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Peppol deadline: 01-01-2026
00

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Sponsorship: To include or not to include in vAT accounting?

JD
21/01/2024
Question

Dear Sir/Madam,

I have given items from my shop and advertising leaflets to a non-profit organisation for their quiz…. They are putting the items in a tombola and distributing the advertising leaflets to me.

The (sale!!) value of the goods is clearly stated on a form signed by the recipient, etc.

How do I process this?

Under expenses: the non-profit organisation is a private person, I believe? Dexxter does not provide an option for ‘association’ or ‘non-profit organisation’.

I have taken the sales value of those items (NOT the purchase value!), which seems okay to me. Right???

And do I include this amount in the vAT return? I did paid vAT on those goods!

PLEASE respond.

Kind regards.

I am not going to comment on the vAT, but a non-profit organisation is also a legal entity with a company number and must therefore be entered as a company.Thanks KDB!

I have updated it. I looked up the vAT number of the non-profit organisation and changed it as a new supplier... and then updated the supplier. This worked.

I sponsor even more schools... so I will also have to enter them as non-profit organisations soon...It still feels a bit strange... you're not purchasing goods, but I still have costs (advertising and marketing!).

Do I also have to create a sales receipt in the cash register?????? I don't think so...

Kind regards.

If it is sponsorship in exchange for advertising, you normally receive proof of this. You can then use this document for your records; an additional invoice is not necessary.

OK. I will not print a receipt from my own cash register.

I have now entered this form twice: one from 6% and one from 21% because I sponsored products from both 6% and 21%.

I also note in the notes that advertising leaflets were distributed (which is what actually happened).

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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