Implications on receiving sponsorship money for startup business

L

leopoldo

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Goodmorning,
Can someone tell me if there are any tax/vat implications receiving funds for a startup online business. Enterprise has granted 2.500 euro already and in a few months will grant another 15,000.
If I can get corporate sponsorship also, are there any hidden tax/vat implications and what can this money be used for, ie marketing, development, wages etc etc?
rgds
Leo
 
Are you in a VATable business?

Sponsorship is effectively advertising so if your VATable on supplies you should charge VAT.

Unless you are a charity it's income.
 
Yes it is a VATable business, Thank you for this information I will add the VAT on to all sponsorship money received. Can I ask what to do if a small vehicle is sponsored to the company (at the moment sole trader) .

Rgds
 
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