# Vat on sponsorship



## figgy (27 Feb 2008)

Anyone any idea on this...

We are currently sponsoring a GAA team and obviously they invoice us to settle - Should they include VAT on the invoice or is sponsorship exempt?


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## Graham_07 (27 Feb 2008)

It's the individual entity, company, business etc. that is VAT registered. Then, depending on the activity that may attract VAT at either 0 , 13.5 or 21%. I have not often encountered GAA teams being VAT registered, although certain clubhouse activities, e.g. a licensed bar, might be. Unless they provide a VAT invoice with a VAT number etc. you cannot assume VAT is included.


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## figgy (27 Feb 2008)

So if they are VAT registered which I would image they are due to bar etc.. Should they charge VAT on an the invoice they raise for sponsorship...

If they are not VAT registered - and therefor do not issue a VAT invoice we dont have to worry about VAT then?

Or am I simplifing the issue?


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## Graham_07 (27 Feb 2008)

figgy said:


> So if they are VAT registered which I would image they are due to bar etc.. Should they charge VAT on an the invoice they raise for sponsorship...
> 
> If they are not VAT registered - and therefor do not issue a VAT invoice we dont have to worry about VAT then?
> 
> Or am I simplifing the issue?


 
If they are VAT registered and if the activity now proposed is VATable then they should issue the appropriate invoice at whichever rate is applicable. 

If they are not VAT registered then there will be no VAT charged. 

Either way you do not have to "worry" about the VAT as it is up to the person being paid to ensure that VAT is charged where applicable. If you are charged VAT then, subject to it being a business related supply, then you will be entitled to a VAT input credit at whichever rate.


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## figgy (27 Feb 2008)

The problem is we can only reclaim a portion of our VAT as some of our business is international based - i will hope they are not vat registered

Thanks for that Graham_07

One last question - Is sponsorship a vatable activity - I am presuming it is the same as an advertising service? and therefor yes it is


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## Graham_07 (27 Feb 2008)

figgy said:


> One last question - Is sponsorship a vatable activity - I am presuming it is the same as an advertising service? and therefor yes it is


 
non commercial sporting activities by a not-for-profit organisation can be vat exempt, so it's possible that VAT may not apply, but the only way you will know is to ask the entity concerned if they will be charging VAT or not.


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## ubiquitous (28 Feb 2008)

figgy said:


> Anyone any idea on this...
> 
> We are currently sponsoring a GAA team and obviously they invoice us to settle - Should they include VAT on the invoice or is sponsorship exempt?



Its exempt. End of story.


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