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3 Vat questions to answer before you sponsor a charity event

by , 14 March 2013
Karl works for 'TCC' and they've been approached by the Children's Home, a non-profit company, to sponsor a hole at the golf day at the end of March. Both parties are Vat registered. Is there a Vat benefit involved for sponsoring a charity event?

The golf day's being arranged by the Children's Home in order to raise funds. TCC sponsors R25 000 and orders advertising material to put up on the golf course. Is there Vat on the R25 000 and can TCC claim any of the Vat back on its advertising material?

Read on to find out…


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Is there a Vat liability involved with sponsorships for non profits?

To see if there's Vat involved, TCC should make the list below, for themselves and SARS to check their Vat liability:

Vat table 1


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Vat Table 2

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Vat Table 3


So to recap… TCC can claim input tax of R3 070.17 on the advertising costs.

Until next month!



Dee Bezuidenhout
Independent Vat Expert of the Practical Vat Loose Leaf







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Comments
2 comments


JG 2013-10-28 11:42:16

sponserships & VAT

Mandy 2013-03-15 15:14:40

Hi Dee,

In the table you state that input VAT cannot be claimed on the advertising as it is entertainment. However on your recap, you state that they can claim VAT of the R3070.17 as advertising costs.
Am I missing something here?

Thanks, Mandy

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