Vat on sponsorship

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figgy

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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?
 
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.
 
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?
 
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?
Click to expand...

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.
 
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
 
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
Click to expand...

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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