{"id":4500,"date":"2021-04-04T14:16:00","date_gmt":"2021-04-04T14:16:00","guid":{"rendered":"https:\/\/wwwstaging.keesdeboekhouder.nl\/inkomsten-uit-een-sponsoring-of-fonds-de-belastingregels-uitgelegd\/"},"modified":"2024-10-11T12:12:45","modified_gmt":"2024-10-11T12:12:45","slug":"receiving-income-through-sponsorship-or-funding-the-tax-rules-explained","status":"publish","type":"post","link":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/receiving-income-through-sponsorship-or-funding-the-tax-rules-explained\/","title":{"rendered":"Receiving income through sponsorship or funding, the tax rules explained"},"content":{"rendered":"\t\t
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To keep art and culture affordable for everyone, artists and performers are often able to make use of subsidy, funding or sponsorship. But how do you include these cash flows in your accounts?<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Subsidy, funds and sponsorship
<\/strong>Suppose you receive a subsidy for organising a show or exposition for instance from the\u00a0Mondriaan Fonds<\/a>\u00a0or the\u00a0KF Heijn Fonds<\/a>. Then you submit these amounts as business income. Or suppose you hired people to build a light installation you designed or a voice actor to do the voiceover for an animation you created. In these cases you can submit these costs as business costs. Make sure these people or companies send you an invoice, so you can account for the costs. Most of the time there are as many costs as there is subsidy, so you will have little profit. This means you won\u2019t be charged with a lot of income tax over it.<\/p>\n

When you\u2019re awarded with a prize in a competition and you win prize money or when you get a scholarship because you\u2019re in college. Then this income belongs to your taxable income and so you need to submit it as business income. There is an exception: when you\u2019re awarded with a prize for your entire work this is untaxed for the income tax.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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How about sales tax (VAT)
<\/strong>When you invoice a sponsor you\u2019re obliged to charge VAT. But when you receive the money as a donation, you do not have to charge VAT. So there\u2019s a difference between a donation and a sponsorship. With a donation there is no compensation. With sponsoring there is. For instance by crediting the sponsor. When you receive a subsidy it depends on the type of compensation you provide. When you don\u2019t provide compensation then you don\u2019t have to charge VAT over the subsidy. When you do provide compensation, then you\u2019re obliged to charge VAT over the income you receive through subsidy.<\/p>\n

What is considered compensation and what isn\u2019t?
<\/strong>When you receive a one-off subsidy from your municipality on the condition of the event being held in the municipality, then this isn\u2019t considered as a compensation. But it is considered as a compensation when the subsidy is directly linked to the amount of sold tickets. Also, when the subsidy provider benefits directly from your activity, this is considered a compensation. For instance when the subsidy provider is a brewery that has the exclusive right to sell it\u2019s beer during your event.<\/p>\n

You don\u2019t have to charge sales tax over scholarships and prize money, because you don\u2019t provide compensation for it.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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