We have a foreign sponsor who is willing to sponsor junior and senior team jerseys/kit for (say) 3,000 euros.
Obviously we're not a business, or engaged in the course/furtherance of a trade, so we invoice the sponsor 3,000 and ignore VAT.
Thing is, that sponsor then has to self-account for VAT at that country's own rate - adding to the sponsor's total cost i.e. 3,000 plus that country's VAT, (say) 500; a total of 3,500.
We could invoice for (say) 2,500 and receive the 2,500 and the sponsor will then self-account for the VAT hit to himself of 500 i.e. total net cost to him of 3,000 but the benefit to us would then only be 2,500.
500 is a lot of cash to our club. And the sponsor can't move above 3,000.
Am I correct in all the above ? Is there a more usual/efficient way of doing this ?
Obviously we're not a business, or engaged in the course/furtherance of a trade, so we invoice the sponsor 3,000 and ignore VAT.
Thing is, that sponsor then has to self-account for VAT at that country's own rate - adding to the sponsor's total cost i.e. 3,000 plus that country's VAT, (say) 500; a total of 3,500.
We could invoice for (say) 2,500 and receive the 2,500 and the sponsor will then self-account for the VAT hit to himself of 500 i.e. total net cost to him of 3,000 but the benefit to us would then only be 2,500.
500 is a lot of cash to our club. And the sponsor can't move above 3,000.
Am I correct in all the above ? Is there a more usual/efficient way of doing this ?
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