with the company logo, such as ballpoint pens or notepads, are often used as giveaways. Flyers and brochures draw attention to a company, a product range or the service offered.
It makes sense to buy all the promotional items from the same provider in order to save time and thus personnel costs. This guarantees a uniform look and consistent quality of the products – a factor that should not be underestimated in the area of advertising media.
The online printing company CEWE-PRINT.de offers a large assortment of such advertising materials. Online ordering has the advantage of being able to do everything conveniently from the office.
The acquisition of customers also includes spots on the radio or television as well as a website. Even the entries in directories and newspaper advertisements fall under the advertising costs.
Sponsorship as advertising costs
Benefits in the form of money or assets that go to clubs or charitable organizations can also be treated as deductible advertising costs. However, the prerequisite is a consideration that the company receives.
This would be possible, for example, the public naming of the company or the hanging of company posters or banners. This is different from a normal donation.
Expenses for the use of advertising material
In addition to the actual production of certain advertising media further expenses for the use may arise.
These include postage costs for the dispatch of advertising letters or catalogs, rents for columns or walls on which posters are affixed, as well as fees for the broadcasting of commercials. These amounts are also part of the advertising costs.